Taclobqn City-Representative Rufus Rodriguez (2nd district, Cagayan de Oro City) questioned the purpose of the hearing of the House Committee on Legislative Franchises on the National Grid Corporation of the Philippines (NGCP).
Rodriguez emphasized that that there’s no compelling reason to conduct a probe because NGCP, under its franchise, had been verifiably compliant with its tax responsibilities as the country’s power transmission grid operator over the years.
Even the Bureau of Internal Revenue (BIR) chief, during the House Ways and Means committee hearing, confirmed that “NGCP has been paying all the tax liabilities of the company,” said the seasoned legislator.
Further, Energy Regulatory Commission (ERC) chairperson Mona Dimalanta also confirmed recently that NGCP is compliant with its tax responsibilities.
“In another hearing, I confirm that what we have seen from our records, NGCP is that compliant with the 3 percent franchise tax,” Rodriguez quoted Dimalanta as saying in deference 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 the House committee on legislative franchises. “Are we trying to dissolve the 50-year franchise of NGCP? Is that the reason, Mr. Chairman?” he probed deeper.
The Cagayan de Oro congressman further defended NGCP from public flak, emphasizing that it should not be blamed for the five-year delay in the Mindanao-Visayas Interconnection Project (MVIP), which actually encountered right-of-way issues with a golf course property.
“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,” Rodriguez said.
At the outset, Rodriguez expressed his gratitude to NGCP for eventually completing the MVIP project, saying more companies now are putting up power generation plants in Mindanao because they can now sell to Luzon and Visayas, in case 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,” Rodriguez propounded his stand.
Meanwhile, the Department of Energy (DOE) clarified to the committee that delays in transmission projects cannot solely be blamed on NGCP.
Energy Undersecretary Sharon Garin explained: “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.”
Representative Presley de Jesus of Philreca party-list, welcomed Garin’s pronouncement, confirming that it would be unfair to place all the blame on NGCP for the project delays.
He said: “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 added though that continuity of transmission projects is important, but rapped back at the panel: “Ano ba ang purpose natin? Pababain ang presyo ng kuryente or we blame one element of the energy family?”