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Elevated benchmark rates may continue to boost bank profits

BANKS’ PROFITS may grow further this year as expectations of elevated benchmark rates until the second half may drive their interest income and as robust economic growth could boost loan demand, analysts said.

“If you’re talking about profitability, higher interest rates will be favorable for them,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

Banks could see their profits grow by 10-15% as economic growth could spur loan demand, Mr. Ravelas added.

As of end-September 2023, the Philippine banking industry’s net earnings climbed by 11.3% to P272.557 billion, driven by higher interest income and lower losses on financial assets, central bank data showed.

“Considering the prevailing high interest rate environment, the outlook for the banking sector appears favorable. Higher interest rates typically boost NIMs (net interest margins), positively impacting banks’ profitability,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Overall, a cautious but optimistic stance on the banking sector is advisable, given the current macroeconomic backdrop,” he added.

For her part, First Metro Investment Corp. Head of Research Cristina S. Ulang said bank earnings may have already peaked in 2023.

“For investors and traders, profit opportunity lies in share price volatility driven by positive news flow on easing credit conditions and resilient loan growth,” Ms. Ulang said in a Viber message.

“Borrowing would remain to be constrained and banks would also be challenged in profiting from [loans],” Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera said in a Viber message.

Elevated interest rates could also lead to higher non-performing loans (NPL), he added.

As of end-October 2023, the banking industry’s gross NPL ratio inched up to a five-month high of 3.44% in October from 3.4% in the previous month and 3.41% a year prior.

This was the highest bad loan ratio since 3.46% in May 2023.

The Bangko Sentral ng Pilipinas (BSP) last month kept its policy rate unchanged at a 16-year high of 6.5% for a second straight meeting.

The central bank raised benchmark interest rates by a cumulative 450 basis points from May 2022 to October 2023 to help bring down elevated inflation.

Even as the market expects the Philippine central bank to begin easing its policy stance within this year, BSP Governor Eli M. Remolona, Jr. last month said they are unlikely to cut rates in the coming months and is leaning towards keeping borrowing costs higher for longer until inflation is comfortably within their 2-4% annual target.

In the first 11 months of 2023, headline inflation averaged 6.2%, still above the BSP’s 6% forecast and 2-4% goal for the year, latest government data showed. — A.M.C. Sy

AI Elvis to make virtual reality comeback in London show

ELVIS PRESLEY —LAYEREDREALITY.COM

LONDON — Elvis Presley fans who missed out on seeing their hero when he was alive will be able to catch a glimpse of the King of Rock ‘n’ Roll perform later this year, thanks to virtual reality.

Elvis Evolution will use artificial intelligence (AI) and holographic projection, augmented reality and live theater to recreate events in Presley’s life and music, said Layered Reality, the immersive entertainment company developing the show.

“It’s going to be a joyous celebration of Elvis’s life; the man, the music, and his cultural legacy,” Layered Reality founder and chief executive Andrew McGuinness told Reuters.

Visitors will be taken on a journey from Tupelo, Mississippi, where Presley was born in 1935, to Memphis, Tennessee, home of Graceland, and Las Vegas.

“The crescendo of the experience is an AI performance by Elvis,” he said.

Layered Reality struck a deal with Authentic Brands Group, owner of the Elvis Presley estate, to develop Elvis Evolution.

The British company was given access to thousands of the star’s personal photos and hours of home-videos to create the new performances using AI, Mr. McGuinness said.

Global interest in the singer, widely acclaimed as the bestselling solo music artist of all time with more than 500 million records sold, is undimmed 46 years after he died aged 42.

Baz Luhrmann’s biography Elvis, released in 2022, created a new generation of fans, while Sofia Coppola’s 2023 Priscilla explored his complex relationship with his wife.

Mr. McGuinness said Elvis Evolution would appeal to both die-hard fans and those curious to discover more about the “Can’t Help Falling in Love” singer.

After London, Elvis Evolution will travel to cities including Las Vegas, Tokyo, and Berlin, he added. — Reuters

New year manpower planning

What’s in store for us in people management in 2024? What are the challenges that we should identify and manage as regards manpower needs?  — White Lady.

You can’t do manpower planning as a standalone program outside of HR planning and the organization’s annual strategic planning exercise, which is a must for every organization. However, it sounds to me that you are making do with what you have in terms of focus and time.

