Infrastructure-oriented thinktank has said that the country is now headed into an ‘avoidable’ power crisis, as the National Grid of the Philippines declared an unprecedented red alert over the Luzon grid on Wednesday.
“We are headed into an ‘avoidable’ power crisis, if only government agencies acted swiftly in resolving pending proposals for new power facilities.”
This was the statement of Terry Ridon, Infrawatch PH convenor and former member of the House energy committee.
Ridon said at least five-thousand megawatts of proposed new power facilities continue to remain pending before government agencies, including the Energy Regulatory Commission.
“The new facilities should have been yesterday, if not for the regulatory delays experienced at the ERC and other agencies.”
Ridon said many existing plants are old and unreliable.
“Many of the plants undergoing forced and unplanned outages are those which should already undergo decommissioning, yet they continue to operate despite their inefficiencies.”
Ridon said allowing these plants to continue operating subjects the public to higher rates in the spot market each time these plants break down.
“With the red alert, we are expecting another surge of power hikes from the spot market.”
Ridon said government should take action to stop these price hikes.
“We have also observed that due to regulatory capture and uncertainties in energy policy, many new players are now unwilling to invest in new power facilities.”
Ridon said the delay in resolving proposals for at least 5000-MW of new power facilities in government agencies is one example of regulatory uncertainties. (PR)
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