PH needs more capable energy firms – Poe
COAL-FIRED PLANT | Team Energy’s 735-megawatt coal-fired thermal power plant in Pagbilao, Quezon, supplies electricity to the Luzon grid. (INQUIRER FILE PHOTO)
MANILA, Philippines — The entry of capable private companies in the energy sector would help address the problems of power generation and distribution in the provinces and other underserved areas in the country, according to Sen. Grace Poe.
Poe, chair of the Senate public services committee, cited the case of MORE Electric and Power Corp., which secured a congressional franchise in 2019 as the lone energy utility in Iloilo City.
Since the company, owned by ports magnate Enrique Razon Jr., replaced Panay Electric Company, power distribution in Iloilo improved significantly, she said.
“If private [companies] will have more capitalization and be accountable to their shareholders, they will be able to provide better services,” Poe said on Wednesday at the Senate hearing on the dismal performance of Northern Davao Electric Cooperative Inc. (Nordeco).
“In Iloilo City, when the [franchise] of MORE Power was approved, they were able to improve the [energy distribution system],” she said.
Lower electricity rates
Roel Castro, president and chief executive officer of MORE Power, said they have so far spent about P1.5 billion to modernize and improve the power distribution facilities in Iloilo.
He said they were able to cut down power interruptions by 90 percent and lower electricity rates by installing new electric meters and posts and upgrading the power transformers and substations.
Nordeco has been the subject of various complaints both from its customers and the local government due to the frequent power outages in the Island Garden of Samal City.
During the hearing, Poe said Nordeco should not rely on power generator sets to resolve the energy crisis on the resort island but look for more sustainable ways to address the problem.
Davao del Norte Gov. Edwin Jubahib told the senators that Nordeco’s failure to provide a steady supply of electricity may drive away potential investors in their province.
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