Senator Risa Hontiveros on Monday expressed grave concerns over the proposal to involve third parties in the construction of power transmission projects.
Hontiveros warned that such a move might only serve vested interests rather than the public welfare.
The senator raised the warning after President Ferdinand Marcos Jr. instructed the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to explore the possibility of third-party involvement to expedite the delayed transmission projects.
She noted that previous Senate investigations found no compelling reasons for third-party involvement, and the Executive’s proposition raises further questions.
If the ERC and DOE found it hard to regulate the National Grid Corporation of the Philippines (NGCP), will third party involvement improve the system? she asked.
Hontiveros also asserted that introducing third parties could only potentially favor certain groups, raising 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,” she said.
The NGCP attributed the delays in the transmission projects to alleged tedious
procedures involved in acquiring right-of-way and permits.
Hontiveros noted however, that despite having eminent domain rights, the NGCP, as a private business, starts acquiring the right-of-way only after regulatory approval.
This leads to late realization that approved projects face opposition from property owners, causing such delays.
“The private sector’s profit-first mentality delays public service, as they prioritize returns before fulfilling their service obligations,” Hontiveros said.
The NGCP only proves that the private sector plan is limited and does not address the urgent requirements for timely power grid development, security, and reliability. Hontiveros noted.
“Wouldn’t choosing another private entity repeat the same mistake? Solving one error with another is not a solution?” she added.
Hontiveros emphasized that the government is better equipped to acquire the right-of-way, allocate funds for property ownership, and prioritize public welfare anchored on public accountability. Hence, third-party transmission developers would not effectively address the current issues with NGCP.
“The modernization of our national transmission power grid is primarily anchored on public service and ensuring public welfare, not business interest. 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,” Hontiveros added.