As the Philippines under his administration is facing a power reserves deficit next year, President Benigno Aquino III is calling for changes in the Philippine power sector, which he described as prone to supply shortages.
In a speech before business leaders, Aquino said the business model of the Philippine power industry needs to be overhauled.
He admitted that the power sector's current setup is "not an ideal situation" and "does not engender more investments."
"Even before groundbreaking, plants have typically sold all of their outputs. I don't know of any other industry which has already sold its goods that have yet to be produced in a facility that has yet to be constructed," the President said at the closing ceremony of the Philippine Business Conference and Expo on Friday.
Energy officials earlier admitted a possible shortage in power reserves next summer.
Aquino has asked Congress to give him emergency powers to contract additional generating capacity to address the projected power deficit.
However, a joint draft resolution by the House of Representatives is giving the President mere authority to tap privately-owned generator sets as a way of releasing additional capacity for the Luzon grid next year.
In the same speech, Aquino encouraged business leaders to invest more in the power sector even without long-term power supply contracts.
"There are around three major entities in power today putting their money where their mouth is. They are investing in the sector even without long-term power supply agreements or power supply contracts," the President said.
"We hope more investors will follow suit and we will seek ways and means to encourage more to follow this track," he added. – Andreo C. Calonzo/VS, GMA News
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