Bill separating NGCP’s roles as system operator, transmission provider eyed

A measure is being drafted in the Senate which would see a decoupling of the roles of the National Grid Corporation of the Philippines (NGCP) from being both system operator and network transmission provider.

Senator Win Gatchalian said he would file a bill to address national security concerns hounding NCGP operations.

Gatchalian believes that the transmission line’s system operation is a “monopoly covering Luzon, Visayas and Mindanao and it should be in the hands of the government.”

“However,” he said, “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.”

Function tied to national security

Gatchalian stressed that the system operator that 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.

The lawmaker is now finalizing his proposed bill which aims to amend Republic Act 9511, the law that grants NGCP a franchise to operate, manage and maintain the country’s national electricity grid.

According to Gatchalian, the eyed 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.

Specifically, the bill would exclude the NGCP from exercising system operations and allow the Department of Energy to determine “which parts of the Transmission Development Plan will be constructed and which critical transmission infrastructure projects may be undertaken by third parties.”

Gatchalian said these amendments aim to address delays in grid infrastructure development and incentivize NGCP to improve construction efficiency.