A PARTY-LIST lawmaker has hit government energy officials’ over alleged incompetence in preventing the rolling brownouts that will jeopardize the country’s economic recovery and vaccination rollout.

Trade Union Congress of the Philippines (TUCP) Rep. Raymond Democrito Mendoza scored the officials of Department of Energy (DoE), the Energy Regulatory Commission (ERC), and the National Grid Corporation of the Philippines (NGCP) for showing alleged negligence in ensuring uninterrupted power supply.

“With power shortages rampant, the vaccinations in storage will go to waste because it is dependent on a seamless and secure cold storage chain. These agencies are risking the already-limited supply of vaccines that we have, as the responsibility for these brownouts lies squarely on their shoulders. TUCP is calling for a congressional investigation to look into the ultimate costs and accountabilities of these government agencies and the private power sector in this power failure that seems to recur every year. We are also looking into the abusive behavior of power players, such as the large power distribution utilities, who seem to be the ones setting the rules,” Mendoza explained.

“The situation is really alarming. We cannot have rolling blackouts at a time when the economy is recovering and the government’s National Employment Recovery Strategy (NERS) is dependent upon foreign investments and local businesses creating jobs,” Mendoza said.

“The implications are profound,” said Mendoza. “The National Employment Recovery Strategy of the Government is now fully compromised because no investor or locator will expand their operations here in the country without a stable supply of power. Without an adequate supply, emergency power solutions will be very expensive merchant power which will hit both businesses and consumers who are already feeling the brunt of an 8.7% unemployment figure for April of 2021. Further, the cost of goods and services will definitely increase as power costs are passed on to consumers. We fully expect a rise in food inflation and transport inflation. Inescapably, the specter of hunger will continue to grow.”

Mendoza added that the DoE, the ERC, and the NGCP should all be held accountable for allegedly being remissed in carrying out their duties and responsibilities.

Power reserves in the Luzon grid crashed to negative levels beginning June 1, resulting in rotating power interruptions across Metro Manila.

According to the NGCP, Luzon would remain on red alert status as there is not enough power supply to meet the demand.

“Here we go again. We are again facing another series of power shortages that seems to happen every administration. When the DoE Secretary says that his hands are tied because the power sector is deregulated and privatized, we say: Where is the DOE in ensuring that power is affordable and reliable? We remind Sec. [Alfonso] Cusi, under EPIRA (Electric Power Industry Reform Act), his mandate is to ensure affordable, reliable, and safe power. How did we get into this situation if he is performing his job?” TUCP Vice President Luis Corral asked.

“The ERC is failing to regulate the performance of powerplants, and it is clear that they need to do physical inspections of generation plants, transmission lines and distribution systems to ensure that they are performing reliably. What are the performance standards for power suppliers? How is it possible that billion peso industries do not conduct regular maintenance and maintain spare parts in order to ensure the reliability of their operations?” Corral explained.

“The leaders of these agencies have done little good. Some have spent more time playing politics than ensuring power supply,” Corral said. “As early as Congressional hearings in 2019, studies were already brought out warning of power shortages by 2020, and here we go again this 2021!”

He further added that the NGCP failed in ensuring an emergency power supply, which is part of their responsibilities in managing the power grid of the country.

Without a sufficient ancillary reserve, he said power distributors will end up buying from the Wholesale Electricity Spot Market (WESM) at much higher prices, or worse we will be left at the mercy of merchant power or expensive gensets.

Prices in the WESM spiked to a high of P37 per kWh, when previously the outlook provided by the Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) had price projections at P2.65 per kWh.

“If Secretary Cusi were performing his duties, we wouldn’t be facing 11 hours of red alert power shortage in NCR, and yellow alert status in other areas. The government should have forecasted the energy consumption requirements of the country, since we know or can approximate what the average population increase will be, what the annual GDP will be, and what the inflation rate will look like,” explained Corral.

Corral emphasized the need for President Duterte to go after power suppliers in the same way he sought accountability from the water concessionaires, Maynilad and Manila Water, because of onerous contracts unfavorable to MWSS, the water consumers, and Government.

“The DoE, the ERC, and the NGCP should be taken to task for sleeping on the job and failing to take responsibility for the harm their incompetence is doing to the Filipino people. These agencies are quick to wash their hands of responsibility and to accuse others of economic sabotage. I ask them, isn’t what they failed to do, the failure to secure power supply, also economic sabotage?” Questioned Corral.