The National Grid Corporation of the Philippines (NGCP) has assured members of the House Committee on Legislative Franchises that a repeat of the January 2024 power outage in Panay Island is unlikely, citing sufficient power supply and contingency measures.
The Committee convened a hearing on December 23 to discuss power utilities’ preparedness for the potential impact of La Niña in 2025.
Congressman Dan Fernandez of the 1st District of Laguna expressed concerns about NGCP’s ability to provide sufficient ancillary reserves for Panay Island, reminding them of the significant economic impact of the previous blackout.
“Atty. Cynthia (Alabanza), mag-January na ha. Baka mamaya mag-outage na naman. Todas na naman tayo diyan,” Fernandez stated.
In response, Atty. Cynthia Alabanza, NGCP’s Assistant Vice President for Corporate Communications, explained that they have completed the Competitive Selection Process (CSP) for ancillary reserves in the Visayas, ensuring sufficient power even during peak demand.
“Yung requirement po ng NGCP na mangontrata ng firm contract under the CSP, tapos na po yan. At yung iba po, bibilhin natin sa merkado,” Alabanza explained.
However, Congressman Fernandez sought stronger assurances, emphasizing the need for contingency and dispatchable reserves in all regions. “If we have reserves in Luzon, Visayas, and Mindanao, there is no reason why we shouldn’t have reserves for the coming January. You’ve stated that we’ve met the ancillary service requirements, so I will take your word for it. At least we have ancillary services, regulating reserves, contingency reserves, and dispatchable reserves across Luzon, Visayas, and Mindanao,” Fernandez asserted.
Concerns Raised by MORE Power
Meanwhile, MORE Power, the electricity distribution utility in Iloilo City, raised concerns regarding the delay in the commissioning of NGCP’s 3×100 MegaVolt Ampere (MVA) substation, currently under construction in Iloilo City. The substation was initially promised to be completed before the end of 2025.
MORE Power President and CEO Roel Castro highlighted the significant impact of 162 unscheduled power interruptions in 2024 alone, totaling 811 hours of outages attributed to NGCP. These interruptions have severely affected their operations and consumers.
“But to note, with the latest information we got, it’s just the 1×100 MVA to be finished in 2025. We are alarmed by the delay of this project. The number of outages that we’ve been having—162 outages in one year alone—is something very alarming,” Castro said during the hearing.
NGCP explained that the project delay is due to access issues with the site where the substation will be located. “The project is now scheduled to be completed in the second quarter of 2025. We had to negotiate access to the site with one of the power plants, which caused a delay. However, the issue has been resolved, and we aim for a completion date in the second quarter of next year,” Atty. Alabanza clarified.
Castro reiterated his appeal for the completion of the project to include the full 3×100 MVA capacity as originally agreed, highlighting the need to cater to the significant growth of Iloilo City and Panay Island, particularly in terms of investment and power demand.
Government Perspective
Department of Energy Undersecretary Sharon Garin emphasized the importance of NGCP’s facilities, noting that Iloilo’s demand growth is at 13%, while the national demand growth exceeds 6%.
Legislative Franchise Committee Chairman Gus Tambunting underscored the urgency for NGCP to accelerate its efforts in Iloilo and across the country to meet growing power demand.
