Senators seek refund of collected charges from NGCP delayed projects

Senators are now seeking a refund of all the charges collected by the National Grid Corporation of the Philippines (NGCP) for its uncompleted transmission projects. Sen. Sherwin Gatchalian made the suggestion noting that the government has been looking for ways to lower the prices of electricity in the country. “I have asked the ERC (Energy Regulatory Commission) to compute how much have been charged to us consumers for their uncompleted projects, because that should be returned to us,” Gatchalian said in a Radio DZBB interview. “And they should be penalized. It should not only be returned, there should also be a penalty,” the Senate Committee on Energy’s vice committee chairman said. Sen. Francis “Chiz” Escudero welcomed the suggestion noting that the ERC is the agency that approves and sets energy policies into motion. “Anything and everything in our electric bill has to be approved by the ERC. The remedy of anyone seeking a refund, or compensation for that matter, is to go to the ERC,” Escudero said. “This, therefore, begs the question… If it is indeed illegal, why did/has the ERC allowed it?! So if ERC allowed it, how can it be illegal… If it is wrong or unfair, then, as I said the solution and remedy is with the ERC, not NGCP…” he pointed out. Escudero reiterated ERC’s mandate as a regulatory body is to “prevent or correct abuses in the market” especially in a highly regulated sector such as power. “They are barking at the wrong tree because businesses will always look for and seek a profit and you cant blame them for it because that is their nature,” the lawmaker stressed. Sen. Joseph Victor “JV” Ejercito also said he believes Gatchalian’s suggestion to refund the amount collected for NGCP’s unfinished projects resonates with the call of all power consumers. Besides, he said, NGCP, “in my opinion, did not comply to their commitment for expansion and improving power distribution.” “(So) ERC ordering a refund or discount on shortchanged consumers is an option,” Ejercito stressed. NGCP earlier defended their move to collect charges despite the fact they have yet to finish the transmission projects, saying this had been in place since the government operated the grid. Senators had zeroed in on NGCP’s finances as they criticized the consortium, which is 40 percent owned and operated by the State Grid of Corporation of China, for prioritizing the payouts of its shareholders rather than spending for the improvement of their transmission projects.