The recently acquired 20 percent stake by the Maharlika Investment Corporation (MIC) in the National Grid Corporation (NGCP), through a binding agreement with Synergy Grid Development Philippines (SGP) worth P19.7 billion is laudable and a welcome development, Wennie Sancho, president of the Alliance of Concerned Consumers in Electricity and Social Services (ACCESS), said in a statement.
Sancho said it is a significant step towards increasing government influence over the country’s power grid operation that will potentially impact the energy sector’s future development.
He further stressed that the acquisition is expected to bolster the nation’s energy security, safeguard against external threats, and lower risk of power outages which would be beneficial to the electricity consumers. This is a welcome development for ACCESS, in support of the government’s goal to ensure reliable, affordable and competitive energy. This investment could potentially lead to more efficient transmission which might result in lower electricity costs.
Moreover, the investment of MIC will safeguard the nation’s power supply from disruption, citing the need of the government to have a say in the NGCP decision-making process, amid allegations of Chinese influence because of the 40 percent share of the State Grid Corporation of China, Sancho said.
It would also pave the way for better coordination between the Department of Energy (DOE) and NGCP to help expand transmission connection on time and speed up the interconnection of the power grid across the archipelago, he said.
Government investment in transmission would make additional capital available for NGCP to deploy the completion of its projects on time. Delays in completing transmission projects can increase the risk of power outages but also drive up electricity prices that will cause significant damage to the economy, his statement added.*