MIC: NGCP Investment Could Help Lower Power Costs

Maharlika Investment Corporation (MIC) President Rafael Consing Jr. announced that the company’s investment in the National Grid Corporation of the Philippines (NGCP) could support the government’s efforts to reduce electricity costs.

During a Palace press briefing, Consing stressed that energy security remains a top priority. He highlighted that MIC’s support for NGCP’s transmission grid infrastructure could play a key role in achieving this goal.

“We believe—and the Department of Energy (DOE) has conducted studies confirming this—that power drives progress. Through our investment, we aim to assist NGCP in successfully rolling out its transmission grid infrastructure,” Consing explained.

How the Investment Impacts Power Prices

Consing outlined how the NGCP’s improved infrastructure could lower electricity costs. “By ensuring the successful rollout of the transmission grid, more power suppliers can access the grid. With increased supply, as with any commodity, prices will eventually drop,” he said.

Energy Secretary Raphael Lotilla echoed this sentiment, noting that completed transmission projects can help reduce power prices by addressing constraints that drive them up.

MIC’s Stake in SGP and NGCP

On Monday, MIC secured a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), gaining two board seats in both SGP and NGCP. The investment totaled P19.7 billion, with each preferred share priced at P15. These shares guarantee a 6.5% dividend yield for the first three years.

Additionally, MIC remains open to acquiring shares of the State Grid Corporation of China in the Philippines’ power grid. While discussions have not yet taken place, Consing indicated interest if opportunities arise.

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

With this significant stake in the NGCP, MIC is poised to contribute to the country’s energy security and power cost reduction efforts.