Published
February 20, 2017, 10:00 PM By Myrna M. Velasco
An initial allocation
of P50 million has been set for the proposed “Virtual One-Stop Shop” (VOSS)
platform for power project approvals that shall be placed under the supervision
and control of the Department of Energy (DOE).
This has been proposed
in a legislative measure lodged by Senate Committee on Energy Chairman Sherwin
T. Gatchalian, in line with plans to streamline processes on project approvals
and permitting in the energy sector.
“The sum of P50 million
for the initial implementation of this Act shall be taken from the current
appropriations of the DOE,” the proposed policy has stipulated.
The VOSS platform
refers to an online system “that allows the single submission and synchronous
processing of all required data and information, and provides a single
decision-making portal for the approval of new power generation projects.”
Permitting process
involves “the comprehensive procedure undertaken in order to put up a power
generation project,” that shall include registration of a corporation,
acquisition of an operating contract, construction of the project and all the
other documentary requirements on fees and taxes.
Gatchalian explained
that hastening the approval processes, primarily for the next batch of power
projects, is highly necessary so the country can be spared from any next round
of electricity supply shortages.
“Meeting future demand
in a timely manner is crucial because it has cost impacts on the consumers and
the economy,” he said.
Gatchalian emphasized
that “a shortage of power supply will force distribution utilities to buy from
the wholesale electricity spot market where spot prices can possibly shoot up,
or purchase from more expensive technologies – all leading to increased retail
rates for the consumers.”
By his estimate, the
lawmaker noted that “a one-hour power outage will cost the service sector and
the industrial sector approximately P4.49 billion,” or P3.29 billion worth for
Luzon grid; P646.37 million for Visayas and P556.60 million for Mindanao.
In attracting fresh
capital for power projects, the lawmaker indicated that “one significant
barrier to entry of new plants is the lengthy permitting process accompanied by
copious documentary requirements.”
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