Press Release
March 3, 2010

Noynoy assails administration for power shortages

"The recent power outages all over the country are the result of deliberate foot-dragging by the Administration in implementing the EPIRA-mandated privatization of 70% of the power plants and IPP contracts owned by NAPOCOR.

"Without the 70% privatization target mandated by the EPIRA, open access cannot work. The lack of open access by power producers to eligible consumers discourages investors from building new plants.

"The EPIRA, which was passed into law in July 2001, mandated NAPOCOR to reach the 70% privatization level within 3 years or by 2004. To this day, NAPOCOR has not reached this target.

"Is the reason the fact that NAPOCOR imported all the coal used by coal plants? NAPOCOR was engaged in a practical monopoly on coal importation because of its tax-free status, similar to the rice import monopoly enjoyed by another government agency, the NFA."

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