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Senate OKs ‘special powers’ for PNoy to address power crisis
By AMITA O. LEGASPI, GMA News
(Updated 6:26 p.m.) Voting 16-0, the Senate on Monday approved on third reading a resolution granting President Benigno Aquino III “special powers” to address the looming power crisis especially during the dry months.
Joint Resolution 12 seeks the implementation of the interruptible load program in Luzon, among other measures, instead of leasing 300 MW generating sets at a cost of P6 billion for two years.
The panels of the Senate and House of Representatives are set to meet Tuesday morning to reconcile the differences in their versions of the resolution.
The Senate will be represented by Senators Sergio Osmeñas III, Teofisto Guingona III, Gregorio Honasan II, Nancy Binay, and Loren Legarda in the bicameral conference committee meeting.
The House of Representatives approved its version of Aquino’s request for special powers in December 2014.
Osmeña earlier said the proposed measure will not cost the government more than P500 million. He said the amount would be sourced from Malampaya funds.
The proposed resolution will also enable production from hydro and gas plants to be tweaked.
The resolution also recommends that government reimburses the private sector and NPC-PSALM for certain extraordinary expenses such as keeping whole certain PEZA locators that had been guaranteed by a previous administration lower than the normal grid rates.
“We believe that this special measure would alleviate the impending power shortage at least cost to the Filipino. And would enable government to keep its word that it would not compete with the investors in the generating sector,” Osmeña said.
Last year, Aquino asked Congress to immediately approve House Joint Resolution 21 so that the executive can hasten the acquisition of additional power generating capacities that will be used during the anticipated period of deficient energy supply on certain weeks starting March to July 2015.
“A critical energy situation will pose a tangible threat to the country’s developing economy and will hinder the delivery of basic social services to the detriment of the general welfare of the people,” Aquino then said.
Osmeña, however, was not amenable to the solution proposed by the Department of Energy.
“They were asking to purchase generator sets. Sabi ko hindi, hindi ako papayag dyan because we can adopt another program that will cost the Filipino people only P7 kwh rather than P35 kwh,” he had said earlier.
Biofuels Act of 2006
Joint Resolution 12 seeks the implementation of the interruptible load program in Luzon, among other measures, instead of leasing 300 MW generating sets at a cost of P6 billion for two years.
The panels of the Senate and House of Representatives are set to meet Tuesday morning to reconcile the differences in their versions of the resolution.
The Senate will be represented by Senators Sergio Osmeñas III, Teofisto Guingona III, Gregorio Honasan II, Nancy Binay, and Loren Legarda in the bicameral conference committee meeting.
The House of Representatives approved its version of Aquino’s request for special powers in December 2014.
Osmeña earlier said the proposed measure will not cost the government more than P500 million. He said the amount would be sourced from Malampaya funds.
The proposed resolution will also enable production from hydro and gas plants to be tweaked.
The resolution also recommends that government reimburses the private sector and NPC-PSALM for certain extraordinary expenses such as keeping whole certain PEZA locators that had been guaranteed by a previous administration lower than the normal grid rates.
“We believe that this special measure would alleviate the impending power shortage at least cost to the Filipino. And would enable government to keep its word that it would not compete with the investors in the generating sector,” Osmeña said.
Last year, Aquino asked Congress to immediately approve House Joint Resolution 21 so that the executive can hasten the acquisition of additional power generating capacities that will be used during the anticipated period of deficient energy supply on certain weeks starting March to July 2015.
“A critical energy situation will pose a tangible threat to the country’s developing economy and will hinder the delivery of basic social services to the detriment of the general welfare of the people,” Aquino then said.
Osmeña, however, was not amenable to the solution proposed by the Department of Energy.
“They were asking to purchase generator sets. Sabi ko hindi, hindi ako papayag dyan because we can adopt another program that will cost the Filipino people only P7 kwh rather than P35 kwh,” he had said earlier.
Biofuels Act of 2006
Meanwhile, the Senate also approved on third and final reading Monday Senate Bill 2622 which seeks to exempt power plants from the mandatory implementation of Republic Act No. 9367, or the Biofuels Act of 2006.
Osmeña said SB 2622, which would augment power supply when the Malampaya natural gas experiences supply shortages, would allow natural gas plants to use pure or neat diesel as their alternative fuel.
“The Biofuels Act mandates the use of biodiesel. Pure diesel cannot be utilized anymore anywhere in the Philippines, and since the power plants were built before Congress passed the Biofuels Act in 2006, they are not geared to deal efficiently with biodiesel, which clogs their filters,” he said.
He cited the Korea Electric Power Company (KEPCO), owner of the 1,200 MW Ilijan gas plant, which decreased its production rate from 600 MW to 420 MW, or a difference of 180 MW per power plant, because of its use of biodiesel.
Osmeña said an exemption from the Biofuels Law would allow the Ilijan gas plant to deliver 160 more megawatts.
The senator, however, said the exemption has limitations. He said the exemption could only be invoked when (1) there is a supply shortage as determined by the DOE; (2) the pure or neat diesel is an alternative fuel of covered plants; (3) the use of the pure or neat diesel will solely be for the production of electricity; and (4) the exemption will be only for the duration of the supply shortage.
Osmeña said the committee on energy had consulted and coordinated with more than two dozen agencies, groups and parties to come out with alternatives to avert the looming power crisis.
“The intent is to optimize existing assets and to bring down the average cost of electricity for the benefit of the consumers,” said the senator. —KBK/RSJ, GMA News
Tags: powercrisis, aquinospecialpowers
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