MANILA, Philippines — The Energy Regulatory Commission (ERC) and the National Grid Corp. of the Philippines (NGCP) have reached a compromise deal to resolve their longstanding disputes over permit and regulatory fees.
ERC chairman and CEO Francis Saturnino Juan and NGCP president and CEO Anthony Almeda signed the agreement yesterday, coinciding with a courtesy visit by NGCP officials led by tycoon Henry Sy Jr.
Under the agreement, the grid operator accepts the ERC’s permit, supervision and regulation fees as valid charges and agrees to stop contesting them in the cases covered by the settlement.
Any fees already paid, including those paid under protest, will be treated as fully settled.
The STAR has sought details from the ERC on the amount of fees covered by the agreement but has yet to receive a response.
The dispute stemmed from the ERC’s imposition of permit fees on a per-project basis, as well as annual supervision and regulation fees on NGCP, which the grid operator had consistently paid under protest.
The NGCP challenged the fees before the Court of Appeals and the Supreme Court, arguing that its franchise exempts it from all fees and charges.
The issue spanned several cases before the appellate courts, with the ERC maintaining that the charges are regulatory and administrative in nature and therefore fall outside the scope of the NGCP’s franchise exemption.
According to Sy, the compromise agreement underscores NGCP’s commitment to “constructive engagement and cooperation” with the regulator.
“Both parties have chosen a resolution through dialogue and agreement, allowing us to move forward with greater regulatory certainty and without the continued expenditure of public and private resources,” Sy said.
“This agreement demonstrates that good faith, cooperation and due regard for the responsibilities of both institutions ultimately best serve the interests of the consuming public. We look forward to continuing to work with the ERC in the same spirit of cooperation,” he added.
As the country’s sole transmission operator, the NGCP holds a 25-year concession contract and a 50-year franchise to operate the state-owned power grid.
“For years, this dispute stood in the way of a clear and settled understanding between the ERC and NGCP on the nature of these fees,” Juan said.
Under the settlement, proceeds from ERC permit, supervision and regulation fees, including past collections and future payments, will go to the National Treasury to help fund government programs and basic social services.
“It is the kind of harmony we want to see between regulator and regulated: one built on clarity, mutual respect and a shared commitment to the public interest,” Juan said.
The ERC and the NGCP are expected to submit the compromise agreement to the high court and the appellate court for approval within 30 days of its execution.