A veteran lawmaker questioned the necessity of a House Committee on Legislative Franchises hearing on the National Grid Corporation of the Philippines (NGCP), asserting that the transmission grid operator has complied with its franchise responsibilities.
Cagayan de Oro Rep. Rufus Rodriguez emphasized that the Bureau of Internal Revenue (BIR) confirmed NGCP’s compliance with tax obligations during a Ways and Means Committee hearing.
“The BIR clearly stated that NGCP has been paying all its tax liabilities, and this was confirmed by the BIR chief,” Rodriguez said.
Energy Regulatory Commission (ERC) Chairperson Mona Dimalanta also affirmed NGCP’s compliance with its 3% franchise tax obligation under Republic Act 9511.
“In another hearing, I confirmed from our records that NGCP is compliant with the 3% franchise tax,” Dimalanta said.
Rodriguez questioned the purpose of the probe, asking, “NGCP has complied; BIR and ERC confirmed this, so why are we here? Are we trying to dissolve NGCP’s 50-year franchise?”
He defended NGCP against criticism, citing delays in the Mindanao-Visayas Interconnection Project (MVIP) caused by right-of-way issues with a golf course.
“We must consider the reasons for delays, such as unresolved right-of-way issues that halt projects,” Rodriguez said.
He expressed gratitude to NGCP for completing the MVIP, which connects Mindanao to Visayas and Luzon, enabling efficient power distribution.
“My constituents in Cagayan de Oro’s second district thank NGCP for linking Mindanao to Visayas and Luzon. This connectivity ensures we can access power from other regions when needed and share excess capacity,” he added.
The Department of Energy (DOE) admitted during the hearing that delays in transmission projects cannot solely be blamed on NGCP.
“There are right-of-way issues and cases with pending ERC approval. It’s a culmination of factors, such as landowner disputes and DENR concerns,” said DOE Undersecretary Sharon Garin.
Philreca Party-List Rep. Presley C. De Jesus welcomed Garin’s clarification, arguing that it is unfair to place all the blame on NGCP.
“It’s not solely NGCP’s fault. We’re not defending them, but we need to level the playing field. As stated, there are also issues with ERC and pending court cases,” De Jesus said.
He emphasized the need for continuity in transmission projects, noting that changes in DOE leadership have shifted government priorities.
“Our purpose should be clear: to lower electricity costs, not to single out one entity in the energy sector,” De Jesus said.
