New DOE chief to focus on oil, electricity prices

MANILA, Philippines - Newly appointed Energy Secretary Carlos Jericho Petilla has set his focus on consumer concerns, particularly oil and electricity prices.

In his first media briefing since taking oath last Sunday, Petilla said his thrust is to create a long-term energy plan that will surpass administrations and hopes to lower prices eventually.

“There are two major sides, the oil prices and the more pressing is electricity,” he said.

Since the fuel industry is deregulated, the least the Department of Energy (DOE) can do is to get consumers involved in finding out what makes prices go up and down, Petilla said.

For the energy sector, the pressing concern is the rotating blackouts in Mindanao, he added.

Petilla, who served as Leyte governor from July 2004 to Oct. 30, 2012, replaced Jose Rene Almendras, who was promoted Cabinet Secretary.

“My target is to come up with an energy plan that is based on supply and demand on a long term basis that is structured and we will make sure we can do this as a whole,” Petilla said.

The goal is to eventually lower electricity prices in the long run, he said.

The DOE has so far drafted the 2012-2030 Philippine Energy Plan that outlines the long-term goals for the energy sector, including the construction of new power plants and the development of new fuel sources.

There will be no major changes in the DOE despite the transition in the next 30 days.

Petilla said the resignations of undersecretaries Jose Layug Jr. and Josefina Patricia Asirit were not yet accepted.

“They will stay in the next 30 days because I need vital information from them,” Petilla said, adding that he will bring in a four-man transition team that will occupy an advisory position.

The new energy chief is taking a crash course on the energy sector, which is bombarded by consumer and investor concerns on high electricity prices.

Electricity rates in the Philippines is the second most expensive in Asia, next only to Japan, due to lack of generation capacity, dependence on fuel imports and the absence of government subsidies. The high cost of doing business makes firms less competitive and products more expensive.

The DOE hopes to encourage more companies to invest in power generation given the continuous economic growth of the country.

“If we can be assured of a sustainable supply and an optimal price to the consumer, it can be foreign or local [investors],” Petilla said, adding that more companies might result in lower electricity rates.

Petilla said the marching order from President Aquino is to continue Almendras’ programs in the DOE and stabilize the supply of power.

Since early this year, Mindanao has been reeling from rotating outages due to supply shortfall.

On privatization, Petilla said he will review the merits of selling the government’s power generation assets like the power barges, adding that private firms can be encouraged to participate through decent profits.

“If somebody is going to invest in the energy sector in the long term, we need to assure them that the agreements will be respected,” Petilla added.

Petilla is also willing to sit down with proponents of nuclear power to weigh their arguments.

The DOE will also take the cue of the President in terms of disputed areas like the portion of the West Philippine Sea, Petilla said.