Energy Dept. to lower cost by attracting investments

The Aquino administration intends to lower the cost of electricity in the country by pushing for more investments in the power sector. The Energy Department has released its platform and policy that focuses on "encouraging investments in the energy sector to tap more diverse sources of power and lower the cost of energy in the long term." The newly released pronouncements stated that the Aquino administration will ensure a "level playing field" for investors in the energy sector to increase investments and boost power production. The department vowed to "stop to cronyism in the power sector" and rationalize the permits and clearances processes to make the industry attractive, fair, and competitive. Consumer protection "The administration will work to make energy available and affordable for consumers and put in place consumer protection programs in the energy sector," the report said. The department, headed by Energy Secretary Jose Rene Almendras, will take the lead in ensuring sufficient power supply in the country. The department will support the move to mitigate the power crisis in the short-term by leasing power barges, entering into contracts with cooperatives and private utilities for additional generating capacity, and allowing system operator National Grid Corp. of the Philippines to use ancillary services. Apart from promoting demand side management, the department said in the report that It intends to review all projects in the department and its attached agencies "in view of a zero-based budgeting system where their budget allocations are shaped by their performance and their compliance with Commission on Audit reports." The department will look at the feasibility of establishing a national grid linking Luzon, Visayas, and Mindanao with a view to achieving energy self-sufficiency. Based on the current national energy development plan, the Aquino administration will "identify areas of improvement which will enhance the affordability, availability, and sustainability of the country’s power resources." By taking a closer look at how the Electric Power Industry Reform Act of 2001 is being put to use, the department said in the report that necessary amendments will be incorporated into the act while the government reviews its remaining power-generating assets that need to be sold and privatization under the EPIRA. Clean energy The department intends to draft its own National Energy Development Plan encompassing self-sufficiency and the extensive use of clean and sustainable sources of energy such as wind, hydro and solar. The department said that the pursuit of alternative sources of energy will be a means to secure the constant supply of power for the country, and that biofuels production will not undermine food production. In the case of the department, the Aquino administration intends to streamline and rationalize it and its attached agencies "to have clear cut and distinct mandates and that qualification standards, especially eligibility, will be strictly followed." The Civil Service Commission, the report said, will ensure that the performance of the department and its technical energy experts, including those in its attached agencies, "will be evaluated rationally and systematically through an effective and measurable performance management system." The move is meant to ensure the accountability of government agencies and officials. —VS, GMANews.TV