But new generating plants are delayed. Investors are reluctant to fund new generating plants unless it is certain the power they produce could be sold. If the reserve margins are thin, the whole economy is vulnerable to the costs of outages. They also want clearer rules on how much ancillary power supply arrangements the grid is required to maintain. One, 90 percent of the distribution utility’s power supply comes from bilateral contracts and power supply agreements – including those concluded with some of our newer plants.

Source: Philippine Star June 07, 2021 15:56 UTC