Philippines mulls retaking control of national power grid amid concerns over Chinese firm’s ownership

A Filipino senator says the State Grid Corporation of China’s 40 per cent stake in the national grid may pose a security threat amid rising tensions in the South China Sea

Marcos Jnr has backed a proposal to ‘conduct a comprehensive study or hold hearings’ to know the real situation at the utility provider

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Workers erect a reinforcement grid of iron bars for a concrete wall of a power substation in Manila. Photo: AFP

Published: 4:30pm, 17 May 2023

Philippine President Ferdinand Marcos Jnr has said his government is willing to take back control of the national power grid after senators pushed for an investigation into the network’s partial Chinese ownership amid national security fears.

Raffy Tulfo, who chairs the senate committee on energy, told Marcos during a meeting that the State Grid Corporation of China’s 40 per cent stake in the National Grid Corporation of the Philippines (NGCP) may pose a security threat given the rising maritime tensions between Manila and Beijing in the disputed South China Sea.

Tulfo claimed China could access the national grid and disrupt it remotely, adding that the shareholder’s agreement allowed the Chinese firm to nix the board resolution of majority investors, including Filipino tycoons Henry Sy Jnr and Robert Coyiuto Jnr.

Philippine senator Raffy Tulfo. Photo: Facebook/Raffy Tulfo

“Chinese shareholders can do whatever they can in the operations of the NGCP. This is why our energy situation is dire,” the Philippine Daily Inquirer quoted the senator as saying.

Tulfo also said Marcos agreed with his proposal to “conduct a comprehensive study or hold hearings” to know the real situation at the utility provider.

The president’s office said in a statement that the lawmaker “wants to look into the security element of it, specifically if it’s really controlled by the Chinese”.

“If necessary, the government will take back control of the entity,” it added.