Veteran solon sees no need to probe NGCP: They’ve been compliant

A veteran lawmaker questioned the purpose of the hearing of the House Committee on Legislative Franchises on NGCP, 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 BIR in the Ways and Means hearing clearly stated that NGCP has been paying all the tax liabilities of the company, and this was confirmed by the BIR chief,” Cagayan de Oro Rep. Rufus Rodriguez pointed out.

Rodriguez said that Energy Regulatory Commission (ERC) Chairperson 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 [we are] compliant with the 3% franchise tax,” Dimalanta told Rodriguez, referring to the franchise tax 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? Is that the reason, Mr. Chairman?” he added.

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.

“We have to look at the reasons. In fact, if we see the reasons for delays in the right of way that can never be secured, it stops the project,” he said.

Rodriguez expressed gratitude to NGCP for completing the MVIP project, saying more companies are putting up power generation plants in Mindanao because they can now sell to Luzon and Visayas if they have excess capacity.

“Mindanao has been connected to the Visayas in January of 2024; my constituents in Cagayan de Oro, second district would thank the NGCP for finally connecting Mindanao to the Visayas and to Luzon. Why? Because 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 the Visayas and Luzon,” he said.

Meanwhile, the Department of Energy (DOE) admitted that delays in transmission projects cannot solely be blamed on NGCP.

“Sa right of way meron pa. There are cases that have pending ERC approval also. It’s a culmination of everything, like sa Panay, there’s an issue with the owner and the DENR,” Undersecretary Sharon Garin said during the hearing of the Committee on Legislative Franchises.

Philreca Party-List Rep. Presley C. De Jesus welcomed Garin’s pronouncement, emphasizing that it is unfair to place all the blame on NGCP for the project delays.

“In short, hindi lang ito solely fault ng NGCP, just to make it clear. Ang masama rito, we’re not trying to defend NGCP. We’re trying to level the playing field. Kasi ang dating, kasalanan ng NGCP kung bakit maraming delays,” De Jesus said.

“But straight from the horse’s mouth, sabi mo may problema ERC at may pending pa sa korte,” he added.

De Jesus 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.

“Ano ba ang purpose natin, pababain ang presyo ng kuryente o we just blame one element of the energy family,” he said.