TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENA^E^ 
S.B. No.
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25 JllL 10 P2 '-OS
RECEIVED BV;
Introduced by Senator WIN GATCHALIAN
AN ACT AMENDING REPUBLIC ACT NO. 9511, ENTITLED "AN ACT 
GRANTING THE NATIONAL GRID CORPORATION OF THE PHILIPPINES A 
FRANCHISE TO ENGAGE IN THE BUSINESS OF CONVEYING OR 
TRANSMITTING ELECTRICITY THROUGH HIGH VOLTAGE BACK BONE 
SYSTEM OF INTERCONNECTED TRANSMISSION LINES, SUBSTATIONS AND 
RELATED FACILITIES, AND FOR OTHER PURPOSES"
EXPLANATORY NOTE
Republic Act No. (RA) 9511, which granted the National Grid Corporation of the 
Philippines (NGCP) a franchise to engage in the business of conveying or transmitting 
electricity, provides that it shall operate, manage, and maintain, and in connection 
therewith, to engage in the business of conveying or transmitting electricity through 
high voltage back-bone system of interconnected transmission lines, substations and 
related facilities, system operations, and other activities that are necessary to support 
the safe and reliable operation of the transmission system and to construct, install, 
finance, manage, improve, expand, operate, maintain, rehabilitate repair and refurbish 
the present nationwide transmission system of the Republic of the Philippines.1
Seventeen (17) years after the enactment of RA 9511, various concerns have fueled 
the need to amend NGCP's franchise. First, there is a need to address delays in grid 
infrastructure development and incentivize the NGCP to improve construction 
efficiency. By highlighting NGCP's role as a Transmission Network Provider (TNP), the 
NGCP can focus on operating, managing, and maintaining the physical infrastructure
Section 1 of RA 9511.


of the nationwide grid. This approach could allow NGCP a more focused and 
specialized approach on the physical infrastructure of the grid in order to enhance the 
reliability and development of the transmission network.
Second, there is likewise a need to align NGCP's tax obligations with other electric 
utilities and potentially increasing government revenue. This is to ensure fairness 
among power utilities as other franchises do not impose a franchise tax in lieu of 
corporate income tax and all other national taxes. This change aligns NGCP with the 
standard corporate tax framework, creating parity in tax treatment across the sector.
Third, there is a need to ensure protection of consumers against potential electricity 
rate increases due to the passing on of new tax liabilities. The prohibition of corporate 
income tax pass-through to consumers is already set to zero as per the 2022 Amended 
Revised Rules for the Setting of Transmission Wheeling Rates issued by the ERC.2 This 
amendment aims to legislate this current practice into law.
Fourth, a review of NGCP's franchise is warranted in light of its persistent operational 
shortcomings and infrastructure delays. In January 2024, Panay Island plunged into a 
preventable multi-day blackout after NGCP did not act during a two-hour window to 
call for manual load reductions—despite a similar collapse in April 2023.3 In November 
2024, the Energy Regulatory Commission (ERC) imposed a Php 12.3 million penalty 
against NGCP for failing to complete twenty-seven (27) capital-expenditure projects 
on schedule, resulting in unjustified delays in critical grid expansions and upgrades.4 
In January 2025, National Transmission Corporation (TransCo) stated that fifty-eight 
(58) ongoing NGCP projects - 75 percent of its pipeline - remained incomplete, with 
individuai deiays stretching beyond nine years.5 These systemic deficiencies drive up 
transmission costs for end-users and highlight the urgent need to undertake a
2 Section 5.6.6., 2022 Amended Rules for Setting Transmission Wheeiing Rates.
3 DOE. OPENING STATEMENT OF ENERGY SECRETARY RAPHAEL P.M. LOTILLA DURING THE PRESS CONFERENCE ON THE 
PROLONGED POWER INTERRUPTION THAT AFFECTED PANAY ISLAND. httDs://leqacv.doe.qov.ph/press-releases/openinq- 
statement-energy-secretary-raphael-pm-lotilla-durinq-press-conference. Accessed 27 June 2025.
4 GMA. ERC slaps P12.3-M fine vs NGCP over 27 deiayed projects.
https://www.qmanetwork.com/news/monev/companies/928179/erc-slaps-pl2-3-m-fine-vs-nqcp-over-27-delayed-
proiects/story/. Accessed 27 June 2025.
5 PNA. TransCo: NGCP's project delays spur higher power costs, https://www.pna.qov.ph/articles/1242494. Accessed 27 June 
2025.


