Maharlika’s investment to NGCP expected to lower electricity costs

STOCK / FILES

MANILA, Philippines — The Maharlika Investment Corp.’s (MIC) investment in the National Grid Corporation of the Philippines (NGCP) is expected to lower electricity costs and stabilize electricity supply, according to MIC President Rafael Consing Jr.

In a Palace briefing on Tuesday, Consing was asked how the MIC’s acquisition of a 20-percent stake in the NGCP will aid Filipinos burdened by rising electricity costs.

READ: First investment: Gov’t, through Maharlika, gets 20% stake in NGCP

“So, kung titingnan po nila, iyong cost po ng kuryente, marami pong pinanggagalingan iyan ‘no. So, iyong transmission cost, isa po iyan sa mga cost na nagbubuo ng ating binabayarang kuryente per kilowatt hour,” he responded.

(So, if they look at it, the cost of electricity comes from many sources, right? The transmission cost is one of the components that make up the electricity we pay for per kilowatt-hour.)

“The way NGCP can contribute to lower electricity is by ensuring that that rollout indeed happens. Because once you have that transmission grid infrastructure being rolled out successfully, then you would have more power players that can in fact get onto the grid and provide supply to the grid. And, obviously, just like any commodity, as you’ve got more supply coming in, the present power will, at some point in time, come down,” Consing explained.

On Monday, President Ferdinand Marcos Jr. witnessed the signing of a memorandum of agreement between the MIC and Synergy Grid and Development Philippines Inc., which holds a 40 percent interest in NGCP.

The MIC is the manager of the country’s first sovereign wealth fund.

In the briefing, Consing was also asked why the MIC chose the NGCP as its first investment since its inception in July 2023.

“So, noong una pa po na na-setup, na-establish iyong Maharlika at na-appoint po ako, siguro nakita po ng lahat ang aming mga interviews na kung saan sinasabi ko na ang unang investment po namin ay magiging sa energy sector,” he said.

(From when the Maharlika was first set up [and] established, and I was appointed, I think everyone saw our interviews where I mentioned that our first investment would be in the energy sector.)

Consing further added “Napakaimportante po iyan; energy security sits at the top of our priorities. We believe, and a study in fact has been made by the DOE [Department of Energy], which points to the conclusion that power precedes progress.”

(That is very important—energy security sits at the top of our priorities. We believe, and in fact, a study conducted by the DOE [Department of Energy] supports the conclusion that power precedes progress.)