Press Release - Hontiveros presses energy officials to implement game-changing reforms to reduce electricity costs

Senator Risa Hontiveros is advocating for game-changing reforms in the energy sector to alleviate the burden of high power rates on Filipino consumers. She insists on the need to reduce the National Grid Corporation of the Philippines (NGCP) and other private distribution utilities' (PDUs) hefty Weighted Average Cost of Capital (WACC) and eliminate the value-added tax (VAT) imposed on system losses and lifeline subsidies.

"Kung magagawa agad ito, magiging maagang pamasko sa ating mga kababayan ang agarang pagbaba ng kuryente sa bansa. We should start making significant strides towards reducing the burden on Filipino consumers when it comes to their electricity bills," Senator Hontiveros stated, reiterating further that the lowering of WACC and the removal of VAT are crucial steps in achieving more affordable electricity for all.

Hontiveros also emphasized the importance of a more rapid deployment of renewable energy to ensure universal access to modern electricity services, especially in social housing, rural electrification, and addressing energy poverty. These proposals are in line with the strategic framework outlined in the 2023-2028 Philippine Development Plan, aimed at reducing electricity rates for consumers.

During the budget deliberations of the Department of Energy, Energy Regulatory Commissioner Monalisa Dimalanta confirmed the completion of the fourth regulatory reset process (RP) for the NGCP and plans to initiate the RP for PDUs.

"This reset is expected to tame NGCP's high revenues, unconscionable payout of cash dividends for its shareholders, and rationalize unwarranted operational expenses, including the ?2.3 billion for Public Relations and Corporate Social Responsibility, ?1.67 billion for Representation and Entertainment, and ?1.1 billion for Advertising," Hontiveros said.

She also questioned the staggering ?8,729,751,797 billion budget allocated for Security and Janitorial services by NGCP. She expressed her concern about the magnitude of this expense item, which ranks second only to repairs and maintenance costs (P12,274,585,564).

"Marami bang dumi sa loob ng NGCP na kailangang linisin ng linisin bakit ganito kalaki ang budget sa janitorial