What happens next?

Perhaps one of the worst performances of our lawmakers and executives lies in not being able to effectively manage the country’s power and electricity distribution industry so that the country will have adequate supply at a price that is competitive, at the very least, with neighboring Asian countries.

The Electric Power Industry Reform Act of 2001 has fallen flat on its face in its promise to bring about a deregulated environment that would bring about lower electricity prices. The industry is now in the hands of the private sector, and yet the Philippines continues to have one of the highest electricity rates in the region.

And lately, alarms have been sounded of possible shortfalls in power generation, if the summer months of 2015 will impair water supply to run hydroelectric power plants and demand will rise beyond traditionally normal levels.

Uncertainties remain

While the debate to give the President emergency powers to forestall this vaunted power crisis had fizzled out with the Department of Energy pulling out its proposal, this does not remove the uncertainties of a power supply shortage, if and when an emergency arises.

Worse, after all the debates that dragged prominent think-tank organizations and economists/power specialists, not to mention kibitzing lawmakers and nationalists, there has been no clear consensus on what to do.

The country is still not assured that there will be adequate power supply within the short-term, and more importantly, for the long haul. And Filipinos continue to grope in the dark about when electricity prices will go down to ensure that its price is comparative in this global economy.

EPIRA review (sic)

One of the knee-jerk reactions of our Congress every time Meralco or any electricity distribution company seeks a rate hike, or whenever there is a serious power outage, is to call a review of the EPIRA. I’ve lost count of how many times our lawmakers have shouted for a review in the last 13 years.

But right after these loud voices reverberate through media channels, silence – and presumably inaction – follows. Clearly, a law that does not deliver the promised goods over such an extended period needs a serious review, and perhaps a major overhaul if its talked-about flaws are real.

The work of Congress is not just to pass new laws, but also to overhaul antiquated ones or to scrap those that have become irrelevant with the march of time. There are many of these deadwood laws that have to be given equal attention by our lawmakers.

While the focus of the 2001 power industry reform law was to sell and turn over most of the then government-owned generating assets to the private sector, a truly deregulated market environment did not happen – and will likely not happen if the current EPIRA stipulations are not improved.

Clearly, there is opportunity for independent power producers to grow in the Philippine market, just as long as they are given the right incentives and access to a more level playing field. Let’s learn from the law that deregulated the oil industry.

Regulatory short-sightedness

The other side of the problem, particularly that which deals with power supply and demand economics, highlights the inadequacies of the executive side, in this case, the Energy department including the Energy Regulatory Commission.

If the DOE is regarded as a captive regulatory agency in a supposedly deregulated power industry era, it could be called reactive or inutile in the performance of one of its most basic regulatory function: of ensuring adequate supply of electricity for the nation.

And it’s not as if the threat of power outages came only yesterday.

Even before PNoy was sworn into office, there had been repeated warnings of potential shortfalls in power supply as a result of not having enough power plants that can supply extra reserves especially when there are baseload power plants that are shut down, either forcibly or for maintenance.

So here we are, with just less than two years left before the current administration’s term ends, and still without an inkling of what is to be done in response to this critical problem.

Are our regulatory agencies’ officials and bureaucrats too swamped with the task of looking after the day-to-day management of their offices that they have failed to anticipate the problems that hog the bigger picture?

Doable plan

Now is the time to call for those special working groups that would dedicate themselves to solving specific issues and problems. Let the Makati Business Club, the Foundation for Economic Freedom, Matuwid na Singil sa Kuryente Consumer Alliance, and other interested stakeholder groups come together to come up with a doable plan.

Let’s do this not just to correct a power generation sector weakness, but also to enhance the reform of the electric power industry that was started in 2001. As has been pointed out by many over the years, the high power rates not just affects Filipino households, but also the country’s future.

Unless we are able to bring down electricity rates to more competitive levels compared to other countries’ in the region, we cannot hope to attract investments in more solid industries. The same is true with having a stable energy supply picture.

I’d like to be able to write one day in the future of how a group of Filipinos, inspired by a sense of duty to their country and fellow countrymen, were able to solve the sticky issues of high power rates and brownouts. Heck, if most countries had been able to do it, why shouldn’t we.

Champions League (PCCL) 2014 ?National Collegiate Championship

Three regional games are ongoing to determine the six teams that will compete in step-ladder knock-out games with the last standing team advancing to the Elite Eight stage.

The winner of the Luzon-Metro Manila Qualifying games will join the following teams already in the Elite Eight stage: UAAP champion National University Bulldogs, NCAA champion San Beda Red Lions, CESAFI champion Southwestern University Cobras, FEU Tamaraws, Arellano U Chiefs, U San Carlos Warriors and University of Visayas Green Lancers.

The NCR round-robin elimination games ends today, October 30, with St. Claire College Saints and Diliman College Blue Dragons as co-leaders. By virtue of its double championship achievement, CEU Pink Scorpions has advanced to the Champions League (PCCL) Luzon-Metro Manila Qualifying step-ladder knock-out games.

Two more regional games are scheduled during the first week of November to complete the line-up of the Luzon-Metro Manila Qualifying games. The South Luzon-Bicol games will be held at J.C. Lobredo Coliseum in Naga City on Nov. 3-4, 2014. The North-Central Luzon regional games are scheduled on Nov. 3-5, 2014, to be held at Lyceum North Western University Gym, Dagupan City.

Visit www.CollegiateChampionsLeague.net for more details about the nationwide competitions.    

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.