Power firms told to shape up

DAVAO CITY, Philippines – Incoming president Rodrigo Duterte warned power companies to “shape up” or face competition from foreign firms amid complaints of high electricity costs.

Duterte said consumers would be burdened with high costs if players in the power industry fail to deliver reliable service.

“I told you before, shape up because if you don’t the public will suffer. If (the problems) remain unaddressed, I will let everyone (foreign companies) enter the industry,” he said in a press briefing late Wednesday.

“If they want to put up power plant, I will let them come here,” he added.

Duterte said he is ready to amend the law to allow the entry of foreign players and to promote competition in the industry.

In earlier interviews, Duterte said he is open to amendments to the economic provisions of the 1987 Constitution to relax restrictions on foreign ownership. He said the amendment would help the country lure more investments.

Under the Constitution, foreign ownership in some industries, including utilities, cannot exceed 40 percent.

The Philippines has been a laggard in the region in terms of foreign direct investments (FDI).

The country recorded $6.2 billion in FDI inflows in 2014, lower than Singapore’s $67.52 billion, Indonesia’s $22.58 billion, Thailand’s $12.57 billion, Malaysia’s $10.79 billion and Vietnam’s $9.2 billion.