Manpower planning is a critical step in hiring new employees or transferring current ones to more suitable posts so the organization can maximize their contributions. This can’t be done without reference to recruitment, training, compensation, and career development needs.

Without manpower planning, HR may not be in a position to serve the needs of other departments. This means that HR must work closely with others to anticipate their future staffing needs, like nailing down the actual number of workers needed for a particular month of each year, if you want to be specific about it.

OVERSTAFFING, UNDERSTAFFING
No organization can afford to be overstaffed or understaffed. If an organization has more workers than needed, productivity falls — a problem difficult to detect unless management is actively looking.

The same thing can also happen with understaffing, which can cause service or product quality to deteriorate. Understaffing can also increase overtime costs and impose physical strain and stress on overworked employees.

To avoid this, manpower planning must be conducted objectively. HR must be at the forefront of defining worker competencies and the cost of training or other interventions to create the desired result.

For example, in January and February, what do we expect to happen? Off the top of my head — employees may elect to resign or management may initiate temporary rightsizing. Employees, after receiving their yearend bonuses and all their benefits (like exhausting accrued vacation leaves) are prone to moving to other employers.

On the other hand, temporary rightsizing happens when management decides to reduce staffing, including contractuals and agency workers during the first two or three months of the year, when demand for the company’s products or services is low.

Thus, it is a must to raise the following questions:

One, how many employees (both regular and contractual) are needed by the organization to meet its objectives every month, quarterly and on an annual basis?

Two, what jobs will these people need to fill? How many are in operations, sales and marketing, or other departments?

Three, what knowledge, attitudes, skills and habits will new hires and transferees be required to possess?

Four, can we promote people from within rather than hire outsiders? If that’s possible, how do you intend to make it happen?

Five, if you intend on sourcing from a manpower agency, what’s a reasonable ratio to maintain between contractual and regular employees, if only to avoid legal complications?

Six, if you intend to ask agency workers to become part of your regular workforce, how do you intend to assess them?

Seven, what kind of training would you need to offer to minimize the skills gap? If defined, who among your senior employees can train people?

These are some of the basic questions you must explore. The critical questions vary with organizations, depending on their culture, industry positioning, market power and other demands of a competitive environment.

FORECASTING
In conclusion, manpower planning boils down to forecasting, except that it’s not an exact science. Like weather forecasting, it is subject to many uncertainties and inaccuracies. That’s why an HR person needs judgment, supported by input from department managers who know the ins and outs of their staffing requirements.

However, an HR person should be cautious about relying too much on the ideas of these department managers, who could be engaging in empire building. They may hold the mistaken belief that having more employees ensure quality and productivity.

If you want to test this proposition, try computing that department’s turnover rate. You’ll soon discover the truth about every manager’s claims.

 

Bring Rey Elbo’s leadership program called Superior Subordinate Supervision to your team. For details or other workplace questions, chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

Reaching for happiness

LESLY JUAREZ-UNSPLASH

“Follow your bliss and the universe will open doors for you where there were only walls.” — Joseph Campbell.

Happiness is abstract. It means different things to many individuals. It is a state of being, a fleeting emotion, a decision, a sense of balance between joy and despair, somewhere between ecstasy and delight. It could be the absence of pain, relief from pressure, or healing from illness.

The philosopher Lao Tzu once wrote, “By letting it go all gets done. The world is won by those who let it go. But when you try and try, the world is beyond winning.”

To be happy, we should change our attitude towards life, relationships, people, and, most importantly, oneself. It may be very difficult to struggle with ego and pride, but it is worth trying.

Here are some thoughts and quotes about giving up — both negative and positive.

We often want to be right — even at the risk of ending a great relationship or causing stress and pain.

Give up the need to be right. It seems that, in the long term, being kind is better than being right.

Give up the need for control. We should learn to allow people around us and things to go their own way.

Give up on blame. Blaming is passing the buck. We should not blame others for what we have, what we don’t have; for what we feel or don’t feel.

Give up on self-defeating self-talk. We must erase the negative, toxic, self-defeating mindset.

Eckhart Tolle wrote, “The mind is a superb instrument if used rightly. If used wrongly, however, it becomes very destructive.”

Give up your limiting beliefs. Spread your wings and soar! A belief is an idea that holds the mind.

Give up complaining. The power of positive thinking is essential. We must practice it daily.

Give up on criticism.

Give up on the need to impress others.

