No quick solutions

It is no secret we have one of Southeast Asia’s most expensive power rates. In 2021, we were second only to Singapore in electricity rates. This has always been an issue with would-be investors who want to set up shop in the country. Not only are the rates expensive, but power is also unreliable. Power outages are common in all regions of the country. So, when an agency such as the National Grid Corp. of the Philippines (NGCP) has 72 unfinished projects all having to do with improving the power situation in the country, it is unacceptable.

Last Wednesday, officials of the NGCP received rebukes from senators who were not amused at the agency’s failure to finish so many projects and at the same time already collecting from the public. Now you would think this is unacceptable. But this is the Philippines. In fact, the Energy Regulatory Commission (ERC) came to its defense citing the Interim Maximum Annual Revenue allowing the NGCP to collect for projects that are unfinished. Ridiculous, right? As per the ERC itself, 72 NGCP projects, including six energy projects of national significance are delayed. But the people still pay for them. ERC chairperson Monalisa Dimalanta could only say this was “unfortunate”. Tell that to a less-than-minimum-wage earner who has to pay for every kilowatt of electricity.

But there’s more. Senator Risa Hontiveros pointed out the NGCP distributes hefty dividends to its shareholders. That’s the icing on their cake, at the expense of the public. I wonder just how much in salaries and bonuses these officials in the power sector make. This is a clear case of bureaucratic nonsense. This is why things cannot get done. There are so many layers before something can be implemented. We have the NGCP, ERC, the National Transmission Corp., DOE, and so on. All with their own little rules regarding the acquisition of funds from the people.

There are talks of privatizing the NGCP. But 40% of the NGCP is already owned by the State Grid Corp. of China (SGCC). Who else, right? It was revealed the NGCP could shut down power in most parts of the country should it choose to, at the same time saying China’s 40% ownership is not a security threat if you believe that. One can only shake one’s head. It is no wonder talks of going nuclear are being revived. We do have that white elephant in Bataan. But can it be refurbished to modern standards? Still remains to be seen, especially as it has to hurdle those vehemently against nuclear power. For sure, there are no quick solutions to our electricity woes, especially if the government itself has laws to protect itself from making things easy.