NO MORE POWER FAILURE: NGCP Assures Congress No Repeat of 2024 Panay Blackout, But MORE Power Raises Concerns

By Francis Allan L. Angelo

The National Grid Corporation of the Philippines (NGCP) assured Congress on December 23 that a repeat of the January 2024 blackout in Panay Island is unlikely, citing improved power reserves and contingency measures.

During a hearing of the House Committee on Legislative Franchises, lawmakers scrutinized the NGCP’s preparedness for potential disruptions, especially amid the looming La Niña phenomenon expected in 2025.

Rep. Dan Fernandez of Laguna’s 1st District raised doubts about the NGCP’s ability to provide adequate ancillary reserves for Panay Island, referencing the economic toll of the previous outage.

“Atty. Cynthia (Alabanza), mag-Jajanuary na ha. Baka mamaya mag-outage na naman. Todas na naman tayo diyan,” Fernandez said.

NGCP Corporate Communications AVP Cynthia Alabanza responded, highlighting the completion of the Competitive Selection Process (CSP) for ancillary reserves in Visayas, ensuring power reliability 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 said.

Fernandez pressed for stronger commitments, stressing the need for adequate 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,” he stated.

Concerns Over Iloilo Substation Delays

MORE Power, Iloilo City’s electricity distributor, expressed alarm over delays in NGCP’s 3×100 MegaVolt Ampere (MVA) substation, originally scheduled for completion by 2025.

Roel Castro, MORE Power president and CEO, said the delay would impact Iloilo City’s economic growth, compounded by the 162 unscheduled power interruptions in 2024 that resulted in 811 hours of outages attributed to NGCP.

“We are alarmed by the delay of this project. The number of outages that we’ve been having — 162 outages in 1 year alone — is something very alarming,” Castro told lawmakers.

NGCP cited site access issues for the delay but assured Congress that the project, now focused on a 1×100 MVA capacity, would be completed by 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,” Alabanza explained.

Castro appealed for the project to include the original 3×100 MVA capacity to address Iloilo’s growing power demand and encourage further investments.

Iloilo’s Growing Power Needs

Department of Energy Undersecretary Sharon Garin underscored the urgency of upgrading NGCP’s facilities, citing Iloilo’s demand growth of 13%, far above the national average of 6%.

“This growth reflects Iloilo’s rise as a major economic hub, which demands sufficient infrastructure to sustain it,” Garin said.

Committee Chairman Gus Tambunting noted that NGCP must accelerate efforts to meet the region’s needs.

“This growth isn’t slowing down, and neither should the development of critical facilities,” Tambunting said.