The Department of Energy (DOE) welcomes the strong public attention, as well as the ensuing discussions on national security concerns surrounding the National Grid Corporation of the Philippines (NGCP), which have been brought forth by questions raised by some of our Senators during the agency’s budget plenary deliberations on 19 November 2019. 

Together with the National Transmission Corporation (TransCo), the DOE will actively take part in the Senate inquiries that will be scrutinizing these issues. We would like to emphasize that the matter at hand is not something new, and is, in fact, the very same points raised by Secretary Alfonso G. Cusi upon his assumption as head of the Department. 

Given that there are aspects in the existing Franchise Agreement with the NGCP that seem inimical to the best interests of the national government, and more importantly, the Filipino people, both the DOE and TransCo continue to call for, and are fully supportive of the Senate’s interest to take a closer look at the administrative, operational, and procedural structures existing within the NGCP. 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. These steps would facilitate the introduction of all necessary amendments to uphold our national security and the welfare of our citizens and consumers. 

We do not want to preempt the outcome of the Senate inquiries. In addition, we would also like to highlight that since matters of national security are involved, the proper protocol to be observed is to have our National Security Council (NSC) as the primary source of information. 

In the meantime, we would like to assure the public that the DOE is in close coordination not only with TransCo, but with all relevant government agencies, most especially the NSC, to ensure that all crucial data, as well as potential measures to be undertaken are reported to the President accordingly, for his information and guidance on the way forward. 

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