By Benjamin Cuaresma
MANILA, Philippines — Senator Erwin Tulfo on Thursday challenged the National Grid Corporation of the Philippines (NGCP) over the continued imposition of line rental charges on electricity consumers, questioning why households are being made to shoulder additional costs that he argued stem from deficiencies in the country’s power transmission infrastructure.
The issue surfaced during a Senate Committee on Energy hearing on proposed amendments to the Electric Power Industry Reform Act (EPIRA), where lawmakers scrutinized electricity charges that continue to inflate consumers’ monthly power bills.
Directing his questions to NGCP officials, Tulfo cited complaints from consumers, particularly in the Visayas, who continue to pay line rental fees on top of existing system loss charges.
The senator questioned whether consumers should bear the financial consequences of transmission limitations and insufficient infrastructure, saying the burden should not fall on ordinary electricity users.
“Because, NGCP, your infrastructure is lacking… is that a consumer problem? Even the power line will be paid for,” Tulfo said during the hearing.
He further accused the transmission operator of unfairly passing additional costs to consumers.
“I’m very disappointed that you abused the consumers. Because Juan and Maria are silent. Can you explain that to us, NGCP? Even line rental is charged to the consumer. Please, please explain,” he added.
Responding to the criticism, NGCP Assistant Vice President Cynthia Albanza denied that the company directly collects the line rental fees, describing the term as a “misnomer.”
According to Albanza, the charge represents the additional cost incurred when electricity must be sourced from other areas after a power plant unexpectedly goes offline or when transmission lines become congested.
She explained that the situation is more prevalent in the Visayas because electricity must pass through multiple island interconnections, making the region more vulnerable to transmission constraints and replacement power costs.
Albanza stressed that the additional payment is a system cost associated with securing replacement power and is not revenue earned by the NGCP.
Unsatisfied with the explanation, Tulfo turned to the Energy Regulatory Commission (ERC) and other energy agencies, asking why regulators continue to allow consumers to absorb the added expense instead of requiring industry players to shoulder the cost.
ERC Chairperson Saturnino Juan acknowledged the concern and said the commission is already completing its review of mechanisms aimed at addressing the issue, including adjustments to the net settlement surplus that could result in higher refunds for consumers who paid elevated charges.
Juan said the ERC is also acting on a pending petition involving the matter and assured lawmakers that corrective measures are being finalized, particularly for consumers in the Visayas who have been most affected.
The exchange underscored growing scrutiny in the Senate over electricity charges that lawmakers say continue to burden consumers, as Congress moves forward with proposals to amend EPIRA and strengthen safeguards against costs viewed as unreasonable or unjustified.
ia/xf
