House of Representatives (Ellson Quismorio/ MANILA BULLETIN) 

National Grid Corporation of the Philippines (NGCP) Vice Chairman Henry Sy Jr., through another high-ranking official of the transmission company, has insisted that the Chinese do not control the local power grid.

Sy was invited to the House Committee on Legislative Franchises hearing on Thursday, Jan. 23 on the NGCP's operating franchise, which had been undergoing scrutiny.

Attending in his stead was NGCP President and Chief Executive Officer (CEO) Anthony Almeda, who read his prepared speech before the congressmen. 

"Mr. Sy intended to attend today's proceedings after his prescheduled morning appointment with the embassy. However he was unfortunately held up and cannot make it to Congress on time. He sends his sincere apologies," Almeda told the panel chaired by Parañaque City 2nd district Rep. Gus Tambunting. 

"The State Grid Corporation of China (SGCC) does not exercise control over the power grid [or] over NGCP," Almeda said, this time reading Sy's speech.

"The Chinese do not have control over the grid," he emphasized, adding, "There is no proverbial single red button that can instantly turn off the grid."

Almeda continued by saying that SGCC's shareholding in NGCP--the privately-owned power grid operator--is consistent with the Philippine Constitution.

"Domestic corporations Monte Oro Grid Resources Corporation and Calaca High Power Corporation each hold 30 percent, or a total of 60 percent of the outstanding capital stock of NGCP, whereas SGCC only holds a minority share of 40 percent," he explained. 

On the matter of NGCP's partnership with a Chinese firm, Sy--again, through Almeda--clarified that SGCC was already on board and the shareholders agreement was already in place when he purchased his shares in 2010.

The "single red button" refers to the allegation that the Chinese can shut down the country's power grid, and that the Philippines won't be able to do anything about it.

"It is NGCP alone, through its Filipino directors and personnel, and not the Chinese, which has control over the System Operations," Sy said.

Sy also informed the Committee that NGCP's supervisory control and data acquisition (SCADA) system was a secure and stand-alone isolated system not connected to any other network or the Internet. This makes it safe from remote hacking.

Sy also underscored the need for stability, not just in the power grid, but also in supply, law, policy and regulation, for a more robust power industry.

"I strongly urge our DOE to look at the problem as a whole. The data is clear, 97 percent of the power interruptions from 2016 to 2023 was caused by problems in supply," Sy pointed out in his speech.

"We need stable, affordable baseload power. We need a comprehensive, aligned plan that considers the needs of all sectors. We are willing to be part of the solution, but transmission should not be the solution to everyone’s problems," he added.

Sy is the son of the late business tycoon Henry Sy Sr.