Give up your resistance to change. Change helps one to move forward from one point to another. Sometimes, sudden change may seem negative. It is a matter of knowing how to deal with it and how to accept it. One can learn how to make it positive.

Give up labels. Stop labeling people, things, and events that you don’t understand as being weird or different by opening your mind, little by little. The mind only works when it is open.

Wayne Dyer wrote, “The highest form of ignorance is when you reject something you don’t know anything about.”

Give up your fears. Fear is just an illusion.

US President Franklin D. Roosevelt once said, “The only thing we should fear is fear itself.”

Give up your excuses.

Give up the past. The past may appear much better than the present. (Nostalgia colors it somehow.) The future is worrisome. We have only the present moment and we should enjoy life. “Life is a journey, not a destination.”

Give up attachment. It is important to know how to detach oneself from material things, possessions. One can like a certain lifestyle level and enjoy some luxuries. But these pleasures are fleeting. They do not and cannot last forever. One could lose them all in an instant. A sudden economic downturn, a tragedy, a disaster.

One should be willing to let go. Then one can feel serene, tolerant, and attain understanding. It would be on a higher level.

Give up living your life according to other people’s expectations. Many individuals live a life that is not theirs — it is pretentious — instead of listening to their inner voice. It is not worth trying to please everybody because it makes one lose control over life.

We have only one life. We should own it and live it without the distractions and pressure of other people’s opinions.

It is time to take responsibility for our actions. That is how we become true to ourselves. Then one can attain a measure of happiness and contentment.

Happy new year to all!

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Metro Retail breaks ground for Dalaguete, Cebu branch

METRORETAIL.COM.PH

LISTED Metro Retail Stores Group, Inc. said it held groundbreaking ceremonies for a Metro Supermarket branch in Dalaguete town, Cebu as part of its expansion efforts.

In a regulatory filing on Thursday, Metro Retail said the soon-to-rise store in Dalaguete is expected to boost the town’s economic growth, with more job opportunities for the community.

The company and the local government of Dalaguete signed a partnership agreement for the upcoming Metro Supermarket branch.

“The vision of Metro Supermarket goes beyond providing goods and services,” Metro Retail President and Chief Operating Officer Manuel C. Alberto said in the statement. “It is a commitment to being a responsible corporate citizen, supporting local initiatives, and becoming an integral part of the fabric of our community.”

Metro Retail has 64 stores in Luzon and the Visayas consisting of various store formats such as Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.

Shares of Metro Retail fell by 0.78% or a centavo to P1.27 each at the close of trading. — Revin Mikhael D. Ochave

Financial technology trends in 2024 and beyond

As we embark on the unfolding chapters of 2024, the world of financial technology (fintech) continues its dynamic evolution. This year brings forth a tapestry of trends shaping the industry, with each thread weaving a narrative of digital innovation, regulatory adaptations, and changing consumer landscapes. Let’s delve into these transformative shifts, backed by real-world examples.

One trend is the growth of decentralized finance (DeFi). This continues to dominate the fintech landscape, with platforms like Aave and Compound gaining prominence. These decentralized financial hubs provide lending and borrowing services, enabling users to earn interest or borrow assets without relying on traditional banking systems. Notably, projects like Terra are contributing to financial inclusion by offering stablecoins pegged to local currencies in regions with limited access to traditional banking services. In the Philippines, platforms like BloomX are facilitating decentralized currency exchange, offering users the ability to trade digital assets without the need for traditional intermediaries.

Another is the rise of Central Bank Digital Currencies (CBDCs), which are not just theoretical concepts; they are actively shaping the financial landscape. China’s Digital Currency Electronic Payment (DCEP) stands out as a tangible example, with ongoing pilot programs across various cities showcasing the potential of a government-backed digital currency. Additionally, the Bahamas has successfully implemented the Sand Dollar, demonstrating the practical implementation of a fully operational CBDC. The Philippines is still in the exploratory phase, with the Bangko Sentral ng Pilipinas (BSP) expressing interest in studying the potential implementation of a digital currency.

Artificial intelligence (AI) and machine learning (ML) are another pivotal trend in reshaping financial services. Wealthfront, a robo-advisory platform, employs AI to provide personalized investment advice, highlighting the marriage of technology and finance for individual benefit. On the frontlines of fraud prevention, companies like Feedzai utilize AI for real-time detection, exemplifying the role of technology in safeguarding financial transactions. Coins.ph, a mobile wallet in the Philippines, utilizes AI for fraud detection, ensuring secure and seamless transactions for its users.

