The National Grid Corporation of the Philippines (NGCP) said it is open to a government audit as long as it is done by the Energy Regulatory Commission (ERC), the only body it recognizes as mandated to promulgate and enforce the Philippine Grid Code.
“Pursuant to EPIRA (Electric Power Industry Reform Act) , it is the ERC and only the ERC that is tasked to promulgate and enforce the Philippine Grid Code, a code that governs the safe and reliable operation, maintenance and development of the national grid. At the risk of stating the obvious, the ERC is part of government; and the audit by the ERC is the only government audit prescribed by law,’’ NGCP said in a statement yesterday.
NGCP said the ERC has declared that it is in the process of finalizing its terms of reference of the audit.
It said it cannot agree to the proposed comprehensive system operations audit demanded by the Department of Energy and the National Transmission Corp. especially that the latter is conducting a regular periodic physical inspection of the substations and transmission assets nationwide which is permitted under their concession agreement, the next of which is expected to occur within the month, apart from its access to NGCP’s books and financial records.
‘’It is very clear, therefore, that PSALM’s or TransCo’s right to inspect or audit NGCP under the concession agreement cannot encroach into matters that are within the exclusive regulatory power of the ERC,’’ the systems operator concluded.
