PCCI seeks sustainable energy policy reforms

THE country needs innovative, clean and sustainable energy policies to help industries recover from the effects of the Covid-19 pandemic, according to business group Philippine Chamber of Commerce and Industry (PCCI).

PCCI President Benedicto Yujuico said during the group’s general membership meeting on Friday that the country has continued to have a constrained power supply at a time when it should have been abundant due to the shutdown of numerous industries during the pandemic-related lockdowns.

This is bad news for the economy’s recovery and the country’s objective of being a middle-income society by 2040, he emphasized, adding reliable and affordable power and energy are crucial to the post-Covid development agenda.

“These are essential to recovery, eradicating poverty, economic growth, resilience and long-term sustainability,” Yujuico pointed out.

While he noted that oil, coal and natural gas would continue to play important roles in Philippine economic development, the PCCI head stressed that experience shows during this pandemic that the country cannot rely anymore on imported fossil fuel-based energy resources.

Sustainable energy, better grid reliability, competitive prices and enhanced resilience to withstand natural catastrophes and crises, he remarked, are all critical components of national development objectives. The only option for putting the Philippines on the path to resilience and recovery is to transition to renewable energy supplies with proven and recognized 24/7 availability and no subsidy required.

“Rather than continuing to rely on fossil fuels, our country needs to embrace innovation in clean energy for a sustainable future. The clean energy transition is imperative to future-proof our businesses, our economy and to lift our people out of poverty while achieving our climate Sustainable Development Goals,” Yujuico explained.

He went on to say that the country is falling behind and that the private sector must step in to help. For example, the industry leader underscored that in Southeast Asia, Singapore ranked first with $817,000 in wealth per capita, followed by Malaysia with $167,000 in wealth per capita. Thailand came in third place with $78,000, followed by Indonesia and even Laos with $78,000 and $38,000, respectively. Only Vietnam and Cambodia were lower than the Philippines, which had a per capita income of $35,000, he continued.

“Our country, the second-richest country in the 60s, is now one of the poorest 50 years later. We cannot allow this to happen. We have to recover and we have to actually point our country toward our economic recovery,” the PCCI president added.

Finally, he said the Philippines’ power costs are among the highest in Southeast Asia, at P10 per kilowatt-hour, which is a major reason for the country’s poor foreign direct investment, particularly in manufacturing.

Yujuico recalled that a number of large manufacturing businesses that had shut down operations in China had come to the Philippines to assess the prospect of transferring their facility here, but had left disheartened due to the high cost of power.

“The reason is not just the cost of imported fossil fuels, but also the uncompetitive market structure, which allows power generators, distributors and others along the line to earn high profits at the expense of consumers and industry. This oligopolistic control of market structures must be stopped,” he said.