Not to be left behind is the continued evolution of contactless payments and digital wallets, which have become integral to our daily transactions. Apple Pay and Google Pay, among others, are now household names. These digital wallets leverage NFC technology for secure and convenient transactions, minimizing the need for physical cash. Biometric authentication, as seen in mobile banking apps like Samsung Pay, further enhances the security of digital payment solutions. GCash and Maya, widely used mobile wallets in the Philippines, facilitate cashless transactions, bill payments, and even investments, contributing to the growing adoption of digital financial services. The convenience and security offered by digital wallets align with the broader global trend.

Sustainable finance and ESG (Environmental, Social, and Governance) investing are likewise gaining traction, with fintech platforms like Aspiration and Clim8 Invest leading the charge. Aspiration offers sustainable banking and investment options, allowing users to align financial goals with environmental and social values. In Europe, Clim8 Invest focuses on sustainable investing, offering a platform that facilitates investments in companies committed to climate change mitigation and environmental sustainability. In the Philippines, fintech platforms like Investree are incorporating ESG criteria into their lending and investment processes, allowing users to make socially responsible financial decisions.

The ongoing growth in fintech comes with its cybersecurity challenges. Companies like Forter specialize in AI-driven fraud prevention solutions, providing advanced tools for the detection and prevention of online transaction fraud. Addressing regulatory compliance is OpenVASP, an open-source project focused on developing a framework for Virtual Asset Service Providers (VASPs) to comply with global regulations related to anti-money laundering (AML) and counter-terrorist financing (CTF). In the Philippines, financial institutions are investing in advanced cybersecurity measures, incorporating AI and ML to detect and prevent fraudulent activities.

In conclusion, the financial technology landscape in 2024 is marked by tangible developments and real-world applications. DeFi, CBDCs, AI, contactless payments, sustainable finance, and cybersecurity are not just concepts but forces actively shaping the way we manage and interact with our finances. Fintech’s journey is one of collaboration between traditional financial institutions and nimble startups, promising a future that is both transformative and inclusive.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chair of the Digital Transformation IT Governance Committee of FINEX Academy. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

Dan Levy shows more solemn side in Netflix film Good Grief

DANIEL LEVY, Ruth Negga, and Himesh Patel in Good Grief. —IMDB.COM

LOS ANGELES — Schitt’s Creek creator and four-time Emmy winner Dan Levy is showing off a more serious side to himself as part of a multiyear film and TV deal with the streaming giant Netflix.

The maiden production is the film Good Grief, which Mr. Levy wrote, directed, and stars in. It follows his character, Marc, whose life is turned upside down when his husband, Oliver, played by Luke Evans, dies suddenly in an accident.

Marc must reconstruct his life with the help of his two best friends, Thomas, played by Himesh Patel, and Sophie, portrayed by Ruth Negga.

The movie, which starts streaming on Netflix on Jan. 5, is a drama which Mr. Levy hopes his fans will connect with even though it is outside the comedic work for which he is known.

“I think it’s very rare to be given an opportunity to do something so different from what people know you to do and that takes a leap of faith from, in this case, from Netflix to greenlight something that’s so different,” Mr. Levy said.

He feels that actors often get type-cast and must stay in the genre people expect them to be, so he is grateful for the chance to do something personal to him.

Although lighthearted, the film shows how friendship can help through the process of mourning.

“I think there’s this fear … that sharing your fears or your sadness is a burden on your friendships, but I think that is the greatest act of love ultimately,” Mr. Levy said.

To create the friendship bond, he arranged for Patel, Negga, and himself to connect over several weeks before shooting, including doing an escape room together in London, which Mr. Levy said had “everyone’s skill sets just put on display.”

Whether it is comedy or drama, he wants people to see that his work resonates across genres.

“I cared very deeply about Schitt’s Creek and I think the common theme here is that both of these projects have a very large heartbeat to them, and I hope will mean something to people in very different ways,” he said.

Mr. Levy’s multiyear deal with Netflix began in 2021. — Reuters

Philippines seen to be the 23rd largest economy by 2038

The Philippines is projected to be the 23rd largest economy by 2038 based on the latest edition of the World Economic League Table by London-based think tank Center for Economics and Business Research (CEBR). The country’s current standing is a 10-place jump from its 2023 rank of 33rd out of 190 economies.

