HONTIVEROS URGES ERC TO INVESTIGATE NGCP'S ANOMALOUS 4.4B EXPENDITURES ON ENTERTAINMENT, REPRESENTATION, ADS

Senator Risa Hontiveros on Thursday urged the Energy Regulatory Commission (ERC) to look into the anomalous expenditures of the National Grid Corporation of the Philippines (NGCP), saying that these expenses should not be charged to the Filipino consumers.

During the continuation of the Senate hearing on rotational blackouts in Metro Manila and other areas, Hontiveros flagged unscrupulous patterns in NGCP's expenditures, such as the remarkable spike in representation and entertainment expenses during and immediately after the 2013, 2016 and 2019 election years, as well as sudden spending on public relations since 2017, the time when various issues against NGCP were raised in Congress.

"Hindi ba't kaduda-duda na kada o pagkatapos ng eleksyon ay tumataas ang gastos nila sa representation at entertainment. Coincidence lang ba? At simula 2017, nang mabuksan ang imbestigasyon sa NGCP sa Kongreso, NGCP was spending P300 million per year sa public relations. It seems too much of a coincidence," she said.

Hontiveros revealed that from 2009 to 2020, NGCP spent P1.454B on Representation & Entertainment, P1.032B on advertising, P1.268B on Public Relations, and P646 Million on professional fees based on the Annual Audited Financial Statements filed by the NGCP with the Securities and Exchange Commission (SEC).

She furthered that ERC must explain where in the current cost structure for transmission charges paid by electricity consumers these expenses are potentially being charged.

"One of the primary mandates of the ERC is to regulate the NGCP. Isa sa dapat tinitingnan ng ERC ay kung ang bilyun-bilyong gastos sa mga bagay na walang kinalaman sa transmission ay ipinapasa sa konsyumer through the transmission charge sa ating monthly bills," Hontiveros added.

"Ang legit transmission charges ay power delivery service, metering and common charge, charges on connection and residual sub-transmission, FME Pass through, PFA and interruption billing adjustment, ancillary services, as well as NGCP regulated and excluded services. Saan kaya dito kinukuha ang anomalous expenditures na ito?" she asked.

She pointed out that when divided into pesos per kilowatt hour (kWh), taking into consideration Meralco's system rate of P9.96/kWh, this P4.4B NGCP non-power related expenditure is equivalent to 441.77 million kWh. "Ganito karaming kWh ito kung naging kuryente. Imagine na lang natin kung hahatiin ang kabuuang ito sa mga kumukunsumo ng 200kWh per month pababa, ito ay isang buwang kuryente sa mahigit 2.2 milyong households," said Hontiveros.

Hontiveros also stressed that the NGCP spent more than P1B on advertising, despite operating a natural monopoly.

"Are these expenses passed on to consumers? Are these expenses the reason our grid upgrade and maintenance projects are delayed to the great detriment of Filipinos? Are these kinds of expenses also existing in other utilities and allowed by the ERC be recovered through rates? We cannot allow corporate greed to thrive and further burden our consumers. Hindi ngayon, lalong hindi sa mga susunod na panahon." Hontiveros concluded.

#####

HONTIVEROS, PINAIIMBESTIGAHAN SA ERC ANG MAANOMALYANG P4.4B GASTOS NG NGCP SA ENTERTAINMENT, REPRESENTATION, ADS

Hinimok ni Senador Risa Hontiveros nitong Huwebes ang Energy Regulatory Commission (ERC) na suriin ang maanomalyang paggasta ng National Grid Corporation of the Philippines (NGCP) at siguraduhing hindi ito sinisingil o ipinpasa sa mga konsyumer.

Sa pagpapatuloy ng pagdinig ng Senado tungkol sa rotational blackout, pinuna ni Hontiveros ang mga maanomalyang patten sa paggastos ng NGCP, tulad ng biglaang pagtaas ng gastos sa representation at entertainment kada o pagkatapos ng halalan noong 2013, 2016 at 2019.

Binanggit din ni Hontiveros ang biglaang paggastos ng NGCP sa public relations mula 2017, taon kung kailan lumabas sa Kongreso ang iba't ibang mga isyu laban dito.

"Hindi ba't kaduda-duda na kada o pagkatapos ng eleksyon ay tumataas ang gastos nila sa representation at entertainment? Coincidence lang ba? At simula 2017, nang mabuksan ang imbestigasyon sa NGCP sa Kongreso, NGCP was spending P300 million per year sa public relations. It seems too much of a coincidence," ani Hontiveros.

Ibinunyag ni Hontiveros na mula 2009 hanggang 2020, ang NGCP ay gumastos ng P1.454B sa Representation & Entertainment, P1.032B sa advertising, P1.268B sa Public Relation, at P646 Milyon sa professional fees batay sa inihaing Annual Audited Financial Statements ng NGCP sa Securities and Exchange Commission (SEC).

Sinabi pa ng Senador na dapat ipaliwanag ng ERC kung saan sa kasalukuyang cost structure para sa transmission charges ito sinisingil sa mga konsyumer.

"One of the primary mandates of the ERC is to regulate the NGCP. Isa sa dapat tinitingnan ng ERC ay kung ang bilyun-bilyong gastos sa mga bagay na walang kinalaman sa transmission ay ipinapasa sa konsyumer through the transmission charge sa ating monthly bills," ani Hontiveros.

"Ang legit transmission charges ay power delivery service, metering and common charge, charges on connection and residual sub-transmission, FME Pass through, PFA and interruption billing adjustment, ancillary services, as well as NGCP regulated and excluded services. Saan kaya dito kinukuha ang anomalous expenditures na ito?" tanong niya.

Ayon kay Hontiveros, kung kukwentahin sa piso bawat kilowatt hour (kWh), ang P4.4B na expenses ng NGCP ay katumbas ng 441.77 milyon kWh base sa rate ng system ng Meralco na P9.96 / kWh. "Ganito kalaki ito kung naging kuryente. Imagine na lang natin kung hahatiin ang kabuuang ito sa mga komukonsumo ng 200kWh per month pababa, ito ay isang buwang kuryente sa mahigit 2.2 milyong households," dagdag ni Hontiveros.

Binigyang diin din ni Hontiveros na ang NGCP ay gumastos ng higit sa P1B sa advertising, sa kabila ng pagiging 'natural monopoly'.

"Ipinasa ba ang mga gastos na ito sa mga konsyumer? Ito rin ba ang dahilan kung bakit naantala ang pag-upgrade ng grid at maintenance projects? May mga ganito rin bang gastos sa ibang mga utilities na pinapayagan ng ERC na ma-recover through rates? We cannot allow corporate greed to thrive and further burden our consumers. Hindi ngayon, lalong hindi sa mga susunod na panahon." pagtatapos ng Senador.