Energy and economic dependence

Manila Standard Today
Counterpoint
Alvin Capino


Let’s leave the impeachment trial issue for a while.


Today, we turn the spotlight on a major national woe—energy dependence and how it affects the pocket of every Filipino.


Over the past two weeks, gasoline prices soared, not once, not twice, but thrice. Motorists, commuters and electric power consumers can only quietly wince, knowing that there is nothing the government can—or would—do about it.


Interviews over AM radio of Energy Secretary Rene Almendras the other week did not do much to assuage the public’s anxiety and pain. In one radio interview, Secretary Almendras had to do two things. One, he had to deny that speculations over the possibility of “gas rationing” had come from his department. Two, he had to admit that he himself is peeved by the snail-paced advance in the use of renewable power in the country.


We can only commiserate with Secretary Almendras. His ire over the apparent helplessness of his situation is understandable. When Iran test-fires a missile, oil prices spike and he can do nothing to stop both. He is running an energy sector which is 95 percent dependent on imported oil for transport use. He can definitely do something to reduce that dependence but he has formidable obstacles to deal with.


Compounding Secretary Almendras’ woes is the fact that his boss, the President, has a clear-cut, clearly expressed renewable energy policy, particularly for the power sector. The goal is likewise clear – to free the country from over-dependence on imported fuels to fire our power plants. This way, the prices of electricity don’t suffer a spike just because there’s a strike somewhere in an oil-producing country in Africa or because the Iranians felt like depriving the American President of some precious sleep.


We asked our long-time friends from the power sector how the current electric power generation picture in the country looks like. Based on their description, we understood better Secretary Almendras’ sense of frustration.


Here’s how it looks like: Most of our power plants run on imported fuel, mainly imported coal and imported diesel, or natural gas the cost of which is linked to international oil prices. These coal and natural gas plants are what are called base-load plants—those that run 24/7 and which supply the regular electricity requirements of homes, businesses and industries.


We asked them what our large hydro-electric plants were doing since these are basically using renewable power. We were told these plants are now used mainly as “peaking plants”—those which are brought into the power supply picture only when power demand peaks during the middle of the day.


Ergo, what we use most of the day come from imported power generation raw materials: coal and diesel. Ergo, our power supply is captive in the hands of countries from where we buy them. Ergo, energy dependence means economic dependence.


Making matters worse, both coal and diesel are expensive and dirty.


And because they are expensive and dirty, the administration which Secretary Almendras serves has said time and again that it wants to significantly up the country’s reliance on clean, sustainable and renewable energy sources which won’t hurt both our pockets and our environment.


Not too fast, Secretary Almendras’ adversaries, however, say. He now faces a formidable phalanx of renewable energy foes which has so far prevented him from bringing renewable power into the overall power generation picture.


We saw the list of personalities which have blocked his moves. These are well-known and highly-respected names. The public recognizes them and would agree that it would be very difficult for Secretary Almendras to battle them.


Here are some of them: Ramon del Rosario, Jr. of the PHINMA group; Del Lazaro of the Ayala Group; former Arroyo energy secretary Raphael Perpetuo Lotilla, brother of Secretary Mar Roxas’ DOTC underling, Jose Perpetuo Lotilla; former Arroyo spokesman and ex-activist Gary Olivar; former Arroyo adviser Gloria Tan-Climaco; former Arroyo labor secretary Patricia Sto. Tomas; and former Ramos administration personalities Romeo Bernardo and Bobby de Ocampo.


These biggies in politics and business lead a group called Foundation for Economic Freedom.


We overheard colleagues covering the energy beat that the FEF has consistently succeeded in getting the hearings at the Energy Regulatory Commission on renewable power rates postponed. Latest news is that the Del Rosario-led group is petitioning for a temporary restraining order from the Court of Appeals to stop the ERC altogether from hearing renewable power petitions.


Given the stature of the big names in the FEF, Secretary Almendras should win the sympathy of both the public and his Boss. These are influential people with enough resources to make sure that additional renewable power plants don’t ever run in this country.


If our recollection is correct, Ramon del Rosario, Jr. was finance secretary during the Ramos administration. So was Bobby de Ocampo. Del Lazaro, like the Arroyo administration’s Lotilla, was once a Ramos energy secretary.


Their association with former President Ramos should somehow mean that they were in good terms with the first Aquino administration which later endorsed then-Defense Secretary Fidel Ramos as its bet in the 1992 polls. And maybe, that friendship should rub off on the second Aquino administration somehow.


Now, if you can’t get good friends to support your renewable energy program, how far do you think that program can go?


Now we understand Secretary Almendras’ problems better. We hope his Boss does, too.