MIC: Investment in NGCP can help bring down power prices

Maharlika Investment Corporation (MIC) president Rafael Consing Jr. said Tuesday that its investment in the National Grid Corporation of the Philippines (NGCP) could help in the government's aim of lowering power prices.

At a Palace press briefing, Consing emphasized that ''energy security sits at the top of our priorities,'' noting that the MIC can support the power grid operator in its transmission grid infrastructure.

''We believe, and a study in fact has been made by the DOE (Department of Energy), which points at the conclusion that power precedes progress. And what we want to be able to do is to pursue that to our investment and by being able to support NGCP in rolling out po iyong kanilang transmission grid infrastructure,'' Consing said.

In relation to lowering the price of electricity, Consing explained that ''the way NGCP can contribute to lower electricity is by ensuring that that rollout indeed happens.''

''Because once you have got 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 will come down,'' he said.

This was echoed by Energy Secretary Raphael Lotilla, saying that after a transmission project is finished, it may contribute to lowering prices because it addresses the constraints that often drive the power prices up.

On Monday, the MIC secured a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), giving it two board seats in the company and another two in the NGCP.

Consing said the total proceeds would be about P19.7 billion, representing 20% of the SGP with an effective price of P15 pesos per preferred share.

He added that the preferred share would guarantee a 6.5% dividend yield over the first three years. 

Earlier, MIC also said that it is not closing its doors to acquiring shares of the State Grid Corporation of China in the Philippines' power grid.

"If it becomes available, I think so, yes," Consing said.

"We have not spoken basically to the Chinese, we only saw this opportunity (at the) SGP level, we're not having discussions with the Chinese... with the State Grid of China at this point in time," Consing added.

According to the World Economic Forum (WEF), the State Grid Corporation of China, or State Grid, carries out government-authorized investments as a pilot state holding company. It ranks second on the Fortune Global 500, the WEF said.

—VAL, GMA Integrated News