MANILA, Philippines鈥揚resident Aquino now wants emergency powers to address a looming power shortage in Luzon next year.
In a speech during the launching of the Pagbilao III power plant project in Makati on Thursday, Aquino said he would seek a joint congressional resolution鈥攚hich will have the force of law鈥攕o the government could 鈥渃ontract鈥 additional generating capacity of around 600 megawatts.
鈥淭o be more efficient and impactful in our efforts, very soon, we will formally ask Congress for a joint resolution, that will authorize the national government to contract an additional generating capacity to address the 300-megawatt projected deficit, and, on top of that, to have sufficient regulating reserves equivalent to 4 percent of peak demand, for another 300 megawatts,鈥 he said.
Aquino sought to assure the private sector that 鈥済overnment intervention will be focused solely on addressing the projected shortage.鈥
鈥淲e have no plans of intervening to distort the market or complicate the situation even further,鈥 he said, echoing Energy Secretary Jericho Petilla鈥檚 proposal contained in the 2014 State of the Nation (Sona) technical report.
鈥淎fter 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鈥攖hat together, we can find solutions now, and address existing issues once and for all.鈥
Shortage from March to May
The Sona technical report pegged the energy shortage in Luzon at 400 MW to 1,000 MW from March to May 2015.
The Petilla proposal called on the President to invoke Section 71 of the Electric Power Industry Reform Act (Epira) of 2001.
But Aquino noticeably did not adopt the full language of Section 71, also known as the 鈥渆lectric power crisis provision,鈥 when he said the national government should be allowed to 鈥渃ontract鈥 additional generating capacity.
Section 71 states that Congress could allow the 鈥渆stablishment of additional generating capacity under such terms and conditions as it may approve.鈥
Aside from 鈥渃ontracting additional generating capacity,鈥 Aquino instructed the Department of Energy (DOE) to 鈥渃ontinue to solicit participation鈥 in the Interruptible Load Program (ILP) until 2015.
Spare generators
The program taps those with spare generators like Manila Electric Co. to make their units available to come up with additional capacity. The government would compensate the generator owners with the approval of the Energy Regulatory Commission, Aquino said.
鈥淏ut this is a voluntary program, and private companies will have their own, valid reasons to choose to participate or not in this venture,鈥 he said.
The President described the 400-MW Pagbilao III project to be completed in November 2017 as a 鈥渟trategic investment, not only in infrastructure and equipment, but also and more important, in the future of the Filipino people and our country.鈥
鈥淭his is absolutely necessary to ensure a steady supply of the power that Filipinos need day in, and day out, even as we seek to diversify the energy mix by bringing in other power sources,鈥 he said, adding that it would also generate some 2,000 jobs.
Aquino attributed the increased electricity demand to the country鈥檚 鈥渆conomic resurgence.鈥
鈥淭he simple fact is that the economy grew under our watch,鈥 he said, noting that the economy grew by an average of 6.3 percent from 2010 to 2013. 鈥淭he energy sector must be up to the task.鈥
听
House favors move
Asked how the House would respond to Aquino鈥檚 request, Speaker Feliciano Belmonte Jr. said in a text message: 鈥淧robably favorably as it would be unthinkable not to avert a future shortage.鈥
But Aquino鈥檚 critics were skeptical.
Bayan Muna Rep. Neri Colmenares said the Department of Energy had, to date, not sufficiently established that there was an impending power crisis.
鈥淭he President asked for emergency powers just like Republic Act No. 7648 during [former President Fidel] Ramos鈥 time and the essence of this power is to ask Congress for authority to enter into negotiated contracts for additional generating capacity,鈥 he said.
鈥淏ut up till now the [DOE] has not sufficiently laid out the reason for emergency powers because as their own data show there is enough power supply,鈥 Colmenares said in a statement.
Skyrocketing rates
Alliance of Concerned Teachers Rep. Antonio Tinio said, 鈥淚 don鈥檛 think a President who has committed unconstitutional acts, publicly criticized the Supreme Court for doing its job, and expressed his desire to stay on in Malaca帽ang beyond 2016 can be trusted with emergency powers.鈥 he said. 鈥淐ongress must find another way to solve the power crisis.鈥
Said Deputy Speaker Giorgidi Aggabao: 鈥淲e adopted the same tack during the time of President Ramos and it led to skyrocketing power rates. The challenge then for [Aquino] is to make certain this grant he seeks would not lead to perversely high power rates.鈥
Marikina Rep. Miro Quimbo said that while he favored Aquino鈥檚 action, Congress must ensure that the emergency powers would be limited and temporary.
鈥淲e must not allow it to last beyond the period during which the emergency exists and cannot reach into other areas that are not in any way connected to solving the emergency,鈥 he said.鈥With a report from DJ Yap
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