Maharlika eyes investing in NGCP

MANILA, Philippines — The Maharlika Investment Corp. (MIC), the vehicle for mobilizing and using the Philippines’ sovereign wealth fund, is eyeing to invest in the National Grid Corporation of the Philippines (NGCP), Malacañang said, as the power grid is drawing flak over the prolonged power outage in Panay Island.

A Palace statement quoted MIC president and chief executive officer Rafael Consing Jr. as saying that he is supportive of the proposal of House Speaker Martin Romualdez for the corporation to strategically invest in the power grid.

“The National Grid Corporation of the Philippines is the backbone of our nation’s power system, and its stability is inextricably linked to the Philippines’ economic and social well-being. I fully endorse Speaker Martin Romualdez’s proposal for the Maharlika Investment Corporation to strategically invest in NGCP,” Consing said in a statement released by the Presidential Communications Office (PCO) yesterday.

“This move holds immense potential to strengthen our energy sector and pave the way for a brighter future,” he added.

Consing said such an investment would allow MIC to become a “dedicated partner” in tackling the Philippines’ complex energy challenges.

According to him, the corporation could “leverage its unique financial resources and development expertise to accelerate critical infrastructure upgrades, promote renewable energy integration and improve overall grid efficiency.”

The partnership could also lead to lower energy costs and a more reliable and resilient grid, Consing added.

Romualdez has called on the MIC to invest in the NGCP to fund infrastructure upgrades and to help reduce electricity cost.

The lawmaker said such an involvement could result in improved efficiency, economic growth, enhanced energy security, support for renewable energy integration and increased accountability in the power grid’s operations.

Consing noted that the decision to invest in NGCP still requires careful consideration and thorough due diligence before moving forward.

“Transparency and accountability must be paramount throughout the process to ensure efficient use of public funds and maximum benefit for the nation. However, the potential rewards are well worth the exploration,” the MIC president said.

“Investing in NGCP through Maharlika is about investing in the Philippines’ future. It will be a bold step towards securing our energy independence, fueling economic prosperity and ensuring a brighter tomorrow for every Filipino,” he added.

The PCO said the MIC’s investment in the NGCP would “foster public-private partnerships in the energy sector that can set a valuable precedent for sustainable development across other critical infrastructure areas.”

Last Friday, President Marcos ordered the Energy Regulatory Commission (ERC) to complete the reset of NGCP’s rates “without further delay,” after a major power interruption hit Western Visayas last week.

He also directed the energy regulator to ensure that the NGCP is compliant with its statutory and regulatory obligations.

Marcos said while power has been restored, the blackout had caused a significant hardship to residents, crippled businesses, compromised livelihoods and endangered those in need of health care.

It was the second time a major blackout hit Panay Island in less than a year. A similar power outage happened in the island last April.

Marcos noted that the NGCP had committed to the timely completion of the Mindanao-Visayas and Panay-Negros-Cebu interconnections.

“However, we find ourselves in January 2024, far from the promised completion date of August 2023, and we are still, still hoping for the Mindanao-Visayas Interconnection by late January of 2024,” the Chief Executive said in a video message.

“Accountability lies with the NGCP. They are tasked with grid stability. Stability involves proactive responses to breakdowns and unexpected events, a duty that NGCP unfortunately has not fulfilled adequately,” he added.

The ERC has reported that electricity supply has been restored in Panay Island as the power plant in the region resumed operation last Friday.

Senate probe

Sen. Francis Escudero yesterday said the upcoming Senate investigation into the Panay power outage should tackle not just the liability of the NGCP, but also the lapses of the power generating plants, whose unscheduled shutdowns caused the grid instability.

In a dwIZ interview yesterday, Escudero cited the unscheduled power plant shutdown of the Palm Concepcion Power Corporation (PCPC), which he said took four days to resupply power instead of the routine four hours for maintenance shutdowns.

While Marcos – citing initial investigation – said the NGCP failed to stabilize the grid during the two-hour window, Escudero said the probe should not overlook the role of power plants such as PCPC and the Panay Energy Development Corporation (PEDC), whose unscheduled shutdown contributed to the blackout.

“We can’t just blame the NGCP for every blackout. Electricity has three elements: The generating company whose plants generate electricity; the transmission company, in this case, the NGCP, which delivers the electricity from power plants to distribution utilities; and the distribution utilities, which include electric cooperatives,” Escudero said.

He said that in the electricity bill, most of the charge goes to the power generating companies and distribution utilities, not to NGCP, which means the bulk of the responsibility should lie with the companies.

“Which leads me to my question: Why did we have a shortage and a blackout? Does the problem lie with the NGCP, or to the plants which shut down unannounced and unscheduled?” Escudero asked.

The senator said it was too early to call for the revocation of NGCP’s 50-year franchise to operate the country’s grid, as called upon by Sen. Raffy Tulfo.

Tulfo, who chairs the Senate energy committee, will resume his investigation on Jan. 10 on the country’s electricity woes, including the three-day Panay power shortage.

Escudero said the Department of Energy should be prepared to answer senators’ questions during Wednesday’s hearing, such as if the unscheduled maintenance shutdowns were the root cause of the blackout that marred the first New Year week in Panay and Guimaras. – Marc Jayson Cayabyab