House to Palace: Explain creation of energy ‘superbody’

House energy committee chairman Alipio Cirilo Badelles said he would ask Malacañang to explain why it created a new agency with functions similar to those of energy and power-related agencies of the government.

Signed Nov. 20 this year, Executive Order (EO) 474 forms a body that will govern energy affairs of the country.

"We want to ask Malacañang on the impact of EO 474 because we see this as duplication of functions of the DOE and this has been causing a lot of anxieties for agencies and players in the sector...we want everything clarified and we are scheduling that in January," Badelles said.

Badelles said his committee will ask Executive Secretary Eduardo Ermita to explain the purpose of the creation of the Philippine Strategic Oil, Gas, Energy Resource and Power Infrastructure Office (PSOGERPIO).

Industry players in both energy and power sectors have expressed concern that the supposed "superbody" will confuse investors amid the issue of government takeover of vital public utilities and the continuing delay in the privatization of the National Power Corp. (Napocor)’s assets. Apparently, Malacañang has already named Energy Undersecretary Peter Anthony Abaya as the head of the new agency.

Energy industry sources quoted Abaya as saying would not accept the position if offered to him.

Badelles is also a member of the Joint Congressional Power Commission (JCPC) which endorses and reviews all concerns on Napocor privatization.

"We want to be clarified if this body will also be given the power to change or step into reviewing the Napocor privatization program we have already endorsed to President Arroyo," the solon said. According to the lawmaker, these issues are the least that the power sector needs because of the continuing delays in the sale of the Napocor assets.

"This will serve as a disincentive; thus, interest in the Napocor privatization program and the other projects being offered by the government in the energy sector will not shore up any interest for much-needed capital infusion," he said.

Oil industry officials said the EO could run counter to the objectives of the market deregulation. Observers also noted that the EO does not carry a provision that will set guidelines on how the "super body" would function and define the scope of its responsibilities.

"The EO is a mistake. Why would you have an EO that does not even define the parameters of what it wanted to do for the industry," the Independent Philippine Petroleum Companies Association said.