A veteran lawmaker has raised concerns about the need for the House Committee on Legislative Franchises’ investigation into the National Grid Corporation of the Philippines (NGCP), stating that there is no reason for a probe as the company has been fulfilling its franchise obligations.
Cagayan de Oro Rep. Rufus Rodriguez pointed out that NGCP has been meeting its responsibilities, particularly in terms of taxes. He noted that the Bureau of Internal Revenue (BIR) confirmed during a Ways and Means hearing that NGCP has been paying all its tax liabilities.
Rodriguez also cited Energy Regulatory Commission (ERC) Chairperson Mona Dimalanta, who affirmed that NGCP is compliant with its tax obligations, particularly the 3% franchise tax mandated under Republic Act 9511.
“NGCP has complied; BIR said NGCP has complied, then why are we here?” Rodriguez questioned. “Are we trying to dissolve the 50-year franchise of NGCP? Is that the reason, Mr. Chairman?” he added.
The congressman further defended NGCP, especially regarding delays in the Mindanao-Visayas Interconnection Project (MVIP). He explained that the delays were due to right-of-way issues with a golf course, which impeded progress. He emphasized that such obstacles were beyond NGCP’s control.
Rodriguez expressed gratitude for the completion of the MVIP, which connected Mindanao to the Visayas and Luzon, boosting opportunities for power generation in Mindanao. He explained that the connection allows Mindanao to provide power to the Visayas and Luzon when needed, and vice versa.
Meanwhile, the Department of Energy (DOE) acknowledged that the delays in transmission projects could not solely be blamed on NGCP. Undersecretary Sharon Garin clarified that issues with right-of-way and pending ERC approvals have contributed to the delays, citing cases such as the one in Panay involving the DENR and landowners.
Philreca Party-List Rep. Presley C. De Jesus echoed Garin’s statement, pointing out that the blame for the delays should not be placed entirely on NGCP. “It’s not solely the fault of NGCP,” De Jesus emphasized. “We’re not trying to defend NGCP; we’re trying to level the playing field.”
De Jesus also discussed the importance of continuity in transmission projects and how changes in government priorities, due to new DOE appointments, have affected their progress. “What is our goal—lowering electricity prices or just blaming one part of the energy family?” he concluded. (National Grid Corporation of the Philippines)