 

Philippines seen to be the 23<sup>rd</sup> largest economy by 2038

How PSEi member stocks performed — January 4, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, January 4, 2024.

Peso strengthens before Dec. inflation data release

BW FILE PHOTO

THE PESO rose further against the dollar on Thursday as Philippine inflation likely eased last month.

The local unit closed at P55.50 per dollar on Thursday, strengthening by seven centavos from its P55.57 finish on Wednesday, based on Bankers Association of the Philippines data.

The peso opened Thursday’s session steady at P55.75 against the dollar. Its intraday best was at P55.465, while it dropped to as low as P55.78 versus the greenback during the session.

Dollars exchanged dropped to $1.72 billion on Thursday from $1.88 billion on Wednesday.

The peso gained against the dollar on market expectations that headline inflation eased further in December, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Philippine Statistics Authority will release December consumer price index data on Friday.

A BusinessWorld poll conducted last week yielded a median estimate of 4% for December headline inflation, within the central bank’s 3.6-4.4% forecast and slower than 4.1% in November and 8.1% in December 2022.

If realized, December would be the first time that inflation was within the central bank’s 2-4% target and the slowest since the 3% print in February 2022.

This would bring the 2023 inflation average to 6%, matching the Bangko Sentral ng Pilipinas’ (BSP) baseline forecast.

The continued easing of inflation could prompt the BSP to cut rates within this year, Mr. Ricafort added.

BSP Governor Eli M. Remolona, Jr. said last month that the central bank will likely keep rates elevated until inflation is comfortably within its 2-4% goal.

The Monetary Board has raised borrowing costs by a cumulative 450 basis points (bps) from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

For Friday, Mr. Ricafort expects the peso to range from P56.40 to P55.60 per dollar. — AMCS

PSEi rebounds before December inflation data

BW FILE PHOTO

PHILIPPINE SHARES rebounded on Thursday amid expectations of better inflation data for December.

The Philippine Stock Exchange index (PSEi) gained 103.64 points or 1.59% to end at 6,602.52 on Thursday, while the broader all shares index rose 35.52 points or 1.02% to close at 3,485.76.

“This Thursday, the local market rose by 103.64 points to 6,602.52 on the back of hopes that headline inflation in the Philippines had further declined last December. Supporting the said hopes is the midpoint of the Bangko Sentral ng Pilipinas’ (BSP) 3.6-4.4% range forecast which is below the preceding month’s 4.1%,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

The Philippine Statistics Authority will release December consumer price index data on Friday.

A BusinessWorld poll last week yielded a median estimate of 4% for December headline inflation, within the BSP’s 3.6-4.4% forecast for the month. This is slightly slower than the 4.1% in November but significantly below the 8.1% in December 2022.

If realized, December could mark the first time that inflation met the central bank’s 2-4% target after 20 straight months. It would also be the slowest since the 3% print in February 2022.

This would bring the 2023 inflation average to 6%, matching the BSP’s baseline forecast.

“The index surged above the 6,600 level and reached its highest close in more than five months as investors positioned ahead of the release of the Philippine December inflation print on Friday,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet likewise said in a Viber message.

“The PSEi bucked the fall of most Asian markets as traders bought up local stocks on expectations that domestic headline inflation last month cooled to 4%, which is within the BSP’s target inflation range,” Mr. Colet added.

Asian shares fell on Thursday as traders dialed back bets of steep and early rate cuts this year, with the minutes of the US Federal Reserve’s last meeting providing few clues on when US cuts might start, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.17% and was headed for the third straight day of losses.

Back home, almost all sectoral indices ended higher on Thursday. Property increased by 78.36 points or 2.77% to 2,907.31; financials climbed by 30.76 points or 1.78% to 1,754.47; services rose by 25.86 points or 1.59% to 1,651.63; holding firms went up by 71.46 points or 1.13% to 6,360.48; and industrials added 33.14 points or 0.36% to end at 9,137.63. 

Meanwhile, mining and oil dropped by 77.40 points or 0.78% to 9,777.89. 

Value turnover climbed to P5.18 billion on Thursday with 461.64 million issues changing hands from the P3.11 billion with 182.7 million shares seen on Wednesday.

