Postponement of power crisis is no reason to rejoice

During a recent industry briefing, Department of Energy Secretary Angelo Reyes announced that brownout in Luzon may only happen next year as the electronics industry, the biggest power user in the island, continues to be pummelled by a lingering financial crisis.

He even considers it a positive side effect of the continuing economic crisis even as power supply in the Visayas and Mindanao has tightened with brownouts already occurring at increasing frequency.

How could he say that?

Trying to assuage fears of consumers of massive power outages by playing up the woes of the electronic sector is not a comforting stance given by no less than the top guy in charge of a Department which is supposed to nurture the power sector to health. Such a blasé attitude could spawn complacency when in fact the power industry should be on a war footing to avert a looming power crisis.

He did promise to give the list of prospective power investors, but couldn’t provide it at the right moment—which is the economic briefing itself. Such ill-preparedness smacks of the attitude the Department has shown in dealing with the problems in the power sector.

What we need is a strategic power development plan, not ad hoc knee-jerk reactions to problems as they tumble along. An important player and a responsible person of the industry should not express glee when a looming crisis was unexpectedly averted due to another crisis.

The Philippine Chamber of Commerce and Industry (PCCI)has already shown that brownouts had started in the Visayas and this year it will be Mindanao’s turn, according to its recent assessment of the prospects and challenges (read: problems) of the power sector. Next year, Luzon will be hard hit.

The Chamber estimates that to avert the crisis, there is an urgent need to build 3,000 MW of capacity in Luzon between now and next year, another 1,000 MW in the Visayas and 1,000 MW in Mindanao. Yet our Energy department chief cannot even provide the potential investors, or even rattle off potential investments from his head—which he should have easily done if he is in tune with the industry. Most likely, there is no such list.

But PCCI vice president Jose Alejandro reminded everyone that conventional base-load power plants with at least 300 MW could take at least three years to build, which is his polite way of saying that the power crisis can no longer be averted.

Our energy department head has apparently not imbibed the crisis mentality during the time of his previous boss, ex-President Fidel Ramos, when the latter had to compromise with high costs of BOT plants as a stopgap measure to a raging power crisis then.

It seems we are now resigned to debilitating power shortages starting this year.