China: We have no control over Phl power network

China has denied allegations that its state-run grid operator State Grid Corp. of China (SGCC) has control over the Philippine power grid as authorities continue to call for a probe amid national security concerns.

In a statement, the Department of Energy (DOE) said it welcomes the strong public attention, as well as the ensuing discussions on national security concerns surrounding the National Grid Corp. of the Philippines (NGCP).

The DOE, along with the National Transmission Corp. (TransCo), will actively take part in the Senate inquiries that will be scrutinizing these issues.

According to the DOE, the national security issue is not something new as it had been raised by Secretary Alfonso Cusi when he assumed office.

“We consider the Senate hearings as a positive development towards the long overdue and much needed audit of NGCP, as well as the comprehensive reexamination of the franchise agreement, which is part of the presidential directive to review all government contracts that appear to be onerous,” the DOE said.

However, China’s Ministry of Foreign Affairs has vehemently denied accusations of having the capacity to control the Philippine power grid.

“The allegation of China’s control over the Philippines’ power grid or threat to the country’s national security is completely groundless. Besides, the Chinese business also actively fulfills its social responsibilities,” Foreign Ministry Spokesperson Geng Shuang said during a regular press conference of the ministry.

He said SGCC participated in the TransCo project as a cooperation partner to provide safe, efficient and high-quality electricity services.

The transmission facilities are now being operated, managed and maintained by Filipinos under NGCP, while SGCC only offers necessary technical support upon request, the Chinese official said.

SGCC has a 40 percent stake in NGCP, while the controlling 60 percent still belongs to Filipino companies Monte Oro Grid Resources Corp. and Calaca High Power Corp. with 30 percent each.

“The Philippines is China’s close and friendly neighbor, as well as an important partner. We support Chinese businesses’ pursuit of practical, win-win cooperation in the Philippines in accordance with laws and regulations,” Geng said.

“We hope certain individuals in the Philippines will look at cooperation with China in an open, objective and impartial manner. There is no need to worry about the sky falling or imagine trouble where there is none,” he said.

Sen. Sherwin Gatchalian — who chairs the Senate Committee on Energy — recently filed a resolution to probe the compliance of NGCP on its mandate to safeguard the grid and ensure continuous electricity supply.

He also called on the Joint Congressional Energy Commission (JCEC) to look into the operations of the country’s transmission line to verify whether Filipinos are in charge of NGCP’s day-to-day management.

JCEC, formerly the Joint Congressional Power Commission (JCPC), is the country’s primary watchdog in the power sector.

This followed an internal report prepared for lawmakers which revealed that China controls the Philippine power grid, thus raising national security concerns.

Meanwhile, NGCP president and chief executive officer Anthony Almeda had allayed fears that China’s grid operator might have the capability to remotely shut down the Philippines’ power infrastructure since SGCC is only a technical adviser.