Latest news with #NGCP
GMA Network
24-05-2025
- Business
- GMA Network
CA orders ERC's Dimalanta to inhibit from NGCP's rate reset proceedings
The Court of Appeals (CA) has ordered Energy Regulatory Commission (ERC) Chairperson Monalisa Dimalanta to inhibit herself from participating in the proceedings for the resolution of the rate reset application of National Grid Corporation of the Philippines (NGCP). In a 22-page decision dated April 30, 2025, the CA's Special 11th Division, acting on the petition for certiorari filed by NGCP, granted the grid operator's motion for inhibition, further ruling that Dimalanta "should have recused herself from further participating" in the 4th Regulatory Period (RP) Reset Application of the country's transmission grid operator. "We find that respondent gravely abused her discretion when she refused to inhibit from the proceedings a quo despite her evident bias and partiality against the petitioner," the CA decision stated. Sought for comment about the CA ruling, Dimalanta told GMA News Online, "I have yet to receive a copy of this." In seeking certiorari, the NGCP cited Dimalanta's series of public statements that demonstrated she already "prejudged" its 4th RP Reset Application even before the application had been filed "as evidenced by news articles citing that NGCP rates are expected to go down." Last April, the ERC announced that it has completed the fourth regulatory period rate reset for NGCP, allowing the grid operator to recover nearly P30 billion in under-recoveries. NGCP's 4th RP rate reset process was earlier described by the ERC as "unlike other periods" as it covers historical data on the company's expenditures and performance. The regular rate-reset process is usually a forward-looking exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period. The CA, meanwhile, said in its decision that "Dimalanta's declarations showed that she already had a preconceived result in mind, that is, the reduction of transmission charges and its inaction on the motions filed displayed bias and prejudice against the petitioner." The appellate court ruled that the ERC chief was fully aware that NGCP had yet to file its 4th RP Reset Application "when she made public statements, which proved that she had already prejudged the result of the proceedings." "Respondent could not be expected to render a fair judgment when she already has an outcome in mind, waiting only to be formalized after petitioner undergoes the charade of formal hearing. By issuing premature public statements, respondent somehow deprived petitioner of its right to a fair and impartial administrative process," a part of the decision read. In September 2022, the ERC issued the Rules for Setting Transmission Wheeling Rates, where NGCP was required to submit its expenditures under its 4th RP Reset covering the years 2016 to 2022. The following month, the CA ruling said, Dimalanta held a press briefing on the expected result of the reset process. NGCP filed its 4th RP Reset Application in December 2022. — VDV, GMA Integrated News
Reuters
28-01-2025
- Business
- Reuters
Philippines' wealth fund eyes Chinese firm's shares in grid operator
Summary Companies NGCP has 25-year concession as sole grid operator Mistrust in Philippines over Chinese firms as diplomatic ties sour Fund seeks some influence, not control, president says MANILA, Jan 28 (Reuters) - The Philippines' sovereign wealth fund would be interested in buying a Chinese state firm's stake in the Southeast Asian country's power transmission operator, its president said on Tuesday, as the government seeks to boost its oversight of the national power grid. The wealth fund, Maharlika Investment Corp, announced on Monday it would buy a 20% stake in the National Grid Corp of the Philippines, or NGCP, which in 2007 won a 25-year concession to be the Philippines' sole power transmission operator. Maharlika president and chief executive officer Rafael Consing Jr said the fund would also be interested in shares held by China State Grid Corp, but noted that taking control of NGCP was not the fund's motivation when it decided to buy into it. "The objective was not to take control, but rather just to be able to achieve some level of influence, and you achieve that by way of your board seats," Consing told a press conference. Some Philippine legislators have in recent years warned about potential security risks from a Chinese state firm's involvement in the power grid, as well as Chinese-backed players in the telecoms market. "If it becomes available, I think so yes," Consing said when asked about the Chinese stake, adding no approach had been made to the firm. China's State Grid Corp could not immediately be reached for comment. China's State Grid has a 40% stake in NGCP, and the remaining 60% is effectively controlled by Synergy Grid & Development Phils