A veteran lawmaker questioned the purpose of the hearing by the House Committee on Legislative Franchises on the National Grid Corp. of the Philippines, stressing that there’s no reason to conduct a probe as the transmission grid operator has been compliant with the responsibilities under its franchise.
“The Bureau of Internal Revenue during the Ways & Means hearing clearly stated that NGCP has been paying all the tax liabilities, and this was confirmed by the BIR chief,” Cagayan de Oro Rep. Rufus Rodriguez pointed out.
He said that Energy Regulatory Commission Chair Mona Dimalanta also confirmed that NGCP is compliant with its tax responsibilities.
“In another hearing, I confirm that what we have seen from our record is that NGCP is compliant with the three percent franchise tax,” Rodriguez reported, quoting Dimalanta.
The franchise tax was granted to NGCP under Republic Act 9511.
“Precisely, that was the issue. NGCP has complied; BIR said NGCP has complied, then why are we here?” Rodriguez asked. “Are we trying to dissolve the 50-year franchise of NGCP?” Rodriguez asked.
Rodriguez also defended NGCP from criticism, noting it should not be blamed for the five-year delay in the Mindanao-Visayas interconnection project as it encountered right-of-way issues with a golf course.
“Mindanao has been connected to Visayas in January of 2024. If we need more power from Visayas and Luzon, they can give it to us, and if they have excess capacity in Mindanao, we can help Visayas and Luzon,” he said.
Meanwhile, the Department of Energy admitted that delays in transmission projects cannot solely be blamed on NGCP.
“There are cases that have pending ERC approval also. It’s a culmination of everything,” Undersecretary Sharon Garin said during the hearing of the Committee on Legislative Franchises.
PhilRECA Party-List Rep. Presley de Jesus welcomed Garin’s pronouncement, emphasizing that it is unfair to place all the blame on NGCP for the project delays.
He also stressed the importance of continuity in transmission projects, saying the appointment of new DOE officials has led to changes in the government’s priorities.
“What is our goal: to lower the cost of electricity or just put the blame on one element of the energy family?” he said. (PR)