Business World Online
16 Sep 2014 Written by Butch Fernandez & Jovee Marie N. dela Cruz
Before he left for Europe and the United States last week, President Aquino had asked Congress leaders to fast-track the passage of a joint resolution granting him emergency powers to address an anticipated energy-supply crisis that, he warned, could result in recurrent brownouts in Luzon by summer next year.
In a letter to Speaker Feliciano Belmonte Jr. dated September 12, or a day before Mr. Aquino left for a two-week trip to Europe and the US, the President invoked Section 71 of the Electric Power Industry Reform Act (Epira) in seeking immediate enactment of a joint resolution authorizing Malacañang “to establish additional generating capacity” to avert brownouts.
President Aquino’s one-page letter, a copy of which was furnished to Senate President Franklin Drilon, cited a Department of Energy report projecting “a critical electricity situation in the summer of 2015 arising from, among others, the expected effects of the El Niño phenomenon, the 2015 Malampaya turnaround, increased and continuing outages of power plants and anticipated delays in the commissioning of committed power projects.”
“There is no gainsaying that the imminent electric power shortage during these months is a real threat to the country’s growing economy and the general welfare of the people,” President Aquino added.
He conveyed to the two Congress leaders his concern for the “speedy enactment” of the Palace-requested joint resolution, saying this will ensure the energy requirements of the country for this critical period “through a specific, focused and targeted acquisition of additional generating capacities for use during the limited periods of time of very tight energy supply.”
Critical situation
Mr. Aquino asserted that the government needs the emergency power, noting that such authority would enable the Aquino administration to “address the imminent shortage of electric power for the summer of 2015 in Luzon.”
The provision invoked by President Aquino in seeking emergency powers from Congress, Section 71 of the Epira, states that the President, after determining “an imminent shortage of supply of electricity,” may ask Congress to grant him the authority to establish additional generating capacity.
Energy Secretary Carlos Jericho L. Petilla, who earlier admitted prodding Mr. Aquino to avail himself of such emergency powers under the Epira to deal with the looming crisis, explained this was needed because the law barred the government from putting up power plants, a provision the authors of the law included to prevent the state from competing with the private sector in power generation.
Cost of additional capacity
Liberal Party Rep. Reynaldo Umali of Oriental Mindoro, chairman of the House Committee on Energy, said the contract for additional capacities will cost the government about P6 billion to cover the projected 300 megawatts (MW) of supply deficit in Luzon.
“One of the options is...the national government will subsidize the P6 billion through Malampaya funds,” he said.
Umali said his panel will hold hearings during the Congress’s scheduled recess period from September 27 to October 19 to draft the resolution.
“We [the House of Representatives] are expected to pass the resolution by [end of] October to give the government enough time to contract additional capacity,” he said.
“I have asked my secretary to draft a letter to Secretary Carlos Jericho L. Petilla, to define what should be our basis for the issuance of a joint resolution particularly the effects of the El Niño phenomenon and the 2015 Malampaya turnaround,” he said. Umali said power crisis will not have a direct impact in the Visayas region.
Opposition
Party-list Rep. Terry Ridon of Kabataan said “with the tyrannical tendencies of the President, Congress cannot grant more powers to Mr. Aquino. source
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