A measure seeking to decouple the roles of the National Grid Corporation of the Philippines (NGCP) from being both system operator and network transmission provider is eyed in the Senate. 

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, 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,” he added. 

Gatchalian stressed 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 granted NGCP a franchise to operate, manage, and maintain the country's national electricity grid.

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, he said.

Specifically, the bill would exclude NGCP from exercising the system operations function 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.