Press Release
February 5, 2024

HONTIVEROS RAISES CONCERNS OVER THIRD-PARTY INVOLVEMENT IN ENERGY TRANSMISSION PROJECTS, CITING RISKS TO PUBLIC WELFARE

In response to the recent proposal to involve third parties in the construction of transmission projects within the energy sector, Senator Risa Hontiveros voiced concerns, emphasizing that such a move may only serve vested interests rather than the public welfare.

The Senator's remarks came after the President instructed the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to explore the possibility of third-party involvement to expedite delayed transmission projects.

"Previous Senate investigations found no compelling reasons for third-party involvement, and the Executive's proposition raises further questions. Kung hirap ang ERC at DOE ngayon na i-regulate o pasunurin ang National Grid Corporation of the Philippines, mas gagaan at huhusay kaya ang sistema kung bubuksan ito sa third parties?" she said.

She further asserted that introducing third parties could only potentially favor certain groups, raising concerns about ties to the Maharlika Fund.

"In fact, the call for third-party developers is painful evidence of the failed privatization of the transmission sector and the NGCP experiment," argued the Senator.

NGCP attributes the delays in transmission projects to the tedious procedures involved in acquiring right-of-way and permits. However, Hontiveros noted that despite having eminent domain rights, the NGCP, as a private business, starts acquiring the right-of-way only after regulatory approval. This leads to late realization that approved projects face opposition from property owners, causing such delays.

"Segurista palagi ang mga pribadong negosyo tulad ng NGCP. Hindi muna gagastusan ang pagkuha ng right of way dahil may risk na hindi matuloy ang project. The private sector's profit-first mentality delays public service, as they prioritize returns before fulfilling their service obligations," Hontiveros stated.

NGCP only proves that the private sector plan is limited and does not address the urgent requirements for timely power grid development, security, and reliability. "Wouldn't choosing another private entity repeat the same mistake? Solving one error with another is not a solution."

Hontiveros emphasized that the government is better equipped to acquire the right-of-way, allocate funds for property ownership, and prioritize public welfare anchored on public accountability. Hence, third-party transmission developers would not effectively address the current issues with NGCP.

"The modernization of our national transmission power grid is primarily anchored on public service and ensuring public welfare not business interest. Failed privatization policy in our power grid combined with very weak regulation will be a regular challenge in achieving an affordable and continuous electricity supply for every Filipino household," Hontiveros concluded.


HONTIVEROS, NABAHALA SA PANUKALANG THIRD-PARTY INVOLVEMENT SA ENERGY TRANSMISSION PROJECTS

Nababahala si Senadora Risa Hontiveros sa panukalang magpapasok ng third party sa pagtatayo ng transmission projects sa sektor ng enerhiya. Binigyang-diin din niya na iilan lang ang makikinabang dito at hindi ang kapakanan ng publiko.

Ito ang naging pahayag ng Senadora matapos na atasan ng Pangulo ang Department of Energy (DOE) at Energy Regulatory Commission (ERC) na pag-aralan ang posibilidad ng third-party involvement para mapabilis ang mga naantalang transmission projects.

"Previous Senate investigations found no compelling reasons for third-party involvement, and the Executive's proposition raises further questions. Kung hirap ang ERC at DOE ngayon na i-regulate o pasunurin ang National Grid Corporation of the Philippines, mas gagaan at huhusay kaya ang sistema kung bubuksan ito sa third parties?" ani Hontiveros.

Iginiit pa niya na maaari lamang mapaboran ang ilang mga grupo, na maaaring may koneksyon sa Maharlika Fund, kung magpapapasok ng third parties.

"In fact, the call for third-party developers is painful evidence of the failed privatization of the transmission sector and the NGCP experiment," ani Hontiveros.

Ayon sa NGCP, naaantala ang mga transmission projects dahil sa masalimuot na proseso sa pagkuha ng right-of-way at mga permit. Gayunpaman, binanggit ni Hontiveros na sa kabila ng pagkakaroon ng eminent domain rights ng NGCP, bilang isang pribadong negosyo, nagsisimula lang sila sa pagkuha ng right-of-way pagkatapos ng regulatory approval. Dahil dito, huli nang nalalaman na may pag-aalma mula sa mga may-ari ng ari-arian, na siyang nagdudulot ng pagkaantala.

"Segurista palagi ang mga pribadong negosyo tulad ng NGCP. Hindi muna gagastusan ang pagkuha ng right of way dahil may risk na hindi matuloy ang project. The private sector's profit-first mentality delays public service, as they prioritize returns before fulfilling their service obligations," ani Hontiveros.

Ang NGCP ay patunay na limitado at hindi kayang tugunan ng private sector plan ang mga kailangan para magkaroon ng seguridad at matatag na power grid. "Wouldn't choosing another private entity repeat the same mistake? Solving one error with another is not a solution."

Binigyang-diin ni Hontiveros na mas may kapasidad ang gobyerno para makuha ang right-of-way, maglaan ng pondo para sa property ownership, at unahin ang kapakanan ng publiko na nakaangkla sa public accountability.

"The modernization of our national transmission power grid is primarily anchored on public service and ensuring public welfare not business interest. Failed privatization policy in our power grid combined with very weak regulation will be a regular challenge in achieving an affordable and continuous electricity supply for every Filipino household," pagtatapos ni Hontiveros.

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