Rep. Luistro warns: ‘Will you trust our power grid to our enemy in West PH Sea?’

BATANGAS 2nd District Rep. Gerville “Jinky Bitrics” Luistro has sounded the alarm over a looming national security threat posed by China’s involvement in the Philippine power grid, citing risks of foreign control and potential sabotage.

During last Thursday’s hearing of the House Committee on Legislative Franchises, Luistro questioned the reliance of the National Grid Corporation of the Philippines (NGCP) on Chinese technology and demanded immediate action to safeguard the country’s critical infrastructure.

“The apprehensions we are facing right now about having our national grid possibly controlled by a foreign national is right before our eyes. While it is just an apprehension, this is a question that needs to be answered with absolute certainty,” Luistro said.

Her warning stemmed from NGCP’s dependence on technology supplied by NARI Group Corporation, a Chinese state-owned enterprise that provides the hardware and software powering the grid’s Supervisory Control and Data Acquisition (SCADA) system.

SCADA serves as the nervous system of the country’s electricity network, controlling everything from power plants to transmission lines.

NARI, or Nanjing Automation Research Institute, a supplier of military-grade technology, maintains ties to NGCP, including the capability for remote access to the system.

Luistro tied the potential security risks of foreign control to China’s aggression in the West Philippine Sea, where Filipino fishermen and vessels continue to face harassment from Chinese forces.

“With our present situation in the West Philippine Sea, Mr. Chair, I hope the Filipino people are walking with me right now,” Luistro said, addressing Parañaque City 2nd District Rep. Gus Tambunting, chair of the House franchise panel.

She continued, “Exclusive economic zone, which is exclusive for Filipino citizens as confirmed by UNCLOS (United Nations Convention on the Law of the Sea) as confirmed by the international arbitration. And yet we continue to be harassed, threatened, and even injured by foreign nationals right in our sovereign land.”

Luistro questioned whether entrusting the country’s power grid to a foreign entity with such a track record was wise.

“Will you have the peace of mind na ipagkatiwala ang kaisa-isa mong national grid sa kaaway mo sa West Philippine Sea? Will you have the peace of mind that the national grid relies on these Chinese citizens who are maligning, harassing, and threatening our fellow Filipinos?” she asked.

Luistro added: “Will you have the peace of mind that no Filipinos understand this technology and only Chinese engineers do? Will you have the peace of mind that the technology can be controlled by somebody in Nanjing, leaving all of us helpless?”

The Batangas solon underscored the dangers of remote manipulation of the grid, which former National Transmission Corporation (TransCo) president Melvin Matibag confirmed had already occurred.

Matibag told the franchise committee that NARI had repaired the SCADA system remotely from China on multiple occasions.

Luistro’s fears were amplified by admissions from NGCP officials, including Chief Administrative Officer Paul Sagayo and Spokesperson Cynthia Alabanza, who acknowledged that NARI still provides maintenance services.

“All aspects of Filipinos’ lives rely on electricity—manufacturing, transportation, communication, you name it,” Luistro said. “What will happen to us if indeed this technology is under Chinese control, and they decide to sabotage our country?”

She also raised the chilling prospect of a deliberate shutdown, pointing to cyberattacks on power grids in other countries.

“I can be wrong. We can be wrong. But the question is, what if this apprehension is correct?” she said.

Luistro also criticized the failure of regulatory agencies to conduct comprehensive audits of NGCP’s operations, citing multiple directives from the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) that were never implemented.

“Since 2009, followed by 2010, and then 2016, and then 2017, there was never a system audit,” Luistro noted.

“The 2020 system audit that was shared to us by Atty. Dimalanta, for her own admission, did not rule out the apprehension that this system of NGCP cannot be controlled remotely,” she added.

ERC Chairperson Monalisa Dimalanta confirmed that NGCP’s reluctance hindered previous audit efforts.

“There was hesitation on the part of the NGCP to provide full access to its system,” Dimalanta said.

The Tambunting panel is conducting a motu proprio inquiry into NGCP’s performance, focusing on its compliance with its franchise and constitutional provisions on foreign ownership and management.

The NGCP, which operates the country’s power transmission grid, is 40% owned by the State Grid Corporation of China (SGCC), while Filipino tycoons Henry Sy Jr. and Robert Coyiuto Jr. own 60% through Synergy Grid and Development Philippines.

While the ownership structure appears compliant with the 60-40 rule, lawmakers questioned the presence of Chinese nationals in key executive and managerial roles.

The NGCP’s 2024 General Information Sheet lists Chinese national Zhu Guangchao as Chairman of the Board. Other Chinese nationals held critical positions, including Assistant Chief Technical Officer Liu Zhaoquiang and Chief Technical Officer Wen Bo.

Luistro urged the committee to subpoena NGCP’s shareholders’ agreement with the SGCC, inspect its system control facilities, and summon NARI representatives to testify.

“My point, Mr. Chair, to NGCP: Give us the concrete, tangible, apparent, and absolute reason to believe that our transmission grid is under Filipino control and never under Chinese control,” she said.