Press Release
June 17, 2021

IMEE: POWER OUTAGES CAN'T BE ALLOWED TO MAR ECONOMY'S REOPENING

Senator Imee Marcos has warned that power outages in the short to long term will trip the country's economic recovery if the Department of Energy (DOE) and National Grid Corporation of the Philippines (NGCP) waste time pointing fingers than finding solutions.

"The DOE and NGCP should quit this blame game. As quarantines are eased, curfews are lifted, and vaccination is ramped up, businesses will be resuming operations for longer hours that demand more electricity. We also expect face-to-face classes and regular rail transport to gradually resume," Marcos said.

"Our reopening economy will not withstand prolonged blackouts, as those that occurred in the early 90's because energy solutions were ignored," Marcos added.

The Senate economic affairs committee chairman cited that power outages may continue this June and in coming months due to the ongoing preventive maintenance of power plants and the lack of new contracts for added energy capacity.

Marcos also pointed out that the power-generating capacity of the Malampaya gas field, which supplies 30% of Luzon's energy needs, is expected to run out in 2024.

"Is the NGCP trying to reduce costs by not contracting reserves, is there no power to contract, or are investors hesitating to build the necessary merchant plants because they do not expect to be contracted?" Marcos asked.

Although the DOE has promised to investigate if industry players deliberately caused the recent power shortages, Marcos said that "collusion would be difficult to prove under present guidelines."

Among the legislative solutions that Marcos has proposed is to amend Republic Act 10667, or the Philippine Competition Law.

"This will allow the Energy Regulatory Commission (ERC) and Philippine Competition Commission to better manage what ERC chief Agnes Devanadera called "pricing play" in the Wholesale Electricity Spot Market (WESM)," Marcos said.

Marcos explained that the WESM's secondary price cap, which is meant to protect consumers from the manipulation of electricity prices by power generation companies, "has been hit more than 400 times this year, compared to only three times in 2019."

"Another solution is to redefine power reserves, which at present is set at 4% of peak demand. This may need to be raised to help the system cope with increasing power supply demand and prevent more blackouts," Marcos added.

Marcos also called for the swift passage of an amended Foreign Investment Act when Senate sessions resume in late July, "which could lead to the exploration of urgent alternative to Malampaya, including green energy and nuclear power."

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(Tagalog version)

IMEE: SISIHAN NG DOE-NGCP 'MOVE ON' NA PARA MALUTAS ANG MGA BLACKOUT

Nagbabala si Senador Imee Marcos na hahadlangan ng panandalian at pangmatagalang blackout ang pagbangon ng ekonomiya ng ating bansa kung hindi matitigil ang sisihan ng Department of Energy (DOE) at ng National Grid Corporation of the Philippines (NGCP) at hindi sila makabuo ng mga solusyon.

"Tigilan na ng DOE at NGCP ang 'blame game' o sisihan. Habang lumuluwag ang mga quarantine, inaalis ang mga curfew, at parami na ang mga nababakunahan, ang mga negosyo ay magbubukas ng mas mahabang oras at mangangailangan ng mas malaking supply ng kuryente. Inaasahan din natin na unti-unti nang magbabalik ang face-to-face classes pati ang regular na operasyon ng MRT," ani Marcos.

"Ang nagbubukas na ekonomiya ay hindi kakayanin ang mga mahahabang blackout, tulad ng nangyari noong early 90's dahil dinedma lang ang mga solusyon sa krisis sa enerhiya," dagdag pa ni Marcos.

Tinukoy ni Marcos, chairman ng Senate economic affairs committee, ang mga blackout na posibleng magpatuloy ngayong Hunyo hanggang sa mga susunod na buwan dahil sa "preventive maintenance" ng mga planta ng kuryente at kawalan ng bagong kontrata para dagdagan ang kapasidad ng enerhiya.

Binanggit rin ni Marcos na inaasahan nang mauubos sa 2024 ang power-generating capacity ng Malampaya gas field, na nagsu-supply ng 30% ng kuryente sa Luzon.

" Tinatangka ba ng NGCP na magtipid sa gastusin sa pamamagitan ng hindi pangongontrata ng mga reserba ng kuryente, wala bang power supply na makontrata, o nag-aalangan ang mga investor na magtayo ng kinakailangang mga planta ng kuryente dahil hindi nila inaasahang kokontratahin sila?" tanong ni Marcos.

Bagamat nangako ang DOE na iimbestigahan ang industry players na naging sanhi ng blackout kamakaylan lang, sinabi ni Marcos na "ang sabwatan ay mahirap patunayan sa ilalim ng kasalukuyang guidelines."

Sa harap nito, kabilang sa solusyong isinusulong ni Marcos ang panukalang amyendahan ang Republic Act 10667, o ang Philippine Competition Law.

"Ito ang magbibigay-daan para mas mapangasiwaang mabuti ng Energy Regulatory Commission (ERC) at Philippine Competition Commission ang tinawag ni ERC chief Agnes Devanadera na "pricing play" o laro sa presyuhan sa Wholesale Electricity Spot Market (WESM)," ani Marcos.

Paliwanag ni Marcos, ang 'secondary price cap' ng WESM na layong protektahan ang mga konsyumer mula sa manipulasyon ng presyo ng kuryente ng mga power generation companies ay "tinamaan ng mahigit sa 400 beses sa taong ito, kumpara noong 2019 na tatlong beses lang."

"Isa pang solusyon ay baguhin o ayusin ang depinisyon ng reserbang kuryente, na sa ngayo'y nakatakda sa 4% ng 'peak demand' lamang. Ito'y kinakailangang itaas para makatulong na makaagapay sa pangangailangan ng kuryente at maiwasan ang mas maraming blackout," diin ni Marcos.

Inihirit rin ni Marcos ang mabilis na pagpasa ng amyenda sa Foreign Investment Act sa pagbabalik ng sesyon ng Senado sa Hulyo, upang "maging daan sa paghikayat ng mga alternatibo sa Malampaya, kabilang ang green energy at nuclear power."

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