Marcos: NGCP must take responsibility for power outage

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) must take responsibility for the power outage that hit Western Visayas a day after the New Year, President Marcos said on Friday, even as he also called for transparency from the operator of the state-owned power grid.

In a video message posted on Facebook, Marcos said the NGCP had a crucial two-hour window to prevent the system collapse as highlighted by the Independent Market Electricity Operator of the Philippines or IMEOP.

IMEOP is a private, non-stock, non-profit corporation that functions as the market operator of the Wholesale Electricity Spot Market.

“Regrettably, during this period, NGCP failed to resort to manual load dropping, resulting in the crisis that we are facing now,” the President said.

Marcos said NGCP’s failure to act during the crucial two-hour window was “a missed opportunity.”

“As the systems operator, the NGCP must proactively engage with distribution utilities and cooperatives to manage loads and prevent such system collapses,” Marcos said.

“Accountability lies with the NGCP. They are tasked with grid stability. Stability involves proactive responses to breakdowns and unexpected events, a duty that NGCP unfortunately has not fulfilled adequately,” he said.

DOE blames NGCP

The Department of Energy (DOE) is holding the NGCP accountable over the widespread power disturbance in Western Visayas, saying the prolonged power interruption affecting Panay Island could have been prevented had the NGCP been proactive.

“It is most lamentable that this island-wide blackout was preventable,” Energy Secretary Raphael Lotilla said.

“The Independent Electricity Market Operator of the Philippines has pointed out that there was a two-hour window when the NGCP could have proactively called on the distribution utilities and electric cooperatives in Panay to reduce their load in order to prevent a sub-systemwide collapse.”

Lotilla said NGCP did not do anything as the systems operator responsible for maintaining the stability and integrity of the transmission grid from the time a generator had an unscheduled breakdown past noon of Jan. 2.

“The loss of supply covering more than 15 percent of the power generated from Panay Island should have alerted NGCP to call for manual load reduction,” he said.

Lotilla said a previous incident in April last year that hit Panay Island should have served as a lesson to take extraordinary precautions due to the fragility of the grid.

NGCP earlier said the unscheduled maintenance shutdowns of the largest power plants in Panay were the primary cause of the power interruption.

Collaborate

Senators are calling on the DOE and the NGCP to collaborate and immediately address power outages that will negatively affect tourism and other businesses in Western Visayas.

Sen. Bong Go strongly urged the DOE and NGCP to collaborate on a lasting solution in response to the reported extensive power outage in Panay Island.

He expressed deep concern and disappointment over the extensive power outages in Western Visayas.

“The widespread lack of electricity throughout Western Visayas is sad and disappointing. It is not only the daily livelihood of our countrymen that is affected, but especially the ordinary and poor Ilonggos who cannot buy electricity, own generator, the most affected here,” said Go.

“Also affected are our hospitals with all that critical medical equipment that potentially make the difference between life and death,” he added.

Nearly three hundred public schools in Panay Island alone have reportedly suspended face-to-face classes. Business establishments have suffered huge losses due to damaged goods and non-operational equipment. All of these adversely affect the whole region’s quality of life and productivity, Go said.

As a member of the Senate committee on energy, Go said he finds these prolonged outages unacceptable. He urgently called on the DOE and the NGCP to collaborate and devise a lasting solution to prevent similar incidents in the future.

Like Go, Sen. Nancy Binay voiced her apprehension regarding the repercussions of the extensive power outage in Western Visayas on the tourism industry, particularly the hospitality sector and local businesses.

She said electricity in the country’s economy, particularly in tourism and other industries, is exceedingly significant for growth and development.

Lights went out across the islands of Panay, Guimaras and Negros at around 2:27 p.m. on Tuesday due to the tripping of multiple power plants, thereby isolating the three islands from the rest of the Visayas grid.

Senate President Juan Miguel Zubiri also earlier expressed frustration over the ongoing power outages, particularly in Iloilo. He insisted that the DOE and NGCP urgently resolve this issue to avoid causing irreparable harm to communities.

Zubiri also called for transparency from the DOE and NGCP in identifying the causes of these outages and developing a comprehensive plan to resolve them.

He affirmed the Senate’s readiness to investigate the root causes of the problem to find a solution.

Sen. Raffy Tulfo yesterday called for the cancellation of NGCP’s franchise for failure to prevent the power plant tripping that disconnected Panay island from the Visayas grid.

“It is time to speed up the revision and immediate removal of the NGCP franchise. For more than a decade and a half, the people have been sacrificing for their failures. Enough is enough!” the senator said.

Tulfo, who chairs the Senate energy committee, added that NGCP’s continued inefficiencies and failure to comply with its obligations strengthen his resolve to review its franchise, which he already investigated through a Senate resolution last year.

He said he will include the power outage in the resumption of his hearing into NGCP’s lapses during the scheduled committee hearing on Jan. 10.

Tulfo said he received a report by National Electrification Administration administrator Antonio Mariano Almeda submitted to President Marcos that found the NGCP also liable.

For his part, Sen. Francis Escudero wanted two power firms – Panay Energy Development Corp. and the Palm Concepcion Power Corp. – to be penalized for their inefficiencies that caused the power outage in Panay island this week.

“I want them to explain the unscheduled shutting down of their plants and why it took a longer-than-usual period to bring the power supply back,” Escudero said, adding that power firms should be fined for causing the power shortage that disrupted business operations on the first week of 2024.

“If their explanation is found wanting, they should be penalized for the business losses they created because of the blackouts. This is necessary so that other power generation companies or gencos will exercise more care and prudence in the operation of their plants as well as compliance with existing regulations,” Escudero said.

In Congress, the House committee on energy will hold a hearing next week to look into the massive power outages in Western Visayas.

Based on a notice of committee meetings, the panel chaired by Marinduque Rep. Lord Allan Velasco will conduct its second deliberation on House Resolutions 933, 934 and 944 in connection with the massive power interruption in the entire Panay in April 2023.

Tap Maharlika

Speaker Martin Romualdez yesterday proposed that the Maharlika Investment Corp. (MIC) consider investing in the NGCP to address the country’s power outages.

Romualdez said it would be a strategic investment that could provide “essential capital for infrastructure upgrades and help in lowering the cost of electricity for consumers.”

“I believe that investing in the power sector will set up major benefits for the country,” he noted.

According to Romualdez, the potential involvement of MIC “could lead to improved efficiency, economic growth, enhanced energy security, support for renewable energy integration and increased accountability in NGCP’s operations.”

The MIC acts as the steward of the Maharlika Investment Fund, the Philippines’ first sovereign wealth fund. It is chaired by Finance Secretary Benjamin Diokno.

Romualdez added that improving the country’s power infrastructure will result in cheaper electricity for consumers, making the country more attractive to foreign investors in terms of operational costs.

He pointed out that a “strengthened NGCP” would hasten the existing inter-connectivity plans.

“The involvement of the Maharlika Investment Corporation could be a significant step towards achieving a reliable, efficient and sustainable energy infrastructure,” he maintained.

The Speaker also urged the ERC and NGCP to conduct a thorough investigation into the cause of the Western Visayas power outage. — Sheila Crisostomo, Mark Ernest Villeza, Marc Jayson Cayabyab, Cecille Suerte Felipe