thorough review of NGCP's franchise to safeguard the reliability, affordability, and 
resiliency of the nation's power transmission system.
Finally, there is likewise a need to strengthen government and congressional oversight 
functions to ensure that Congress is kept up to date on the rollout, development, and 
operations of the NGCP.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
IN GATC


H-ai 2
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
F/rst Regular Session
SENA T^E^
S. B. No. 568
of t'K ©ttretiti?
25 JUL 10 P2 :08
RECEIVED BV:
Introduced by Senator Sherwin Gatchalian
AN ACT AMENDING REPUBLIC ACT NO. 9511, ENTITLED "AN ACT 
GRANTING THE NATIONAL GRID CORPORATION OF THE PHILIPPINES A 
FRANCHISE TO ENGAGE IN THE BUSINESS OF CONVEYING OR 
TRANSMITTING ELECTRICITY THROUGH HIGH VOLTAGE BACK-BONE 
SYSTEM OF INTERCONNECTED TRANSMISSION LINES, SUBSTATIONS 
AND RELATED FACILITIES, AND FOR OTHER PURPOSES"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Section 1 of Republic Act No. 9511 is hereby amended to read as
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follows:
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SECTION 1. Nature and Scope of Franchise. — Subject to the provisions of the
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Constitution and applicable laws, rules and regulations, and subject to the
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terms and conditions of the concession agreement and other documents
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executed with the National Transmission Corporation (TransCo) and the Power
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Sector Assets and Liabilities Management Corporation (PSALM) pursuant to
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Section 21 of Republic Act No. 9136, which are not inconsistent herewith, there
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is hereby granted to the National Grid Corporation of the Philippines,
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hereunder referred to as the Grantee, its successors or assigns, a franchise to
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operate, manage and maintain, and in connection therewith, to engage in the


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business of conveying or transmitting electricity through high voltage back­
bone system of interconnected transmission lines, substations and related 
facilities, [systems operations,] and other activities that are necessary to 
support the safe and reliable operation of a transmission system and to 
construct, install, finance, manage, improve, expand, operate, maintain, 
rehabilitate, repair and refurbish the present nationwide transmission system 
of the Republic of the Philippines: PROVIDED, THAT THE PRIVILEGE TO 
OPERATE THE TRANSMISSION SYSTEM GRANTED HEREWITH TO 
THE GRANTEE SHALL EXCLUDE SYSTEM OPERATION. The Grantee shall 
continue to operate and maintain the subtransmission systems which have not 
been disposed by TRANSCO. Likewise, the Grantee is authorized to engage in 
[ancillary business and] any related business which maximizes utilization 
of its assets such as, but not limited to, telecommunications system, pursuant 
to Section 20 of Republic Act No. 9136. The scope of the franchise shall be 
nationwide in accordance with the Transmission Development Plan (TDP), 
subject to amendments or modifications of the said Plan, as may be approved 
by the Department of Energy (DOE) of the Republic of the Philippines; 
PROVIDED, THAT TRANSMISSION ASSETS TO BE CONSTRUCTED 
AND MAINTAINED BY THE GRANTEE SHALL BE DETERMINED AND 
SPECIFIED BY THE DOE IN THE TDP; PROVIDED FURTHER, THAT 
CRITICAL INFRASTRUCTURE PROJECTS IN THE TDP, AS MAY BE 
DETERMINED BY DOE, MAY BE CONSTRUCTED BY ANOTHER PARTY 
AND THEN TURNED OVER TO THE GRANTEE FOR MANAGEMENT, 
IMPROVEMENT, EXPANSION, MAINTENANCE, REHABILITATION, 
REPAIR, AND REFURBISHMENT. THE GRANTEE SHALL NOT, 
WHETHER DIRECTLY OR INDIRECTLY, ENGAGE IN SYSTEMS 
OPERATION OF THE TRANSMISSION GRID. "SYSTEM OPERATION" 
SHALL BE DEFINED AS THE REAL-TIME CONTROL, MANAGEMENT, 
AND COORDINATION OF THE ELECTRICAL POWER GRID, 
INCLUDING BUT NOT LIMITED TO LOAD DISPATCH, GRID