Inc. (SGP) ( opens new tab through a common corporate structure of the latter's two largest Filipino shareholders, tycoons Henry Sy Jr. and Roberto Coyiuto Jr. Maharlika's interest comes at a time of heated maritime rivalry and deepening mistrust of China, which has opposed some recent moves by the Philippines to boost its defence collaboration with ally the United States, including use of its Typhon missile system. NGCP is also currently the subject of a congressional probe into its compliance with franchise obligations and its ownership. With a 20% stake, Maharlika will be able to subscribe to preferred shares offered by SGP, which would give the wealth fund two seats each at NGCP and SGP. Consing said Maharlika's presence in NGCP would also allow the government to monitor external threats "if such threats indeed arise". Energy Secretary Raphael Lotilla at the same press conference said the fund's involvement in the grid would pave the way to more efficient power transmission, potentially lowering power costs. Maharlika will acquire the preferred shares for 19.7 billion pesos ($336.64 million), which will provide the fund with an annual 6.5% dividend yield for the first three years, Consing said. ($1 = 58.5200 Philippine pesos)
South China Morning Post
27-01-2025
- Business
- South China Morning Post
Philippines wealth fund invests in China-backed grid operator, despite tensions
The Philippines' sovereign wealth fund Maharlika Investment Corp is buying a 20 per cent stake in the operator of the country's power grid, the government said on Monday, a first major investment that tightens its grip on critical infrastructure. National Grid Corp of the Philippines holds a 25-year concession to run the country's sole power transmission operator since winning the contract in 2007. Amid escalating tensions between Manila and Beijing over disputes in the South China Sea, NGCP is currently the subject of a congressional investigation into its compliance with franchise obligations and its ownership, with China's State Grid Corp holding a 40 per cent stake. 'The maiden investment represents a vital opportunity for the government to regain greater influence over the nation's critical power infrastructure to ensure that every Filipino has access to reliable and affordable power,' Philippine President Ferdinand Marcos Jnr's office said in a statement without giving financial details. The deal allows Maharlika to subscribe to preferred shares offered by Synergy Grid & Development Philippines (SGP), which would give the wealth fund two seats each at NGCP and SGP. People hold signs during a protest at Mendiola in Manila on July 18, 2023 to condemn the passing into law of the Mahalika sovereign wealth fund. Photo: AFP SGP effectively controls 60 per cent of NGCP through a common corporate structure of the latter's two largest Filipino shareholders, tycoons Henry Sy Jnr and Roberto Coyiuto Jnr
Reuters
27-01-2025
- Business
- Reuters
Philippines wealth fund buys into China-backed national grid operator
MANILA, Jan 27 (Reuters) - The Philippines' sovereign wealth fund Maharlika Investment Corp is buying a 20% stake in the operator of the country's power grid, the government said on Monday, a first major investment that tightens its grip on critical infrastructure. National Grid Corp of the Philippines holds a 25-year concession to run the country's sole power transmission operator since winning the contract in 2007. Amid escalating tensions between Manila and Beijing over disputes in the South China Sea, NGCP is currently the subject of a congressional probe into its compliance with franchise obligations and its ownership, with China's State Grid Corp holding a 40% stake. "The maiden investment represents a vital opportunity for the government to regain greater influence over the nation's critical power infrastructure to ensure that every Filipino has access to reliable and affordable power," Philippine President Ferdinand Marcos Jr.'s office said in a statement without giving financial details. The deal allows Maharlika to subscribe to preferred shares offered by Synergy Grid & Development Philippines (SGP), which would give the wealth fund two seats each at NGCP and SGP. SGP effectively controls 60% of NGCP through a common corporate structure of the latter's two largest Filipino shareholders, tycoons Henry Sy Jr. and Roberto Coyiuto Jr. "Government investment in transmission would make additional capital available for NGCP to deploy in the pursuit of completing transmission projects on time," the Department of Energy (DOE) said in a separate statement. "Maharlika can pave the way for better coordination between the DOE and the NGCP to up the interconnection of our power grid across the archipelago," the DOE added. The DOE said 98% of NGCP projects between 2016 and 2024 were delayed, some by more than nine years.
