MIF acquires 20% stake in NGCP for P19.7B

The Maharlika Investment Fund (MIF) made its first investment by acquiring a 20% stake in the National Grid Corporation of the Philippines (NGCP), according to the Department of Energy on January 28.

Rafael Consing Jr., president of the Maharlika Investment Corporation (MIC), said that this initial investment would support NGCP's expansion of transmission infrastructure projects, potentially lowering electricity prices over time.

Energy Secretary Raphael Lotilla noted that while better transmission infrastructure could indirectly lower costs, it is too early to determine specific reductions in consumer bills.

The MIC acquired the stake through a binding offer with Synergy Grid & Development Philippines (SGP) for P19.7 billion and will have two seats on the SGP board, aiming to influence NGCP's governance without being heavily involved in day-to-day operations.

Lotilla emphasized that the generation charge is currently a major driver of rising electricity costs, while transmission charges account for about 3.1% of expenses, highlighting the importance of NGCP's high-voltage lines in delivering power effectively.

The government remains optimistic that supporting NGCP’s infrastructure development will facilitate the transition to renewable energy and potentially reduce costs in the long term, though the exact timeline and impact on consumer bills remain uncertain.