President Aquino yesterday said he will ask Congress to grant him
emergency power to address the projected 300-megawatt (MW) power
shortage in the summer of 2015.
He announced this at the launching of the 420-MW Pagbilao III Power Plant project in Makati City yesterday.
“Let me assure you: We are keeping tab on all the factors involved,
and I am very much aware that government cannot be complacent in
addressing these issues,” Aquino said.
“After all, should there be a shortage, it is our people who will
bear the brunt of the burden – and no amount of excuses or explanations
will be able to temper the anger of the public,” he said.
Aquino said the Palace will formally ask Congress for a joint resolution, granting him the emergency power.
The joint resolution, he said, will authorize the national government
to contract an additional generating capacity to address the
300-megawatt projected deficit, and to have sufficient regulating
reserves equivalent to four percent of peak demand, for another 300
megawatts.
Responding to the President’s call, Speaker Feliciano “Sonny”
Belmonte Jr. and Oriental Mindoro Rep. Reynaldo Umali, chairman of the
House Committee on Energy, expressed the Lower Chamber’s readiness to
grant the President emergency powers to address the rapidly increasing
cost of production of electricity and the looming energy supply deficit.
“It should be clear what it’s for and what convinced him that it’s necessary after all,” Belmonte said.
He urged the President “to specify what kind of emergency powers” he
needs to address the projected energy crisis, maintaining that he is
“against carte blanche (full discretionary) power.”
Umali said the parameters must be clear and defined.
“Definitely, we will support but the parameters thereof need to be
defined as required under Section 71 (the Electric Power Crisis
Provision) of the EPIRA (Electric Power Industry Reform Act),” he said.
“We have to see the request of the executive department to better understand the coverage of emergency powers,” Umali said.
But Senior Deputy Minority Leader Neri Colmenares of Bayan Muna said
Aquino’s request for emergency powers means “sweetheart deals,
corruption, take or pay, and high electricity rates.”
“Apologists of President Aquino should not split hairs on this issue
and call a spade a spade. The President asked for emergency powers just
like Republic Act 7648 during Ramos’ time and the essence of this power
is to ask Congress for authority to enter into negotiated contracts for
additional generating capacity,” Colmenares stressed.
He pointed out that the Department of Energy “has not sufficiently
laid out the reason for emergency powers because as their own data show
there is enough power supply,” Colmenares added.
“We are one with the Filipino people in opposing emergency powers
because it would make life harder for everyone due to power rate hikes,”
Colmenares said.
Energy Secretary Carlos Jericho Petilla explained that the coverage
under the mandate of Section 71 is primarily by contracting of
additional capacity to be underwritten by the Power Sector Assets and
Liabilities Management Corporation (PSALM).
He said the additional 300-MW capacity will cover anticipated supply
shortfalls, primarily on the months of March to May next year. For
every 100-MW capacity, the amount of subsidy expected to be shelled out
by PSALM will be $20 million. Hence, for a 300-MW capacity, aggregate
subsidies will be $60 million and may reach $120 million if the contract
stretches to two years.
“It is for government to actually purchase additional capacity, it
does not only mean renting. It can also be to buy power from ILP
(interruptible load program),” Petilla said.
It was recalled that during the President’s State-of-the-Nation
Address (SONA) in July, President Aquino said he tasked Petilla to
coordinate with the Joint Congressional Power Commission, the Energy
Regulatory Commission (ERC), the power industry, and the consumers in
finding solutions to the looming energy problems.
“Let me assure our partners from the private sector: Government
intervention will be focused solely on addressing the projected
shortage. We have no plans of intervening to distort the market or
complicate the situation even further,” Aquino said.
“After all, we know that it is only through the government and the
private sector working together that the Philippine energy sector can
realize its full potential – that together, we can find solutions now,
and address existing issues once and for all. We need power to continue
our resurgence. We need projects like Pagbilao III to sustain the
momentum of the Philippines – to power our homes, our industries, and
our economy well into a brighter future,” he said.
The third unit of the Pagbilao Power Plant in Quezon province is
expected to be completed by November, 2017 and will bring an additional
400 megawatts in capacity in baseload power.
The construction of the project is also expected to create 2,000 jobs.
