Business Mirror
TUESDAY, 06 DECEMBER 2011 20:52 PAUL ANTHONY A. ISLA / REPORTER
THE Department of Energy (DOE) has plans to recommend to Congress to pass a piece legislation that will categorize energy projects as projects of national significance.
In an interview, Energy Secretary Jose Rene Almendras emphasized the need for a law that will declare power projects of national significance to correct an instance where a local government can hold the country’s power supply and transmission hostage to a situation.
“I have an existing problem where transmission lines that go through a municipality that wants to charge exorbitant taxes. If not, they will disconnect or foreclose the transmission towers and the wires. So what’s going to happen [next]?” he said.
Almendras said a power grid failure could adversely affect power supply if such a situation occurs.
He revealed there are a few power projects hindered by unresolved issues with the local government.
Almendras added though that various options are still being explored to come up with short-term and stop gap solutions within the scope of the DOE’s authority and prerogatives.
These include working with the Board of Investments and the review of the Build, Operate, Transfer Law.
In 2009 the DOE sought the help of the National Economic and Development Authority to declare the oil depots of Chevron Philippines Inc., Petron Corp., and Pilipinas Shell Petroleum Corp. as projects of national significance or interest.
Neda, however, denied the request, saying that the authority to declare projects as such lies with the powers of the Chief Executive.
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