| By Ma. Elisa P. Osorio (The Philippine Star) Updated December 01, 2010 12:00 AM |
MANILA, Philippines – The Philippine Chamber of Commerce and Industry (PCCI), the largest business organization in the country, warned that there must be an increase in power capacity to support economic growth.
In a meeting with energy and power players and industry stakeholders, the group noted that a percentage of gross domestic product (GDP) growth is accompanied by a 0.68 percent rise in power consumption. To meet projections of GDP growth, investments in power generation must be in step with priority to grow the economy and attract investments.
“Power has long surpassed labor as a ratio of production content. Power cost consumes about 15 percent to as much as 30 percent of a business and industry’s operating cost. If we are to factor in power consumption with the projected GDP of seven to eight percent in 2011 and onward, actual available capacity of power plants must increase by at least three percent,” PCCI president Francis Chua said.
As a result, PCCI is urgently advocating to the new owners of privatized generation plants in Luzon, which now stands at an aggregate of 13,319 MW to devote special and aggressive focus in the rehabilitation, maintenance and upgrading of their power plants to bridge the forecasted shortfall in the next two years.
In brief meetings where business and industry leaders articulated their concerns, the new government team assured they are engaged with players in the power sector and are reviewing the means to improve the regulatory framework and the market/supply structure to encourage more private sector investments in the power generation sector.
While attention is focused on the big islands, PCCI likewise strongly advocates that equal attention be given to the islands under the SPUG program to ensure that they do not suffer the same power shortfalls and power concerns because hundreds of the MSME members of PCCI are out there diligently operating and supporting the growth of the economy.
Meanwhile, the PCCI, through its local chambers, have taken active leadership in organizing and promoting energy efficiency and conservation programs in their areas. Its chambers in Palawan, Cotabato, Cebu, Gen. Santos, the island of Capiz have begun undertaking information and education campaigns on these programs.
In a meeting with energy and power players and industry stakeholders, the group noted that a percentage of gross domestic product (GDP) growth is accompanied by a 0.68 percent rise in power consumption. To meet projections of GDP growth, investments in power generation must be in step with priority to grow the economy and attract investments.
“Power has long surpassed labor as a ratio of production content. Power cost consumes about 15 percent to as much as 30 percent of a business and industry’s operating cost. If we are to factor in power consumption with the projected GDP of seven to eight percent in 2011 and onward, actual available capacity of power plants must increase by at least three percent,” PCCI president Francis Chua said.
As a result, PCCI is urgently advocating to the new owners of privatized generation plants in Luzon, which now stands at an aggregate of 13,319 MW to devote special and aggressive focus in the rehabilitation, maintenance and upgrading of their power plants to bridge the forecasted shortfall in the next two years.
In brief meetings where business and industry leaders articulated their concerns, the new government team assured they are engaged with players in the power sector and are reviewing the means to improve the regulatory framework and the market/supply structure to encourage more private sector investments in the power generation sector.
While attention is focused on the big islands, PCCI likewise strongly advocates that equal attention be given to the islands under the SPUG program to ensure that they do not suffer the same power shortfalls and power concerns because hundreds of the MSME members of PCCI are out there diligently operating and supporting the growth of the economy.
Meanwhile, the PCCI, through its local chambers, have taken active leadership in organizing and promoting energy efficiency and conservation programs in their areas. Its chambers in Palawan, Cotabato, Cebu, Gen. Santos, the island of Capiz have begun undertaking information and education campaigns on these programs.
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