MANILA, Philippines — The National Grid Corporation of the Philippines (NGCP) is under intense scrutiny from lawmakers over its Chinese minority stake, with some officials threatening franchise revocation if national security concerns are not addressed.

The House of Representatives has been conducting hearings on the issue, compelling NGCP to submit its shareholders’ agreement to determine the extent of foreign involvement in the country’s power transmission system. Concerns were raised about China’s 40% stake in NGCP, owned by the State Grid Corporation of China (SGCC), with particular focus on the appointment of a Chinese national as board chair.

Lawmakers have questioned why a foreign entity holds a key position in an infrastructure vital to national security. Some legislators argue that the setup presents a potential security risk, as the power grid plays a critical role in the country’s energy stability. Others, however, maintain that the firm operates within the bounds of Philippine law and remains under Filipino management.

NGCP: No Threat to National Security

NGCP officials have defended the firm’s structure, assuring the public that the company is Filipino-led and that Chinese shareholders do not have control over grid operations. NGCP President Anthony Almeda stated that despite SGCC’s stake, Filipino stakeholders maintain majority control, ensuring that the firm adheres to national interests.

“There is no so-called ‘switch’ that can shut down the country’s power grid remotely. NGCP’s operations remain in the hands of Filipinos,” Almeda emphasized.

Further, NGCP’s legal counsel stated that its operations comply with all existing laws and regulatory requirements. They assured lawmakers that foreign investors in the company do not have direct access to the day-to-day management of the grid.

Debate Over Franchise Revocation

Despite these assurances, some legislators are calling for the revocation of NGCP’s franchise, citing national security risks. House Speaker Martin Romualdez warned that if NGCP fails to provide transparency and full accountability, its franchise could be at stake.

A veteran lawmaker, however, argued that there is no need for a probe into NGCP’s ownership structure, asserting that it has complied with existing laws. The lawmaker pointed out that the Energy Regulatory Commission (ERC) and other government agencies oversee NGCP’s operations to ensure compliance with national policies.

Meanwhile, some lawmakers and energy experts have suggested that the government should regain full control of the power grid, removing Chinese influence altogether. They argue that energy security should be a matter of national sovereignty and that critical infrastructure should not be left in the hands of foreign entities.

Makakalikasan Nature Party Philippines Calls for Re-Nationalization

The Makakalikasan Nature Party Philippines has joined the call for the re-nationalization of NGCP, aligning with its broader agenda of reclaiming national resources for the Filipino people. Party President Roy Jerusalem Cabonegro criticized the privatization of the power grid, stating that “handing over critical infrastructure to private and foreign hands is a betrayal of national patrimony. The government must take decisive action to ensure energy sovereignty and prevent undue foreign influence.”

The party emphasized that a state-controlled energy system is essential for safeguarding national security and ensuring that electricity remains a public service rather than a profit-driven enterprise.

Public and Business Sector Reactions

The ongoing hearings have drawn mixed reactions from various sectors. Business groups have warned that any drastic move against NGCP could affect investor confidence in the country’s energy sector. They called for a balanced approach that ensures national security while maintaining a stable investment climate.

As the debate continues, the government faces a crucial decision on whether to overhaul NGCP’s ownership structure or retain the status quo while imposing stricter regulatory measures. Lawmakers are expected to conduct further hearings in the coming weeks to address the lingering concerns surrounding NGCP’s foreign involvement.