While the House of Representatives is ready to grant emergency powers to President Benigno Aquino III to deal with a looming power crisis next year, House Majority Leader Neptali Gonzales II on Wednesday asked Malacañang to justify the necessity of releasing public funds to pay for the lease of additional generating capacity.
Renting power from an outside source is one of the options presented by the Department of Energy to Aquino and Congress to address the power crisis expected to hit the country in the summer of 2015.
“Our problem is how do we justify this rental? They say we have to rent [the additional generating capacity] for a minimum of two years but we’d only need it for three months. Will it be right to ask the people to shoulder P6 billion for additional power you’d need for only three months next year? That’s a bit steep (Medyo mabigat ata ‘yun),” Gonzales said.
Aquino has asked Congress to grant him emergency powers to contract additional generating capacity to avert a potential power crisis next year, citing as basis Section 71 or the Electric Power Crisis Provision under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA).
Oriental Mindoro Rep. Reynaldo Umali, chair of the House energy panel, said the government would spend some P6 billion to generate additional capacity for the Luzon grid since the minimum lease period for contracting companies was two years.
DOE Secretary Carlos Jericho Petilla said the government is eyeing sourcing the amount from the accumulated royalties from the Malampaya gas-to-power facility.
No price hike
Gonzales said Malacañang should specify the parameters of the emergency powers the President was seeking because it is difficult for the House to draft a joint resolution based solely on Aquino’s request.
“What we have received is a [formal] communication from the President but we don’t know what exactly he is asking for,” he said.
The Majority Leader said emergency powers that would be granted to Aquino should not result in higher electricity prices for consumers.
Gonzales said that while giving Aquino the authority to contract additional generating capacity was one of the options provided in the EPIRA for addressing a potential power shortfall, there were also other steps the government could take to increase power in the Luzon grid.
"Even without emergency powers, the government has the capacity through the DOE and ERC (Energy Regulatory Commission) to assess the situation," he said.
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) has said it would support Aquino’s request for emergency powers on the condition that it would not drive up electricity rates.
“We insist that the DOE now present their tariff simulations and cost-impact scenarios to the public so we will know what to do,” said TUCP Executive Director Luis Corral said in a statement. — NB, GMA News
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