Senator Risa Hontiveros on Friday said that the ongoing power instabilities plaguing consumers are a clear indication that foreign involvement in public utilities is a failure, contrary to the claims that permitting foreign ownership through charter change would be beneficial for both the economy and public services.

“Kahit na may dayuhang nagmamay-ari sa ating transmission grid, taun-taon na lang, kada papasok ang summer months, nakararanas pa rin tayo ng rotating blackouts sa Luzon at Visayas sa kabila ng mas mataas na presyo ng kuryente sa panahong ito,” she said.

“I’ve been consistently pointing out the connection between power industry problems and the proposed economic charter change in the Senate. Our ongoing power challenges clearly show how the industry, despite allowing significant foreign involvement for the past twenty years, has failed to meet expectations,” Hontiveros added.

The Senator’s remarks came during the recent Senate deliberations on Resolution of Both Houses No. 6, in which she underscored the chronic challenges faced by the power sector despite decades of foreign participation.

The Department of Energy’s recent warning about tight power supply risks during the upcoming El Niño-affected summer months has further amplified concerns. Senator Hontiveros, during the Senate hearing on RBH 6, raised pertinent questions to the National Economic and Development Authority (NEDA) and the Board of Investments (BOI) regarding the efficacy of opening up the power generation sector to foreign ownership.

“It’s crucial to question our economic agencies because we’re examining if an economic charter change is still needed, given significant foreign investment. For example, renewable energy investment alone reportedly totals $13.76 billion,” Hontiveros stressed.

Previous Senate inquiries led by Hontiveros identified various factors contributing to challenges in the power industry, including corporate cross-ownership, regulatory capture, grid mismanagement, and prioritization of business interests over public service delivery.

According to the Senator, what should be focused on is the concentration of ownership, especially in the power sector, in which it is increasingly evident. According to 2020 data, 11 families control 43% of generation capacity, 40% of captive connections, and 68% of utility sales.

“We need to pause and reconsider. The heavy ownership control by the same families in generation, transmission, and distribution likely stifles investment in power generation. Despite opening to foreigners over two decades ago, removing barriers hasn’t spurred new supplies, as these family incumbents preempt access to consumers,” she said.

Ultimately, Hontiveros emphasized the importance of allowing ordinary consumers to own generation and distribution assets in the power sector, aligning with the national economic goal outlined in Article XII of the Constitution. As a first step, cross-ownership has to be disallowed altogether in EPIRA.

“We must push for broader ownership and participation in its most possible manner among Filipinos to democratize access to the benefits and opportunities within the power industry. Ito ang mas dapat paggugulan ng oras, panahon, at resources, para masiguradong hindi lang interes ng iilan ang makikinabang, “ she concluded.