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Manila Bulletin devider Philippines devider National devider Gatchalian eyes decoupling of NGCP's roles to strengthen national security

Gatchalian eyes decoupling of NGCP's roles to strengthen national security

Published Oct 15, 2024 07:08 am

At A Glance

  • Senator Sherwin Gatchalian is looking to file a bill that seeks to decouple the National Grid Corporation of the Philippines' (NGCP) roles as both system operator and network transmission provider in a bid to address national security concerns.

Senator Sherwin Gatchalian is looking to file a bill that seeks to decouple the National Grid Corporation of the Philippines’ (NGCP) roles as both system operator and network transmission provider in a bid to address national security concerns.

“I truly believe that the system operation of the transmission line is a monopoly covering Luzon, Visayas, and Mindanao and it should be in the hands of the government. However, we acknowledge the need for private capital for expansion, which is why we will keep the network transmission ownership in private hands so that they can make the necessary investments,” Gatchalian said at a recent Senate hearing on the proposed 2025 budget of the Department of Energy (DOE) and its attached agencies.

“But the system operator which dispatches electricity – like a traffic enforcer managing the flow of electricity from power plants – has a function tied to national security, and it should remain with the government,” he underscored.

Gatchalian serves as vice chairperson of the Senate Committee on Energy.

The proposed bill, currently being finalized, aims to amend Republic Act (RA) No.9511, the law that granted NGCP a franchise to operate, manage, and maintain the country’s national electricity grid.

The bill seeks to replace the franchise tax with standard corporate taxes.

If enacted into law, the measure would align NGCP’s tax obligations with those of other electric utilities and potentially increase government revenue, he said.

Specifically, the bill would exclude NGCP from exercising the system operations function and allow the DOE to determine which parts of the Transmission Development Plan (TDP) will be constructed and which critical transmission infrastructure projects may be undertaken by third parties.

These amendments aim to address delays in grid infrastructure development and incentivize NGCP to improve construction efficiency, Gatchalian explained.

"However, we acknowledge the need for private capital for expansion, which is why we will keep the network transmission ownership in private hands so that they can make the necessary investments,” Gatchalian said.

Related Tags

Department of Energy (DOE) Senator Sherwin T. Gatchalian Senate Committee on Energy National Grid Corp. of the Philippines (NGCP)
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