NGCP clarification on electricity rates hike

/ 05:10 AM February 23, 2018

This refers to a news article, “Electricity rates to rise by 8¢/kWh due to TRAIN” (Business, 1/10/18), by Ronnel Domingo.

The article states in part: “…the newly enacted Tax Reform for Acceleration and Inclusion (TRAIN) law, which took effect on Jan. 1, reimposed the value-added tax on wheeling charges.


“Section 86 of the TRAIN law or Republic Act No. 10963 repeals laws or provisions of laws that provide VAT exemptions.

“Sec. 9 of the NGCP franchise law states that ‘payment by grantee of the concession fees due to PSALM (Power Sector Assets and Liabilities Management Corp.) under the concession agreement shall not be subject to income tax and value-added tax (VAT).’” (emphasis supplied)


The National Grid Corp. of the Philippines would like to clarify that:

It is the transmission wheeling charges which are affected by the TRAIN law and will be subjected to value-added tax. TRAIN did not affect the concession fee payments which are due to PSALM.

We hope this clarifies the matter.

CYNTHIA D. PEREZ-ALABANZA, spokesperson and head of corporate communications and public affairs department, National Grid Corp. of the Philippines [email protected]

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TAGS: Electricity Rates, Tax Reform for Acceleration and Inclusion (TRAIN) law
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