Mindanao's Power Woes: A Decade of Delays and Soaring Prices

Power Grid Delays in the Philippines: Mindanao Consumers Bear the Brunt The Philippines faces significant challenges in its efforts to connect its power grids across the Visayas and Mindanao regions. Years of delays in these projects have had a considerable impact, particularly on Mindanao, where consumers have seen a 30% increase in electricity costs. This issue is highlighted in a recent Rappler BrandRap video featuring an interview with Professor Rowaldo Del Mundo, associate dean of the College of Engineering at the University of the Philippines. Del Mundo points out that the lack of a Wholesale Electricity Spot Market (WESM) in Mindanao is a major contributor to this price surge. "Without the WESM," he explains, "electric cooperatives must sign contracts for their entire electricity supply, leading to what we call 'unutilized contracts' when demand is lower than anticipated." This means they pay for energy they don't use, which is passed on to consumers. The delays, according to Del Mundo, stem from various factors, including right-of-way issues and bureaucratic hurdles. He further notes that the impact of this has been felt for over a decade, with the 30% higher generation rate in Mindanao persisting for ten years, from 2015 to 2024. The government is working on solutions to address these delays and improve the efficiency of the power grid. The situation underscores the need for improved infrastructure planning and regulatory frameworks to ensure reliable and affordable electricity for all Filipinos.