Senator Sherwin Gatchalian is pushing to strengthen the authority of the Energy Regulatory Commission (ERC) to impose heavier and more proportionate penalties on power sector players that fail to meet project deadlines.

During a joint Senate hearing of the Committee on Energy with the Committees on Public Services; Civil Service, Government Reorganization and Professional Regulation; and Finance, on November 6, 2025, the Transmission Corporation (TransCo) and Power Sector Assets and Liabilities Management Corporation (PSALM) presented their findings on delays in numerous transmission projects.

According to TransCo’s assessment, 56.63% or 141 out of 249 transmission projects did not meet their target completion dates. Of these, 100 were finished beyond schedule, while 41 remain ongoing and delayed. TransCo also noted that some projects remain unassessed because of their limited access to records, as NGCP only allows reviews of financial-related documents.

NGCP’s legal counsel, Atty. Lally Mallari, defended the company, saying they have “extensively addressed the allegations” of non-compliance with their concession agreement. She explained that unassessed projects are still under contractors and, therefore, not yet considered transmission projects.

However, TransCo disagreed, emphasizing that ongoing transmission projects are already part of NGCP’s obligations under the concession agreement.

“The bulk [of projects] are delayed — ganun na lang ba talaga ang buhay?” Senator Pia Cayetano remarked, expressing frustration over the recurring issue of project delays.

Senator Gatchalian echoed this concern, highlighting that existing penalties are too small to deter large companies. He cited that in 2024, the ERC fined NGCP ₱15 million for 34 delayed projects — a minimal amount compared to its ₱17 billion net profit that year.

“Yung mga ganitong kumikita ng bilyon, dapat ang penalties hindi 15 million. Dapat hundreds of millions, at least, para maramdaman nila,” Gatchalian said.