Tulfo raises China’s 'alleged control' over NGCP with Marcos

Senator Raffy Tulfo has raised China’s "supposed control" over the National Grid Corporation of the Philippines (NGCP) and its implications to national security with President Ferdinand “Bongbong” Marcos Jr. in a meeting in Malacañang.

“[The] Chinese ownership of NGCP poses serious national security threat considering the current conflict between China and the Philippines over the West Philippine Sea (WPS),” said Tulfo, chairman of the Senate committee on energy, said as he noted that the company is 40 percent owned by the State Grid Corporation of China.

Citing an intelligence report, Tulfo also said that China supposedly has the capability to remotely access the country’s national grid and “sabotage it.”

He added that there are no Filipino technicians who know how to operate sensitive equipment inside the NGCP plants as the manuals and instructions for the machines are written in Chinese characters.

GMA News Online has reached out to NGCP Spokesperson Cynthia Alabanza for comment but has yet to reply as of posting time. 

The senator likewise also questioned NGCP’s shareholder’s agreement where they supposedly have the power to veto or junk the board resolution of majority shareholders.

“Sa madaling salita, magagawa ng Chinese shareholders ang lahat ng kanilang gusto pagdating sa pamamalakad ng NGCP. Ito ang dahilan kung bakit ngayon ay nagkakagewang-gewang ang ating energy situation,” said Tulfo.

(In short, Chinese shareholders can do what they want when it comes to NGCP operations. This is why our country's energy situation is unstable.)

Tulfo raised the same concern in a Senate panel hearing in September 2022.

Back then, NGCP president and CEO Anthony Almeda confirmed that State Grid of China has a 40% stake in NGCP, however, he said the controlling 60% still belongs to Filipino companies.

"I would like to assure the committee and our chairman that I am in control of the company and that the Chinese that are here or not here are all board directors and they do not manage the company. I do all the daily activities of our transmission. Rest assured to the committee that I am in control of the company as a Filipino,” the NGCP chief said during the 2022 hearing. 

Alleged Violations

Tulfo, meanwhile, shared to President Marcos the alleged violations of NGCP in its franchise, specifically the failure to follow timely development and connectivity in the main grid of energy power in various provinces amid recent power disruptions.

He also claimed that a big part of the earnings of NGCP goes to the shareholders and not on its system development.

With these, the lawmaker said he believes that there were enough reasons for the government to cancel the franchise of NGCP and proposed the return of the system's operation to the state-owned National Transmission Corporation.

In response to his concerns, Tulfo said the President agreed to his suggestions as long as they were for the benefit of Filipinos.

Tulfo has filed Senate Resolution no. 609 which seeks to investigate NGCP due to the possible national security threat and lapses in its operations.

In the said resolution, Tulfo cited reports indicating that the NGCP failed to perform its mandate to contract ancillary providers in accordance with the requirements of the Department of Energy (DOE).

Apart from Tulfo, Senator Sherwin Gatchalian, vice chairman of the Senate energy panel, also called for a congressional inquiry on the series of power transmission disturbances that hit parts of the country.

On May 8, 2023, the Luzon Grid was placed under red and yellow alerts by the NGCP due to the tripping of the Bolo-Masinloc 230 kilovolt (kV) Line 2 which resulted in rotational blackouts.

The said alerts also affected the transfer of  generated supply from the Luzon Grid to the Visayas Grid, resulting in the Visayas Grid also being placed under yellow alert.

On May 9, the Manila Electric Company (Meralco) also reported power supply cuts due to a "temporary system imbalance". —VAL, GMA Integrated News