The Philippines used to suffer from insufficient electricity supply, poor power transmission, and pricey power rates. Fortunately, through 
the implementation of certain laws and policies, we have started to see some improvement in the country’s power sector.
Republic Act 9136 or the “Electric Power Industry Reform Act of 2001” was enacted to improve the electricity supply industry in the country. This law led to the restructuring of the different components of the power sector. Generation was privatized through the sale of generation assets.
The ownership of transmission assets were retained by government-owned TransCo, but the operation, maintenance, and expansion of the grid was privatized through a concession. The 25-year concession was awarded in 2007 to the consortium of the Monte Oro Grid Resources Corp. (MOGRC), Calaca High Power Corp. (CHPC), and the State Grid Corporation of China (SGCC), through a public bidding process, to operate the country’s power transmission system. This consortium is the privately-owned, National Grid Corporation of the Philippines (NGCP), which was also granted by the Congress a 50-year franchise to operate, maintain, and develop the state-owned power grid. NGCP’s nationwide operations include 21,000 circuit kilometers of lines, 20,000 transmission towers, and 140 substations.
The SGCC has the highest stake in the consortium, owning 40 percent of the company, while CHPC and MOGR own 30 percent each. The NGCP being majorly owned by a Chinese entity is a national security concern. It is alarming that our national power grid is effectively controlled by the Chinese. Last year, I filed House Resolution No. 280, a resolution calling for an investigation in aid of legislation to review the participation of foreigners in the ownership and operations of the NGCP, which is currently pending in the House Committee on Energy. It has been a year since this resolution was filed. I remember raising this concern in one of the committee hearings and during the plenary deliberations of the 2018 budget. The leadership still has to show decisive action in resolving this issue.
Apart from serious Constitutional issues, whether or not NGCP can discharge its express mandate is still on debate. For instance, the NGCP is required to expand the grid and to improve the country’s energy infrastructure. However, electricity is not available to numerous areas in the Philippines.
I am deeply concerned by the casual manner with which these issues are being handled. In the first instance, we are facing a serious national security threat by allowing a foreign entity to own majority of the NGCP. The leadership should engage in a continuing investigation to determine issues of ownership and control. If the outcome violates the Constitution, I entrust the leadership to require a change in corporate structure that abides by the Constitutional mandate.
I am unimpressed by the NGCP. The NGCP has not shown any significant improvement in providing electrical power to the entire Philippines. If nothing the serious issues remain without definite resolution, I will be forced to push for zero budget for the concerned agencies. In the circumstance, our vigilance is justified.