MANILA — The Department of Energy is not in favor of revoking the franchise of the National Grid Corporation of the Philippines.
However, Energy Undersecretary Sharon Garin also asserted the franchise of the country's sole power grid operator must be thoroughly reviewed.
Speaking to ANC Wednesday, Garin said there was a need to strengthen the authority of government over the entity.
She also added the franchise given to NGCP was "generous".
"It's generous in a sense na ang taxes nito is 3 percent, in lieu of everything. So, hindi na magbabayad 'yan ng corporate income tax, kahit mga real estate tax, lahat sa local sales tax, everything," she told "Headstart".
"Why was it like that? I think that is one incentive that we gave it to them. It was purchased I think around $4 billion. That's a huge investment. Someone was willing, a private entity, to undertake the huge responsibility. Part na rin 'yan ng incentive sa kanila.
"But also now, if you look at the subsequent franchises given by Congress, I don't think I've seen anything like that na 3 percent siya. It's time to review," she added.
Garin though is not keen on having another entity that will operate the country's power grids.
"It's more efficient, less expensive for everyone if we only have 1 grid," she said.
President Ferdinand Marcos, Jr. has cautioned against revoking NGCP's franchise.
"There has to be a good reason para i-withdraw ang prangkisa," he told reporters in a chance interview in Ilocos Norte last week.
Senators have voiced concern over possible foreign influence and security vulnerabilities in the NGCP.
These issues were raised because NGCP is partly owned by China.