Electricity shortage in PHL persists despite Epira–Bayan

business mirror

MONDAY, 13 JUNE 2011 20:59 PAUL ANTHONY A. ISLA / REPORTER

NOTWITHSTANDING the enactment of the Electric Power Industry Reform Act (Epira) of 2001, power supply in the country remains inadequate, even as government continues to encourage foreign and local investors to put up power plants in the country.

In a report furnished to mediamen, Bagong Alyansang Makabayan (Bayan), stressed that the Epira has not brought about and will not bring about stable electricity supply to the entire country.

Citing figures culled from the Department of Energy (DOE), Bayan pointed out that the total installed capacity in the country is 16,359 megawatts (MW) in 2010 from 13,380 MW in 2001. 

Of this, the total dependable capacity, the militant group, is 13,902 MW. Peak demand reached 10,231 MW in 2010. Bayan said DOE’s projections would need a total additional capacity of 16,550 MW onward to 2030, where committed plants will contribute 1,354 MW to this and an additional 4,215-MW indicative capacity has already been mapped out.

Under Epira, Bayan pointed out that all of these projected capacity are to be constructed by private independent power producers (IPPs). 

“We continue to read about impending power crises as electricity generation failed to keep up with demand despite the provisions of the law. Private investors and IPPs would only build and maintain a power plant if it remains economically viable and earn profits for them,” Bayan said. 

The group further noted that these investors can and will shut down operations as soon as the location becomes unprofitable. 

Bayan cited the instance when the Cebu Private Power Corp. issued threats it will shut down operations of its 65-MW plant due to financial constraints further aggravating the projected shortage in the Visayas. 

“Such moves make the development and industrialization of our country hostage to the whims and profit margins of the private industry players. These IPPs are mostly owned by big local power tycoons in partnership with foreign transnational corporations,” Bayan said.

Far from improving the country’s electric power independence by promoting indigenous energy sources, Bayan said Epira merely aggravated the exploitation and plunder of our energy resources by mostly foreign-owned transnational companies.

“After seeing its effects for one decade on everyone, neoliberal power reform has to be reversed, which is important since energy utilities are strategic in nature to the development of the country. If these industries are left to monopoly capital, whose interest is to recoup their investment and rake in profits—it will result in an unending increase in utility costs and our national interest will not be addressed,” Bayan said.