October 17, 2014 Print

For decades, the Philippines have been plagued by energy shortages and rolling blackouts. Although an ambitious reform act in 2001 intended to privatize the Philippine energy sector, inadequate legal framework and weak competition laws have marred the transition. 

Philippine president Benigno Aquino III has proposed “quick fixes” in anticipation of supply shortages next summer, a government solution that the Foundation for Economic Freedom (FEF) criticizes as expensive and burdensome to consumers in the long run.

FEF argues that the energy firms must be turned over fully to the private sector to allow for equal competition in energy production. “A short-term problem requires a short-term solution,” a spokesperson for FEF commented, but “the problem is projected to persist, [so] other long-term solutions must be found.” Click here for more information on the government’s proposal and FEF’s analysis of its impact.