Among the biggest disincentives to foreign investments particularly those involving manufacturing in the country has been the power supply. Inadequate, unreliable, and reported to be the second most expensive in the region after Japan, electricity supply has been a problem in the country since the first Aquino administration.
Three decades later, the problem persists. Luzon has suffered rotational power outages for several weeks now. Industry players say the problem will continue until early August due to the shutdown of several big power plants combined with rising demand as the economy gradually reopens amid the pandemic.
Senators conducting an inquiry into the issue have expressed exasperation over what they described as finger-pointing among industry stakeholders. The probe was conducted based on a resolution filed by Sen. Sherwin Gatchalian and a privilege speech of Sen. Manny Pacquiao, who urged Energy Secretary Alfonso Cusi to focus on the power problem instead of politics.
Cusi is blaming the National Grid Corp. of the Philippines for refusing to secure firm supply contracts. The NGCP, which operates the transmission network, and the Energy Regulatory Commission warn that this could result in a spike in electricity bills. Power generation companies, meanwhile, have denied accusations of deliberately shutting down their plants ostensibly for repairs and maintenance to push up electricity prices.
Senators want the Department of Energy to work out emergency measures together with the NGCP, power generators and the ERC to forestall the looming outages. At the same time, the government must consider long-term measures to ensure the country’s energy security. Sustainability advocates are calling for a shift to flexible power plants and a greater push for renewable energy. The power problem has plagued the country for decades. Surely the resolution cannot wait a few decades more.