Senator Risa Hontiveros on Monday, February 5, said she doubts that introducing a third party supposedly to help accelerate the completion of delayed transmission projects of the National Grid Corporation of the Philippines (NGCP) would be effective in addressing the country’s concerns in the energy sector.
Hontiveros noted that previous Senate investigations found no compelling reasons for third-party involvement, and the Executive department’s proposition to consider this raises further questions.
“Kung hirap ang ERC (Energy Regulatory Commission) at DOE (Department of Energy) ngayon na i-regulate o pasunurin ang National Grid Corporation of the Philippines (NGCP), mas gagaan at huhusay kaya ang sistema kung bubuksan ito sa third parties (If the ERC and the DOE is having a hard time regulating or compelling NGCP to submit, would it make it easy if the system would be opened to third parties)?” Hontiveros asked.
“Wouldn't choosing another private entity repeat the same mistake? Solving one error with another is not a solution?” the senator said.
President Marcos earlier instructed the DOE and the ERC to explore the possibility of third-party involvement “at the pace required by the country’s power needs.”
Also in his recent speech, Marcos highlighted the importance of completing the Mindanao-Visayas Interconnection Project (MVIP) as guaranteed by the NGCP.
"We cannot afford to have another round of this costly interruption, not only in Panay Island but anywhere in the country," Marcos had said.
But Hontiveros asserted that introducing third parties could only potentially favor certain groups, eventually raise concerns about ties to the Maharlika Fund.
“In fact, the call for third-party developers is painful evidence of the failed privatization of the transmission sector and the NGCP experiment,” the senator argued.
She also pointed out NGCP had attributed the delays in transmission projects to the tedious procedures involved in acquiring right-of-way and permits.
However, despite having renowned domain rights, the NGCP notably starts acquiring the right-of-way only after regulatory approval, leading to late realization of projects.
“Segurista palagi ang mga pribadong negosyo tulad ng NGCP. Hindi muna gagastusan ang pagkuha ng right of way dahil may risk na hindi matuloy ang project (Private businesses like the NGCP are always cautious. They wouldn’t shell out funds when acquiring right of way because there is risk that the project may not materialize),” she said.
“The private sector's profit-first mentality delays public service, as they prioritize returns before fulfilling their service obligations,” Hontiveros stated.
The lawmaker said the government is still better equipped to acquire the right-of-way, allocate funds for property ownership and prioritize public welfare.
Thus, third-party transmission developers would not effectively address the current issues with NGCP, she reiterated.
“The modernization of our national transmission power grid is primarily anchored on public service and ensuring public welfare not business interest,” she said.
“Failed privatization policy in our power grid combined with very weak regulation will be a regular challenge in achieving an affordable and continuous electricity supply for every Filipino household,” the senator stressed.