SENATE Minority Leader Frank Drilon on Sunday shot down a proposal floated by Energy Secretary Alfonso Cusi for the government to take back some of the key functions in the power sector and reduce those of the National Grid Corporation of the Philippines (NGCP) as a way of averting more disruptions.
“I don’t agree. I’ve long been with government, and I know how inefficient government is,” Drilon said in a radio interview at the weekend.
The Minority Leader’s reaction was sought on the advocacy pitched by Secretary Cusi at last week’s Senate Energy Committee hearing, for the State to take back some of the prerogatives of the NGCP, one of the energy players Cusi blamed for the unscheduled power outages in Luzon on May 31 till June 2.
NGCP President Anthony Almeda had complained to senators that they were being “bullied” by regulators for problems in the power sector that are beyond their control.
Officials of NGCP stressed that as they are just in charge of power transmission, they have no control over generation companies (Gencos) that do not live up to their commitments to provide power and to adhere to strict schedules for maintenance shutdowns.
Cusi wanted legislation to be crafted to amend NGCP’s franchise so it could take back the responsibility to prepare the Transmission Development Plan (TDP) and remove the delegation of the governmental power to expropriate.
The NGCP took over the management and operation of the power grid since 2009, but TransCo still owns the assets.
In dismissing Cusi’s proposal—among several options— to reduce the powers of NGCP and transfer these to the government, Drilon said, State players “often have no sense of accountability to the people.”
To avert more power outages in the future, Cusi on Thursday had asked lawmakers to allow his office to engage in power generation, grant authority to sanction violators, consider the use of nuclear energy and amend the franchise of the NGCP.
Cusi told the Senate Committee on Energy to help the Department of Energy (DOE) in allowing government to be involved in power generation business, albeit “limited” so as not to compete with power generation companies (gencos). “It’s meant to augment energy supply when needed,” Cusi said.
Senate Minority Leader said in a radio interview on Sunday, however, that what the situation simply requires is “closer supervision by the DOE.”
For instance, Drilon asked, “there is a shortage of supply, but the problem did not lie with distribution. Why is there
supply shortage?”
Drilon added: “As of now, we have data on how much will be needed five years from now,” adding: “Why not do something to encourage the private sector to put up generation units or power plants?”
The Senate Energy panel chief, Sen. Sherwin Gatchalian, had repeatedly blamed red tape for stifling investor interest in setting up more power plants.
At one point in last week’s hearing, Cusi was blaming NGCP for the delays in completing infrastructure to allow for excess power in Visayas and Mindanao to be brought to Luzon. Drilon suggested they should stop finger-pointing and just find a way to solve the supply problem.
“No more blame games. Let us find a way. To me, the solution is first, find out why the supply is short. Just one plant conking out and it inflicts grave effects on our economy. Where did the DOE fall short?”
The Senate Minority Leader said he does not agree with suggestions to “return and let government run the power industry.”
Drilon added, “To me, the system today needs to be fixed on how to ensure there will be enough reserve power supply. So that when a power plant breaks down, there is still enough supply.”
Government should study “what incentives [can be offered] that will attract the private sector to put up new power plants.” He, however, warned that “after five years, without forward planning it would be more difficult for us.”
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