Senate Bill Proposes to Strip NGCP of System Operations to Boost National Security

In a move to enhance national security, Senator Sherwin Gatchalian introduced Senate Bill No. 2943 on January 22, 2025, aiming to remove the system operation function from the National Grid Corporation of the Philippines (NGCP). This legislative action seeks to amend Republic Act 9511, which originally granted NGCP the authority to operate, manage, and maintain the national electricity grid. Gatchalian’s proposal comes in response to concerns about foreign access to critical infrastructure, specifically citing a 2019 report that highlighted China’s State Grid Corporation’s 40% ownership in NGCP and the potential for remote deactivation of power by Beijing. The senator argues that the government should oversee the main grid’s system operations to safeguard national interests. Additionally, Gatchalian pointed out that NGCP’s focus on system operations has led to delays in transmission network projects, the costs of which are already being passed onto consumers through higher electricity bills. He also criticized NGCP for failing to comply with a Department of Energy directive to contract necessary ancillary services, which are crucial for uninterrupted power transmission. Under the proposed bill, third-party contractors could undertake the construction of transmission facilities not included in the Transmission Development Plan, but these would need to be handed over to NGCP for management and maintenance. The Department of Energy has expressed support for this bill, citing NGCP’s inability to effectively manage power outages across the country.