Rep Salceda pushes PHP204.3B NGCP refund, calls for ownership probe

Albay Rep. Joey Salceda is pushing for legislative reforms to refund PHP204.3 billion in alleged excess revenues by the National Grid Corp. of the Philippines (NGCP) to consumers, based on an ERC preliminary rate review.

Salceda stated that profits beyond the allowed level should be returned to consumers and highlighted NGCP's current tax structure, involving only a 3 percent franchise tax, which is significantly lower than other utilities.

During a briefing before his House panel on Tuesday, Salceda noted that based on ERC records, NGCP has been regularly paying its franchise tax since 2018, averaging around PHP1.3 to 1.5 billion annually.

Salceda also called for a probe into the ownership of NGCP to determine whether it violated the Anti-Dummy Law and claimed that two officials of the State Grid Corporation of China report to the Chinese Communist Party.

He added that ERC-approved revenues were P183.5 billion, while NGCP's actual revenues amounted to P387.8 billion from 2010 to 2016, indicating a PHP204.3 billion excess.

Salceda emphasized the need for legislative reforms and a refund mechanism to protect Filipino consumers from excessive costs, noting that NGCP does not pay corporate income tax (CIT), value-added tax (VAT), or real property tax (RPT).

According to Salceda, Congress has the authority to amend NGCP's franchise to make its tax and profit structures fairer.