NGCP blames ERC on failure to conduct regulatory reset

ERC-NGCP

The National Grid Corporation of the Philippines (NGCP) has called out the Energy Regulatory Commission (ERC) following its decision to disallow some of its expenses, saying that it’s an “unfair” move from the latter. 

NGCP blames the ERC for the failure to conduct the needed regulatory reset. 

Bago ka maglaro, dapat alam mo ang rules, kaya to apply this retroactively, iniisip namin na kulang sa fairness iyong ganung desisyon,” NGCP Asisstant Vice President Cythnia Alabanza said in a statement. 

Earlier, ERC Chairperson Monalisa Dimalanta admitted the commission’s failure to conduct a regulatory reset, which is originally done every five years. 

“Nangyari ito kasi hindi po nangyari ‘yung rebisahan na every five (5) years. Ngayon nagkacram kami. Hinahabol namin ngayon ang mga kailangan para umusad tayo. Hindi kasi tayo uusad kung hindi natin naayos iyong mga bagay na dapat dati pa naayos,” Dimalanta said. 

ERC’s decision will entail a long-term impact on NGCP, its consumers and other businesses, Alabanza said. 

“At the end of the day, ang dapat binabalanse dito is iyong concerns ng consumer at ang karapatan niya sa mainam at magandang serbisyo sa tamang presyo… “Kailangan din timbangin ang concern ng isang negosyante o mamumuhunan para makakuha ng wastong returns sa kanyang ipinuhunan,” she added. 

NGCP emphasized the legitimacy of its expenses for corporate social responsibility (CSR) and public relations (PR), adding that these are part of the business expenses applied and approved by the ERC. 

“Like any other business, all legitimate business expenses are included to determine pricing. NGCP is a highly regulated entity where our revenue is capped, margins are determined by regulators, expenses reviewed and rationalized, and our recoveries regulated. Whatever we bill our customers is only what the regulator allows us to,” NGCP said. 

Alabanza noted that these expenses are legitimate business costs under the same rules that applied to the National Transmission Corporation. 

“Lahat ito’y lehitimong business expenses. Sa katunayan, iyong patakarang sinusunod ng NGCP sa aming pagnenegosyo, iyan ang mga rules na in-apply sa TransCo,” Alabanza said. 



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