Filipinos deprived of P4-B a year due to NGCP IPO delay

The National Transmission Corporation (TransCo) today said that Filipinos are being deprived of the opportunity to earn over P4-Billion a year in stock dividends due to the delay in the National Grid Corporation’s (NGCP) Initial Public Offering (IPO).

TransCo President Atty. Melvin Matibag said this today as TransCo filed its Motion for Reconsideration with the Energy Regulatory Commission (ERC) to reverse the latter’s June 25, 2019 denial of TransCo and PSALM’s Petition for Intervention on the extension bid of the National Grid Corporation of the Philippines (NGCP) for its mandated IPO.

Matibag said that when NGCP declared P20-Billion in dividends for its three shareholders in 2016, about P4-B could have been dispersed to the investing public if only NGCP had an IPO in that year. The P4-Billion figure represents the 20% of capital stock of NGCP that should be dispersed within 10 years according to law as discussed during the April 3, 2019 hearing of Senate Committee on Energy chaired by Senator Sherwin Gatchalian.

"We are passionate about this IPO delay because NGCP has been granting about P20-Billion in dividends a year to its shareholders and total dividends given by the end of 2017 had already exceeded the P165-Billion concession fee that NGCP has been paying through installment." Matibag stressed.

In their Joint Motion for Reconsideration, TransCo and PSALM said that public interest would be jeopardized since a denial to intervene would mean that TransCo and PSALM would not be allowed to present documentary and testimonial evidence, cross examine NGCP’s witnesses, make and argue motions and raise objections during the course of the proceedings. Moreover, all pleadings TransCo and PSALM have submitted or will file with the ERC would not be considered evidence of the proceeding.

The ERC earlier denied TransCo and PSALM’s Petition for Intervention stating that the latter have no direct and substantial interest in the NGCP Petition and its outcome.

Matibag found the said ERC Denial disturbing since, according to him, " TransCo's assets are public assets. NGCP is TransCo's concessionaire in the operation and maintenance of these public assets. When it is imbued with public interests, TransCo, as representative of the public, should be allowed to intervene."

Matibag added, "The Concession Contract is bound by the laws of the Republic. The IPO provision of RA 9511 ensures that the public are able to participate in its business." He reiterated that as guardians of the consuming public, ERC should be encouraging TransCo's action and not stifling it.

Matibag also clarified that while ERC is the sole authority to regulate the transmission business, TransCo and PSALM, as the owners of the nationwide transmission system, have material interest and the right and obligation to ensure that NGCP, as the concessionaire, strictly complies with all the conditions of its statutory franchise, including the constitutional mandate of dispersal of ownership.

Since the concession period started in 2009, ERC had always allowed TransCo to intervene in NGCP's applications notably on its Maximum Allowable Revenue (MAR), Capital Expenditures, and Force Majeure Event Claims. This means that ERC recognizes TransCo and PSALM's direct and substantial interest in NGCP cases in view of their ownership of the nationwide transmission business, which is clearly imbued with public interest.

Matibag added that with ERC being inundated with cases, TransCo and PSALM could help ERC in the appreciation of the facts and circumstances obtaining in the case.



Did you know?

  • After TransCo's System Operations Group acquired an ISO certification for Quality Management in 2003, an "ISO fever" soon swept the Corporation.

  • By 2006, practically all departments have secured their own ISO certifications.

  • With numerous ISO certifications under its belt, TransCo soon set its sights on the more challenging Philippine Quality Award

  • The TransCo anniversary is observed every 26th of June, the same as that of the Electric Power Industry Reform Act (EPIRA).

  • TransCo started operating under a new table of organization on July 16, 2009 following the privatization of its transmission function.

  • The ERC designated TransCo as the FIT-All Fund Administrator on November 19, 2012.

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Contact Information

Address: Power Center,
Quezon Avenue corner BIR Road,
Diliman, Quezon City
1101
Philippines

E-mail: customerservice@transco.ph

Trunkline: 63 2 902-1500

Website: www.transco.ph


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