A fresh wave of blame game is electrifying the discourse surrounding the National Grid Corporation of the Philippines (NGCP), the country’s grid operator—but while digging up past regulatory missteps might make for catchy headlines, the real power play lies in tackling the tough questions: who foots the bill for endless regulatory delays? And what are the real consequences for the urgent investments needed to expand and modernize the grid, particularly to underpin the Philippines’ ambition for massive-scale renewable energy (RE) investments?
To be fair to the country's system operator, it is not the sole transmission company in the world that has been problematic when it comes to scaling up investments for grid expansions and modernization; rather, this is a universal dilemma plaguing energy markets across both developed and developing nations—a challenge precipitated by the sweeping transformation of energy systems fundamentally shaped by a surge in green investments and essentially testing the limits of infrastructure.
Most extra high voltage transmission projects typically take seven to 10 years to fully develop—whether in the US, Europe, Latin America, or across other Asian energy markets; a lengthy gestation period that underscores intricate and often painstaking journey from initial project blueprint to the seamless integration of generated capacity into a fully functional power grid.
Regulatory delays, rising electric bills
So, what’s the latest controversy stirring the pot in the Philippine energy sector? NGCP, the industry’s perennial punching bag, is once again caught in the crossfire over accusations of inflated top and bottom lines—allegedly exceeding the regulatory-approved revenue caps. With massive consumer refunds already making the rounds in the industry, the heat is really on for the embattled system operator.
Certainly, any prospect of a refund will be music to consumers' ears. Still, the electric bills can’t reflect true celebration over slashed transmission charges until the Energy Regulatory Commission (ERC) delivers its long overdue verdict. So, are we there yet? Sadly, the answer is a resounding NO!
A thorny issue somehow rears its ugly head: who shoulders the burden of regulatory inaction or delayed approvals? It’s undeniable that it's us—the powerless consumers.
The ERC itself has admitted that NGCP’s rates haven’t been adjusted since 2016, meaning the total allowable revenues still embedded in its tariffs are based on outdated resets—creating a glaring cost mismatch that consumers are now left to absorb.
When the Marcos administration took the helm in 2022, the industry regulator promised swift action on a regulatory reset for NGCP—with the first tariff adjustment designed to close the gap from 2016 to 2022, followed by further adjustments for the current period. Yet, as the clock relentlessly ticks on, nothing substantial has materialized, thus leaving consumers in limbo.
Based on what the ERC had announced then, the NGCP regulatory reset would have been approved as early as the first quarter of 2023, with signals pointing to a likely refund on transmission charges that consumers could expect in their electric bills—yet roughly two years, here we are, still waiting for that promised relief.
In fact, the “huge burden” that Filipino ratepayers have been forced to shoulder in their bills due to regulatory delays may not just be limited to NGCP—this financial strain could be rippling across other regulated entities, including private distribution utilities like Manila Electric Company (Meralco) and even electric cooperatives, with consumers footing the bill for a system that’s stalled in perpetual gridlock.
Sure, the current ERC leadership can always point fingers at their predecessors from the past administrations, but the real question is: does the glacial pace of approvals today differ from the past—or is it just a relentless repeat of the same slow-motion bureaucracy that continues to hold consumers hostage?
Beyond the mounting concerns over rate-setting delays, there's also that growing fear among investors that the incessant attacks on NGCP could stifle much-needed capital outlay for grid connection projects—particularly the critical backbone designed to support the integration of government-backed RE projects.
To give credit where it's due, several industry players have cheered NGCP for successfully completing major transmission projects—including the Mindanao-Visayas Interconnection Project (MVIP), the Cebu-Negros-Panay Interconnection Project, and the Mariveles-Hermosa-San Jose transmission line—each of which stands as a critical infrastructure milestone poised to support the country’s growing energy load and demand across key regions.
The MVIP, in particular, enables the export of any surplus capacity from the Mindanao grid to the energy-starved Luzon and Visayas grids, and that project likewise serves as a concretization of the country’s long-time dream of having a nationally connected power grid.
Thus, for politicians hell-bent on scrutinizing NGCP’s finances and operations, why not take a more thorough, comprehensive approach to the investigation? Don’t just zero in on what you deem as NGCP’s faults and shortcomings—turn the spotlight also on the inaction of regulators, especially the ERC, and maybe even reflect on your own legislative moves. After all, the very tax regime you’re questioning was integrated into its franchise, which, at the core, is a law passed by Congress itself.
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