Advancers outnumbered decliners, 110 to 85, while 46 issues ended unchanged. 

Net foreign buying stood at P768.3 million on Thursday versus the P260.5 million in net selling seen the prior day. — R.M.D. Ochave with Reuters

ERC: Committee looking into Panay Island power outage

Line men fix an electric line in Payatas, Quezon City, March 13, 2022. Manila Electric Co. is implementing lower power rates this month. — PHILIPPINE STAR /MICHAEL VARCAS

THE Energy Regulatory Commission (ERC) said the Panay power outage has been referred to an interim grid management committee for investigation, adding that appropriate penalties will be imposed after the panel delivers its findings.

“After the investigation, if penalties are called for, then we will commence proper proceedings to allow the relevant parties to answer and, if answers are not acceptable, impose penalties,” ERC Chairperson Monalisa C. Dimalanta said in a Viber message.

The National Grid Corp. of the Philippines (NGCP) reported on Tuesday that multiple power plants tripped, including units of Panay Energy Development Corp. and Palm Concepcion Power Corp. (PCPC).

Due to the plant outages, some 452 megawatts (MW) became unavailable, causing the NGCP to raise a yellow alert on the Visayas grid.

The yellow alert was lifted at 9:01 p.m. on Tuesday.

According to an NGCP update on Thursday, some 244.6 MW of electricity is currently being generated by Panay power plants.

The Visayas grid will need about 300 MW to stabilize, and is awaiting the return of a 135-MW PCPC facility.

The plant is targeted to be synchronized with the grid between 10 p.m. and 12 midnight on Jan. 4.

Citing an initial report, Ms. Dimalanta said equipment failure at PCPC caused the plant to trip. Operators are waiting for the unit to cool down before it can be restarted.

MORE Electric and Power Corp., the sole electric distribution utility in Iloilo City, has been affected by the power disruption, as well as seven electric cooperatives on the island.

As of 2:30 p.m. on Thursday, almost 50% of MORE’s customers were still not receiving power, it said. The company has imposed rotational outages every three hours due to the insufficient power supply.

“We need to investigate this further because it is impossible that all plants just decided to go offline all at the same time, or that they all failed on their own at the same time,” Ms. Dimalanta said.

“There must be something that led to those serial consequences among the generation plants,” she added.

Ms. Dimalanta said there should have been systems in place to prevent such occurrences.

She said that NGCP can direct distribution utilities to drop load to reduce demand to the level of available supply, thereby stabilizing the system.

“The system operator also controls the dispatch of plants so it could have initiated measures also on that end,” she said.

“We are reviewing whether these measures were undertaken and whether they were enough, or if anything else can be improved,” she added.

The NGCP has said that load restoration will be done “conservatively, by matching loads to restored generation, to prevent repeated voltage failure.”

“The people must understand that we can only transmit power, we do not generate power,” it said in a statement on Wednesday.

Legislators have called on the NGCP and the Department of Energy (DoE) to look into the Western Visayas outages.

“The DoE and the NGCP must understand the gravity of this situation and act decisively to resolve it,” Senate President Juan Miguel F. Zubiri said in a statement. “They should get their acts together immediately.”

He said constant power interruptions hamper the livelihoods and the delivery of basic services to the region’s citizens.

Mr. Zubiri called on the DoE and NGCP to be transparent in implementing measures to address the outages.

Party-list Rep. France L. Castro called on the NGCP to take accountability for the blackouts that have left some parts of Panay without electricity since Jan. 2.

In a statement, she also called on MORE Electric and Power Corp., which supplies power to Iloilo City, to improve its coordination with the electric system grid operators.

“Does (MORE Power) even have a system to help protect the grid from collapsing, like a load dropping mechanism?” Ms. Castro said.

Senate Majority Floor Leader Joel J. Villanueva said the government needs a short-term and long-term strategy for dealing with power disruptions, include ensuring that power plants are properly maintained.

“We also need to continue exploring other sources of renewable energy such as wind and solar to keep up with the DoE’s goal of a power generation mix target of 35% by 2030,” he said in a statement.

Citing DoE data, Mr. Villanueva said about half of the power plants in the Philippines are at least 20 years old.

“The situation is no longer tolerable, and the DoE and the NGCP must urgently address this issue before irreparable damage is done to our communities,” Mr. Zubiri said. — Sheldeen Joy Talavera and John Victor D. Ordoñez

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