Philippines Considers Taking Control of National Grid Corporation if Needed

The Philippine government is contemplating taking back control of the National Grid Corporation of the Philippines (NGCP) amid concerns about security threats posed by Chinese ownership.

This comes as Senator Raffy Tulfo met with President Ferdinand Marcos Jr. to discuss the urgent need to address potential vulnerabilities in the country’s energy grid systems operator.

Senator Tulfo, Chairperson of the Senate Committee on Energy, highlighted the security risks associated with the NGCP, which is 40 percent owned by the State Grid Corp. of China. This concern arises amid heightened tensions between the Philippines and China over territorial disputes in the South China Sea.

During the meeting, Senator Tulfo urged the government to consider returning the system’s operation of the transmission grid to the National Transmission Corporation (TransCo), a government entity, while allowing NGCP to handle maintenance responsibilities.

In response to Senator Tulfo’s proposal, the President expressed agreement and willingness to conduct a comprehensive study or hold hearings to assess the situation at hand.

According to a statement by the president through the Presidential Communications Office, the government is prepared to regain control of the NGCP “if necessary.”

According to Senator Tulfo, reports suggest that China may have the capability to remotely access and potentially disrupt the national grid.

Moreover, instructions and manuals in NGCP plants are allegedly already written in Chinese characters, with no Filipino technician knowing how to operate them.

Senator Tulfo also pointed out violations of NGCP’s franchise contract, particularly in terms of timely development and connectivity of the main energy power grid in different provinces. These concerns provide sufficient grounds for the government to reassess NGCP’s franchise, he argued.

Furthermore, Senator Tulfo emphasized that a significant portion of NGCP’s earnings benefits shareholders rather than system development. Despite holding only a 40 percent stake, Chinese shareholders reportedly possess the power to influence decision-making processes by vetoing or rejecting majority shareholder resolutions.

President Marcos Jr. expressed agreement with Senator Tulfo’s proposals, prioritizing the best interests of the Filipino people. Recognizing the potential national security threat and transmission lapses associated with NGCP, Senator Tulfo filed Senate Resolution No. 609, seeking a comprehensive investigation of the corporation.

Recent power outages and alerts in the Luzon grid have underscored the need to address energy-related issues urgently. By proactively examining NGCP’s operations, the government aims to ensure the reliability and security of the country’s energy infrastructure. (GFB)