DOE proposes P2.3-B budget for next year

Published September 2, 2019, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2019/09/02/doe-proposes-p2-3-b-budget-for-next-year/

The Department of Energy (DOE) is seeking P2.3 billion budget for next year to support the implementation of several laws at its disposal.

Primary in the policies to be advanced by the department will be Energy Virtual One-Stop Shop (EVOSS) on project permitting; the Energy Efficiency and Conservation Act; and the Murang Kuryente Act.

For the enforcement of the EVOSS law in particular, the department will need to set up an efficient and effective information technology (IT) system that will manage permitting and documentary processes for energy projects – including those that shall be done in collaboration with other agencies.

Essentially, this shall end the technical glitch in the IT system of the DOE which rendered its own website inoperable persistently for the past two months already.

This law has been passed to simplify the processes of securing permits for power plant projects – which had been a headache for many project proponents for the longest time.

Although not very many industry players are really enthusiastic about the viability of EVOSS system – taking cue from Mindanao’s experience on a pilot undertaking for such, they would still want to see how the DOE can concretize it especially for the anticipated entry of new power investments.

Based on the prognosis of industry players, supply-demand equilibrium will happen again by year 2021-2022, so the EVOSS could either be the power sector’s saving grace or a shift to a new system could be the hurdle that will delay new power plant investments which could consequently plunge the country into a new round of power crisis.

The DOE’s proposed budget will cover P1.14 billion or roughly half for maintenance and other operating expenses (MOOE); P521 million or 23-percent for capital outlay; and P580 million or 25-percent for personal services. The balance of 52 million or 2.0-percent shall be for retirement and life insurance premiums.