House panel threatens to withdraw NGCP franchise for failure to implement IPO
By Rica Arevalo
Published Sep 30, 2019 05:23 pm
By Ben Rosario
Members of the House Committee on Energy threatened on Monday to withdraw the legislative franchise granted to the National Grid Corporation of the Philippines (NGCP) for its failure to implement the initial public offering (IPO) provided under the law.
Rep. Jericho Nograles (Koko Nograles Facebook Page / FILE PHOTO / MANILA BULLETIN)
PBA Partylist Rep. Jericho Nograles, vice chairman of the House panel, said the delayed mandatory IPO is not the only main concern of lawmakers. He said there has been a significant drop in tax collections from its operations ever since the firm was privatized some ten years ago.
“There are issues raised against officials that could be plunderous,” said Nograles.
The senior administration lawmaker said grave concerns over the NGCP were aired by a number of congressmen who attended Monday’s committee meeting on the state of the electricity market and power transmission in the country.
NGCP was among the parties scheduled to brief the energy committee on the subject but its president and some key officials failed to show up.
“Galit na galit ang Committee on Energy. There is a move to investigate the firm,” said Nograles. (The Committee on Energy is very angry)
“Ang feeling ng Committee on Energy ay natakot ang presidente magpakita at sumagot dahil sicne the monopoly of NGCP started, it also signaled lower tax collections and higher dividends to NGCP,” he added.
According to Nograles the NGCP has been raking in P16 billion to P18 billion in dividends to its shareholders annually.
“But it has delayed the implementation of the capital expenditures so required under the law, including investment to the national grid,” said Nograles.
A motion to investigate the power transmission operator was swiftly approved as lawmakers noted that the NGCP has made moves to delay further the IPO for still unknown reasons.
Nograles explained that under the Electric Power Industry Reform Act of 2001 and as provided by the legislative franchise granted by Congress, NGCP is mandated to make a public offering within ten years since it operated.
According to Nograles the NGCP filed a motion to further delay the IPO as the ten-year deadline passed.
“But that is not the point of what the law is all about. Ang punto ng batas ay hindi pinahihintulutan ang monopolyo sa grid ng Pilipinas, because the issue is imbued with public interest,” he explained. (The point of the law is that monopoly in grid operation is prohibited in the country.)
The NGCP has asked the Energy Regulatory Commission to grant an extension of the IPO prompting the National Transmission Corporation to petition an intervention.
However, the ERC rejected Transco’s plea notwithstanding the latter’s insistence that it has the right to do so considering that the issue concerns the public interest.
Rep. Jericho Nograles (Koko Nograles Facebook Page / FILE PHOTO / MANILA BULLETIN)
PBA Partylist Rep. Jericho Nograles, vice chairman of the House panel, said the delayed mandatory IPO is not the only main concern of lawmakers. He said there has been a significant drop in tax collections from its operations ever since the firm was privatized some ten years ago.
“There are issues raised against officials that could be plunderous,” said Nograles.
The senior administration lawmaker said grave concerns over the NGCP were aired by a number of congressmen who attended Monday’s committee meeting on the state of the electricity market and power transmission in the country.
NGCP was among the parties scheduled to brief the energy committee on the subject but its president and some key officials failed to show up.
“Galit na galit ang Committee on Energy. There is a move to investigate the firm,” said Nograles. (The Committee on Energy is very angry)
“Ang feeling ng Committee on Energy ay natakot ang presidente magpakita at sumagot dahil sicne the monopoly of NGCP started, it also signaled lower tax collections and higher dividends to NGCP,” he added.
According to Nograles the NGCP has been raking in P16 billion to P18 billion in dividends to its shareholders annually.
“But it has delayed the implementation of the capital expenditures so required under the law, including investment to the national grid,” said Nograles.
A motion to investigate the power transmission operator was swiftly approved as lawmakers noted that the NGCP has made moves to delay further the IPO for still unknown reasons.
Nograles explained that under the Electric Power Industry Reform Act of 2001 and as provided by the legislative franchise granted by Congress, NGCP is mandated to make a public offering within ten years since it operated.
According to Nograles the NGCP filed a motion to further delay the IPO as the ten-year deadline passed.
“But that is not the point of what the law is all about. Ang punto ng batas ay hindi pinahihintulutan ang monopolyo sa grid ng Pilipinas, because the issue is imbued with public interest,” he explained. (The point of the law is that monopoly in grid operation is prohibited in the country.)
The NGCP has asked the Energy Regulatory Commission to grant an extension of the IPO prompting the National Transmission Corporation to petition an intervention.
However, the ERC rejected Transco’s plea notwithstanding the latter’s insistence that it has the right to do so considering that the issue concerns the public interest.