CAGAYAN DE ORO CITY—Expect higher power rates in Mindanao next year when the government starts selling its power plants in the region.
President Benigno Aquino III said Wednesday he was inclined to eventually privatize the National Power Corp. (Napocor)-run power plants in Mindanao.
Speaking at a Philippine economic briefing held at the Mallberry hotel here, the President said that right now a provision in the Electric Power Industry Reform Act (EPIRA) prohibits Mindanao-based Napocor plants from being privatized.
"This produced a situation where we kept on selling electricity about P3 when the actual charge of generation was P5. That of course is contributory to debt that is inherited by PSALM (Power Sector Assets and Liabilities Management Corp.) and the number is daunting. It is P1 trillion,'' he told the economic briefing.
Mr. Aquino said the long-term solution was "not just to repair the existing power plants but more so to encourage the private sector to come in and support the demand in electricity that will come in because of the growth of Mindanao especially after we conclude the peace agreement.''
He said the EPIRA provision exempting Napocor plants in Mindanao from being privatized would expire this year.
"I beg for your understanding but it does not make sense to continue producing any product and selling it at a loss to be passed on to other people … and I’m sure you would want to do that,'' President Aquino said.
President Benigno Aquino III said Wednesday he was inclined to eventually privatize the National Power Corp. (Napocor)-run power plants in Mindanao.
Speaking at a Philippine economic briefing held at the Mallberry hotel here, the President said that right now a provision in the Electric Power Industry Reform Act (EPIRA) prohibits Mindanao-based Napocor plants from being privatized.
"This produced a situation where we kept on selling electricity about P3 when the actual charge of generation was P5. That of course is contributory to debt that is inherited by PSALM (Power Sector Assets and Liabilities Management Corp.) and the number is daunting. It is P1 trillion,'' he told the economic briefing.
Mr. Aquino said the long-term solution was "not just to repair the existing power plants but more so to encourage the private sector to come in and support the demand in electricity that will come in because of the growth of Mindanao especially after we conclude the peace agreement.''
He said the EPIRA provision exempting Napocor plants in Mindanao from being privatized would expire this year.
"I beg for your understanding but it does not make sense to continue producing any product and selling it at a loss to be passed on to other people … and I’m sure you would want to do that,'' President Aquino said.
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