Gatchalian to ERC: Issue an ultimatum on NGCP on IPO requirement

Senator Win Gatchalian urged the Energy Regulatory Commission (ERC) to issue an ultimatum on the National Grid Corporation of the Philippines (NGCP) to comply with the requirement to list its shares of stock, a provision specifically stated in its franchise as the country's transmission system operator.

The NGCP filed anew for a motion for reconsideration in August appealing for a year to extend the deadline on its compliance in the initial public offering (IPO) requirement after the ERC denied the company's earlier petition and issued a Decision in April 17 that NGCP should commence immediately the process of public listing and submit a compliance report.

While the ERC has yet to receive comments from the National Transmission Commission (Transco) and the Power Sector Assets and Liabilities Management Corp. (PSALM) on NGCP's motion for reconsideration, Gatchalian reminded the ERC that such requirement on the two Intervenors lapses on October 31, 2020.

Gatchalian expressed misgivings over NGCP's inaction on the matter, saying that there's no showing that the grid operator will comply with the requirement to list its shares of stock.

"The resolution is absolute. Within six months NGCP should be conducting an IPO but I'm very sure that's not going to happen. So if that will not happen what is the recourse?" Gatchalian asked.

Based on the franchise law, ERC Chairperson Agnes Devanadera said the NGCP has two options to satisfy the IPO requirement of the franchise, one is the public listing and the other is the listing of a holding company.

Given that the franchise imposes obligations on NGCP as the operator of the transmission grid, Gatchalian pointed out that there will be corresponding penalties and fines that could be slapped against the company for failing to comply with the ERC order.

"It's clear in their franchise that they should be offering its shares to the public," the senator said, noting that the NGCP's delay in issuing the IPO has already been two years.

Gatchalian underscored the significance of undertaking an IPO, especially in the case of NGCP which manages the government's transmission assets.

"I would like to again stress that the system operator should comply and this is part of the governance mechanism to get the public involved. When the public is involved, then there's more transparency. Shareholders demand accountability," Gatchalian said.

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Gatchalian hinimok ang ERC na bigyan ng ultimatum ang NGCP para magsagawa ng IPO

Hinimok ni Senador Win Gatchalian ang Energy Regulatory Commission (ERC) na bigyan ng ultimatum ang National Grid Corporation of the Philippines (NGCP) na mag-alok na ng shares of stock nito sa Philippine Stock Exchange alinsunod sa mga kautusang nakapaloob sa prangkisa ng kumpanya bilang transmission system operator ng bansa.

Naghain na naman kasi ang NGCP ng motion for reconsideration na himihingi ng palugit na isang taon para magsagawa ng Initial Public Offering (IPO) matapos maglabas ng kautusan ang ERC nuong Abril na dapat nang ipatupad ng NGCP ang pag-aalok ng IPO sa lalong madaling panahon. Pinagsusumite din ng ERC ang NGCP ng isang compliance report.

Bagamat hinihintay pa ng ERC mula sa National Transmission Corporation (TransCo) at Power Sector Assets and Liabilities Management Corporation (PSALM) ang kanilang komento sa apila ng NGCP, pinaalalahanan ng ERC ang dalawang tanggapan na pawang tagapamagitan o 'intervenor' ang deadline nilang October 31 para magsumite ng kanilang komento.

Ngunit duda ang senador na maisasakatuparan ng NGCP ang utos sa kanila ng ERC lalo na't wala itong ipinapakitang senyales sa pagtupad nito sa obligasyon na nakasaad sa batas.

"Ang resolusyon ay isang kautusan. Ano na ang gagawin ng ERC kung hindi na naman sumunod sa kautusan ang NGCP? Naantala na nga ng dalawang tao ang pagsasagawa nila ng IPO. Ngunit duda ako na mangyayari ito," ang mariing sinabi ni Gatchalian.

Maliwanag, ani Gatchalian, na isang ganap na batas ang prangkisang ipinagkaloob sa NGCP at ang hindi nito pagtugon sa mga probisyong nakapaloob dito ay may kaakibat na parusa at multa, bukod pa sa maaring ipataw ng ERC sa hindi pagtupad nito sa kanilang kautusan.

"Maaaring tanggalan sila ng prangkisa at ito'y isang klarong option kung hindi nila isasakatupan ang IPO," ani Gatchalian.

Sinabi pa ng senador, na siyang chairman ng Senate Energy Committee, kinakailangan ang pagsunod ng NGCP sa kautusang ito dahil ito'y isang mekanismo na inilatag ng pamahalaan para mabigyan ng pagkakataon ang publiko na makalahok sa operasyon ng kumpanya na siyang namamahala at nangangasiwa ng transmission assets ng gobyerno.

"Hangga't may partisipasyon ang publiko, makakaasa tayo ng transparency at pananagutan," pagtatapos ni Gatchalian.