phgaming Fernandez quizzes ERC on NGCP rate reset; Rodriguez hits his use of drafts

MANILA, Philippines — Santa Rosa City Rep. Dan Fernandez quizzed the Energy Regulatory Commission (ERC) about some items included in the computation for the National Grid Corporation of the Philippines (NGCP) rate resetphgaming, but a fellow lawmaker scolded him for using draft decisions as the basis.

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During the House of Representatives committee on legislative franchise hearing on Thursday regarding NGCP’s franchise, Fernandez asked ERC Chairperson Monalisa Dimalanta about the rate reset of NGCP, presenting two documents: a draft partial initial determination for the period 2016 to 2020, and a draft final determination for the period 2016 to 2022.

A rate reset means regulated entities like NGCP must submit their spending, proposed projects, and earnings over a specific period, allowing the ERC to determine how much of it can be passed on to consumers through their electric bills.

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“Dimalanta confirmed that both draft documents came from the ERC, prompting Fernandez to ask why some of the figures that appeared were allegedly confusing.

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“And I just wanted to be cleared because I am somewhat confused with your decisions, with the value of the assets that was agreed upon by the ERC,” Fernandez said.

“So you said in your draft final determination which covers 2016 to 2022 […] here in our discussion that the commission and completed projects which should be allowed to be recovered by NGCP were included.  And here in your decision in the draft, the amount spent was also placed,” he added.

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READ: NGCP earmarks ₱600B for grid projects

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Fernandez claimed that the rate reset could drive electric prices higher, as more NGCP investments and expenditures might be factored in. However, before he could pose his question, Cagayan de Oro City 2nd District Rep. Rufus Rodriguez raised a point of order, stating that discussions during the hearing should not be based on drafts.

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“Mr. Chairman, point of order.  We cannot be discussing non-final decisions and merely a temporary draft.  Otherwise, we will be intruding into the authority of the ERC in finally determining what should be done to this particular period for reset,” Rodriguez said.

“How can we be discussing drafts?  I’d just like to ask, Ms. Dimalanta, are you agreeing to discuss here something that you have not finally decided on?” he asked.

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“That’s the reason why we have this oversight power, to check the abuse of some agencies of our government, especially those who are charging bills against our people.  That’s people’s money, there are projects that we said are not finished, and then we charge that against our consumers?  That’s what we’re fighting for here,” Fernandez countered.

Tensions between the two lawmakers rose, prompting committee chairperson and Parañaque 2nd District Rep. Gus Tambunting to ask Rodriguez about the point of order he raised. Fernandez then pointed out that his line of questioning did not violate any House rules.

“May we know what rule has been violated by Congressman Rodriguez because we have to understand that he is asking a question based on some research that he has made.  So let us give him that time […] I will agree but you know you will have to cite also what rules we have violated,” Tambunting noted.

“Honorable Rodriguez, so that we would be clear, for our procedures to be smooth in this hearing, let Dan Fernandez finish with his questions because there’s also an accusation here that it is not ERC’s fault.  So I think he’s also going to go there,” Tambunting added.

The hearing was suspended, preventing Fernandez from proceeding with his questions for the time being. However, later during the hearing, Fernandez asked why the ERC published the draft documents if people could not comment on them.

“A while ago Congressman Rufus and also ERC were discussing why this draft final determination was placed on our website, for the consumption of our consumers.  Because for our courts, it is not allowed to release partial decisions.  But I would like to be educated on this,” Fernandez said.

“Mr. Chair, the rule that requires publication of draft determinations has been there from the original rules of ERC setting the transmission billing rates.  I think, this is a personal view, it really is a commitment, not just an attempt, on the part of the commission, to adhere to principles of transparency in setting the rates,” Dimalanta noted.

Buskowitz, a provider of rooftop solar and renewable energy solutions, said Monday it secured the investment from APAC Sustainable Infrastructure Fund (A-SIF), being led by real assets manager Patrizia Se and Japanese investment firm Mitsui & Co., Ltd.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) tumbled by 2.1 percent, or 155.65 points, to 7, 272.65.

“It is in adherence to the principles of transparency and giving the public the ability to comment on the drafts, on the rates that will result from this exercise of the ERC […] The process is open to consumers,” she added.

READ: Marcos orders ERC to reset NGCP’s rates ‘without further delay’

Before the exchange between Fernandez and Rodriguez, Dimalanta said that a meeting would be held next week for the final evaluations of the rate reset.  The ERC had previously said that the new rates would be released by January 2025.

NGCP has come under scrutiny in the House, with key members like Albay 2nd District Rep. Joey Salceda warning Maharlika Investment Fund managers against investing in the company

According to Salceda, NGCP owed power consumers P200 billion in expenses that were disallowed in 2023.

READ: Beware of grid firm, PH wealth fund told

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Last January 13phgaming, House Speaker Ferdinand Martin Romualdez listed the probe on NGCP issues as among the investigations that will continue as Congress resumes its session.

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