BALANCING, VOLTAGE CONTROL, FREQUENCY REGULATION, AND 
ALL ACTIVITIES NECESSARY TO ENSURE THE SAFE, RELIABLE, AND 
EFFICIENT OPERATION OF THE TRANSMISSION SYSTEM.
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SECTION 2. Section 9 of Republic Act No. 9511 is hereby amended to read as 
follows:
SECTION 9. Tax Provisions. — [In consideratioi> of the franchise and 
rights hereby granted, the] THE Grantee, its successors or assigns, shall 
pay [a franchise tax -equivalent to three percent (3%) of all gross
receipts derived by the Grantee from its operation under this
franchise. Said tax shall be in lieu of] income tax and any and all taxes, 
duties, fees and charges of any kind, nature or description levied, established 
or collected by any authority whatsoever, local or national, on its franchise, 
rights, privileges, receipts, revenues and profits, and on properties used in 
connection with its franchisee, from which taxes, duties and charges, the 
Grantee--is hereby expressly exempted]: Provided, That the Grantee, its 
successors or assigns, shall be liable to pay the same taxes on their real estate, 
buildings and personal property, exclusive of this franchise, as other 
corporations are now or hereby may be required by law to pay: Provided, 
further. That payment by Grantee of the concession fees due to PSALM under 
the concession agreement shall not be subject to income tax and value-added 
tax (VAT): PROVIDED FINALLY, THAT THE GRANTEE SHALL NOT BE 
ALLOWED TO PASS-ON TAXES TO CONSUMERS.
SECTION 3. Section 15 of Republic Act No. 9511 is hereby amended to read as 
follows:
SECTION 15. Reportoriai Requirement - The Grantee shall submit, 
INCLUDING BUT NOT LIMITED TO, an annual report of finances and


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operations to the Congress of the Philippines^]/ THROUGH THE JOINT 
CONGRESSIONAL ENERGY COMMISSION (JCEC), ON ITS 
COMPLIANCE WITH THE TERMS AND CONDITIONS OF THE 
FRANCHISE AND ON ITS OPERATIONS ON OR BEFORE APRIL 30 
EVERY YEAR AFTER THE EFFECTIVITY OF THIS ACT, AND SUCH 
OTHER DOCUMENTS OR INFORMATION AS MAY BE REQUIRED BY 
THE JCEC.
THE ANNUAL REPORT SHALL INCLUDE AN UPDATE ON THE ROLLOUT, 
DEVELOPMENT, OPERATION AND/OR EXPANSION OF THE 
BUSINESS; COMPLIANCE WITH THE TDP; AUDITED FINANCIAL 
STATEMENTS; LATEST GIS OFFICIALLY SUBMITTED TO THE SEC (IF 
AVAILABLE OR APPLICABLE); AND CERTIFICATION FROM THE ERC 
ON THE STATUS OF ITS PERMITS AND OPERATIONS.
IN ADDITION TO THEIR EXISTING POWERS AND FUNCTIONS UNDER 
REPUBLIC ACT NO. 7638, REPUBLIC ACT NO. 9136, AND OTHER 
APPLICABLE LAWS, THE DOE AND THE ERC SHALL REGULATE THE 
COMPLIANCE OF THE GRANTEE WITH THE TDP, AND ITS OTHER 
OBLIGATIONS UNDER THIS FRANCHISE, ITS CONCESSION 
AGREEMENT, AND OTHER APPLICABLE LAWS, RULES AND 
REGULATIONS.
SECTION 4. Repealing Clause. - All laws, decrees, orders, issuances, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed 
or modified accordingly.
SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.