No Need for NGCP Probe: Veteran Lawmaker Highlights Compliance and Systemic Issues in Energy Delays

by: Edjun Mariposque

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January 14, 2025

4–6 minutes

A strong stance against calls for a probe into the National Grid Corporation of the Philippines (NGCP), Cagayan de Oro Rep. Rufus Rodriguez defended the transmission grid operator, emphasizing that the company has been fully compliant with its franchise responsibilities. Speaking during a hearing of the House Committee on Legislative Franchises, Rodriguez questioned the necessity of investigating NGCP, given its record of adherence to tax and operational requirements.

“The Bureau of Internal Revenue (BIR) has clearly stated during the Ways and Means hearing that NGCP has been paying all its tax liabilities, which was confirmed by the BIR chief,” Rodriguez said. He also highlighted that Energy Regulatory Commission (ERC) Chairperson Mona Dimalanta corroborated this, confirming the operator’s compliance with the 3% franchise tax mandated under Republic Act 9511.

Rodriguez criticized the House committee for pursuing a probe despite clear evidence of NGCP’s compliance. “Precisely, that was the issue. NGCP has complied. BIR said NGCP has complied, so why are we here? Are we trying to dissolve the 50-year franchise of NGCP? Is that the reason, Mr. Chairman?” he asked.

Delays Explained: Right-of-Way Challenges

Addressing concerns over the five-year delay of the Mindanao-Visayas Interconnection Project (MVIP), Rodriguez clarified that NGCP faced significant right-of-way issues, including challenges with a golf course that delayed the project. He expressed gratitude to NGCP for overcoming these obstacles and completing the MVIP in January 2024, connecting Mindanao to Visayas and Luzon.

“My constituents in Cagayan de Oro’s second district thank NGCP for finally linking Mindanao to Visayas and Luzon. Now, if Mindanao has excess capacity, it can support Visayas and Luzon, and vice versa,” Rodriguez said. He added that the interconnection has encouraged more companies to establish power generation plants in Mindanao due to the expanded market access.

DOE and Lawmakers Call for Fair Assessment

The Department of Energy (DOE) supported Rodriguez’s assertions, acknowledging that delays in transmission projects are not solely the fault of NGCP. DOE Undersecretary Sharon Garin pointed out that issues such as right-of-way disputes, pending ERC approvals, and other bureaucratic hurdles contribute significantly to delays.

“Right-of-way problems remain. There are also cases pending ERC approval and disputes with the Department of Environment and Natural Resources (DENR),” Garin said during the hearing.

Philreca Party-List Rep. Presley C. De Jesus echoed this sentiment, calling for a balanced perspective. “It’s unfair to place all the blame on NGCP. This is not about defending NGCP but leveling the playing field. There are multiple factors, including ERC and court-related delays,” De Jesus said.

He also highlighted the need for continuity in government energy policies, noting that frequent changes in DOE leadership often disrupt the prioritization of key projects. “Ano ba ang purpose natin, pababain ang presyo ng kuryente o we just blame one element of the energy family,” (“What is our goal here? To lower electricity prices or to simply blame one element of the energy family?”) he asked.

Call for Collaboration

Rodriguez and other lawmakers stressed the importance of fostering collaboration between the government and private sector players like NGCP to ensure the timely completion of transmission projects. The solon urged his colleagues to focus on resolving systemic issues rather than singling out the NGCP for blame.

With the successful completion of the MVIP, lawmakers hope for continued progress in addressing the country’s energy transmission challenges, ensuring a stable and interconnected power grid for all regions.

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