DOE forms body to check on distribution firms

MANILA, Philippines – The Department of Energy (DOE) will set up an independent Reliability Council (RC) to ensure the compliance of electric power industry participants on their obligations as utility companies.

The RC is a component of the DOE’s Energy Reform Agenda (ERA) specifically under the short-term energy security plan.

“This is consistent with the DOE’s goal to put in place a reliable power supply in the near term,” Energy Secretary Jose Rene Almendras said.

He said this council is also consistent with the government’s policy to ensure that all power stakeholders comply with existing rules. It will also ensure the option for the DOE to report and recommend to the Energy Regulatory Commission (ERC), the power sector watchdog, the imposition of the penalties and sanctions to the industry participants.

In relation to this, the DOE will also conduct an inventory of all energy and plant sites for a comprehensive monitoring of participants in the power industry.

The DOE will come up with an ERA that would be used as a guide in governing the energy sector in the next six years.

Almendras, however, pointed out that they still have to finalize the ERA’s content pending consultations with stakeholders.

Also included in ensuring power supply in the short-term is the ability to tap the embedded generators in Luzon should the power supply situation worsen.

Almendras said they will also undertake a systems operations audit to determine the real status of the transmission system.

More so, he underscored the need to develop monitoring and continuous disclosures of the status of all generation facilities.

The energy chief said there is also a need to update power supply contingency plan.

Last week, the DOE released a draft ERA which underscores the guiding vision of “Energy Access for More” to mainstream access of the larger populace to reliable and affordable energy services to fuel, most importantly, local productivity and countryside development.

At the onset of the Aquino government, the energy sector has outlined the following three major pillars as its overall guidepost and direction: ensure energy security; achieve optimal energy pricing and develop sustainable energy plan.