House panel to probe NGCP franchise: Filipinos ‘shouldn’t pay for inefficiency’

Lawmakers at the House of Representatives have called for a review of the franchise of the National Grid Corporation of the Philippines (NGCP), which is tasked to operate, maintain, and develop the country’s state-owned power grid.

During a hearing of the House Committee on Legislative Franchises, Deputy Speaker David “Jayjay” Suarez moved to hold a motu proprio inquiry to look deeper into the NGCP and its franchise, citing what he said were violations of Republic Act 9511.

The move was seconded by Representative Danilo Fernandez, and was approved by Representative Gustavo Tambunting, who also sits as the committee chairperson, with no objections.

Suarez during the hearing questioned why NGCP charged customers for projects that they have yet to benefit from, along with its ownership structure and its compliance of the 20% public float.

“We shouldn’t be paying for things that we have not used or projects that are being pushed further back because of delays,” he said during the hearing.

“Hindi dapat binabayaran ng Pilipino ang inefficiency [Filipinos should not be paying for inefficiency]. We should be paying for efficiency, not inefficiency,” he added.

Just last month the Energy Regulatory Commission (ERC) slapped a P12.3-million fine on the NGCP due to its reported failure to justify “significant delays” in the implementation of 27 capital expenditure projects.

It earlier imposed a P3.5-million fine against the grid operator in an August 2024 decision, for the alleged delays in completing 10 other capex projects.

Questions were also raised regarding the ownership structure of NGCP and its compliance with the mandatory 20% public float, as Fernandez said the share swap transaction with Synergy Grid & Development Phils. Inc. (SGP) did not meet the franchise requirements.

For its part, the NGCP, through its spokesperson Cynthia Alabanza, said the firm adhered to the prevailing rules and that it will respond to concerns of lawmakers in a written statement.

“We just worked in the rules of existence then,” she said during the hearing. “NGCP has outspent the government five is to one. In terms of obligasyon namin na gumastos at paunlarin ang transmission grid, nagawa po ‘yun.”

(In terms of our obligation to spend and to improve the transmission grid, we have done that.) — BM, GMA Integrated News