Solon: Do not blame NGCP, wants ERC penalized for allowing NGCP to pass on franchise tax to consumers

The Energy Regulatory Commission (ERC) admitted issuing a resolution allowing NGCP to pass on its 3-percent franchise tax to consumers.

During the hearing of the House Committee on Ways and Means, ERC Chairperson Monalisa Dimalanta disclosed that the body approved NGCP’s petition in 2011 and suspended it only in 2023.

Dimalanta clarified that the ERC cannot issue a refund order as the Commission was the one that issued the directive, and NGCP merely complied with it.

APEC Party-List Rep. Sergio Dagooc, for his part, wants to hold accountable ERC officials who approved NGCP’s petition to pass on the 3-percent franchise tax to consumers.

“What is the possible legal accountability on the part of the body that approved the resolution authorizing NGCP to pass on the 3% franchise tax to consumers?” Dagooc asked.

Dagooc also absolved NGCP from any responsibility, stressing that the grid operator merely acted based on the ERC resolution issued in 2011.

“Hindi naman nila ipasa iyon kung wala yung resolusyon na iyon, kung hindi sila pinahintulutan ng regulator,” the lawmaker pointed out.

The BIR, through Commissioner Atty. Romeo Lumagui Jr. also cleared NGCP of any wrongdoing in the tax dispute, saying it religiously pays the 3-percent franchise tax mandated by law.

Dimalanta added that from 2018, NGCP paid between P1.3 billion and P1.5 billion in franchise tax every year. She added that NGCP paid a total of P21 billion in franchise tax from 2016 to 2022.