Thursday, June 30, 2016

Duterte Energy chief a plus factor – Osmeña



by Mario Casayuran June 29, 2016 (updated)

Sen. Sergio R. Osmeña III, outgoing chairman of the Senate Energy Committee in the 16th Congress, said yesterday the appointment of Alfonso Cusi as Department of Energy (DOE) secretary is a plus factor for the Duterte presidency in unraveling the country’s complex power problem.
“He (Cusi) has no background in energy but he has background in management. So I like that…a manager who is a problem solver. I have always asked whichever administration basta maglagay na mahusay na manager but don’t appoint political appointees…di nila kaya yon. Put in a good manager and let him pay full attention to it,” Osmeña said.
Osmeña gave his observation on the pesky power sector in an interview days before his six-year term as Senate expires at noon today.
The interview focused on the complex energy situation any administration has to face given the fact that the Philippines could be considered a grade below the level of Singapore and Japan that have the highest power rates in Asia. Two years ago, the average Filipino electric consumer paid P10 per kilowatt hour (kwh).
“I would suggest the new President and his secretary (Cusi) call for a summit among all the major players in the geothermal field and power generating sub-sector and ask for their ideas. That way they will understand what is required to development additional geothermal fields and at the same time the public will be able to appreciate the problems that stand in the way of additional geothermal production,” he said.
Osmeña said problems facing investors in the geothermal field are:
- Investors want government to build for them roads leading to possible geothermal sites as they would lose much investments if they build the roads and the possible sites are not commercially viable.
- Difficulty in obtaining local permits.
- Environmentalists whose “kalikasan” writs usually obtained from the courts last for two to three years.
“What we need is installed capacity. The Philippines right now has a peak demand nationwide of 13,000 megawatts (MWs) and we have a dependable capacity of 15,000 MWs. Luzon’s peak demand is 9,700 MWs but we do not have reserves in the Visayas,” he added.
Comparing the Philippines with its neighbors, Osmeña explained that power rates in Indonesia, Malaysia and Thailand are comparatively lower vis-à-vis the Philippine rate all because these Southeast Asian countries subsidize their power industries.

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