House to vote on emergency powers resolution this week

MANILA, Philippines - The House of Representatives is set to vote in plenary this week on a proposed joint resolution granting emergency powers to President Aquino to address an energy shortage in Luzon in 2015.

The proposed Joint Resolution 21, approved by the House committee on energy last week, was described by proponents as a cost-effective alternative to what Aquino had originally sought from Congress in September.

“Some may call it watered down, but I think the best way to describe it is cost-effective,” Oriental Mindoro Rep. Reynaldo Umali, chairman of the panel, told The STAR.

The centerpiece feature of the joint resolution is the Interruptible Load Program (ILP), in which large commercial and industrial establishments will disconnect from the grid and use their own generators during peak hours to free power for use of households and other small users.

The government will compensate firms participating in the ILP for fuel use and other operating costs and grant them exemption from the value-added tax for certain expenses connected to the program.

The House leadership earlier scrapped a proposal from the Department of Energy (DOE) to lease or buy power barges, a move that is expected to cost as much as P12 billion.

Umali said the cost of the ILP is expected not to exceed P200 million.

“The beauty of the ILP is that we only pay if the generators are used,” the lawmaker said. “If there are no brownouts, then we don’t pay.”

He estimates there would be about two weeks of red alert from March to July – the period covered by the joint resolution – and around 15 weeks of “yellow alert.”

He said the cost of the ILP can be covered by proceeds from the Malampaya gas wells in Palawan under the law. He said companies, including some government-owned and controlled corporations, have until Dec. 31 to sign up for the ILP.

He reiterated that the government has police powers to enforce the ILP.

Energy Secretary Jericho Petilla, however, said last week the ILP cost could reach nearly P500 million even if the DOE’s list of participants in the program is much shorter.

Umali said he would clarify with Petilla the difference of cost estimates.

The resolution was authored by Speaker Feliciano Belmonte Jr., Majority Leader Neptali Gonzales II, Minority Leader Ronaldo Zamora, Deputy Speaker Henedina Abad, Eastern Samar Rep. Ben Evardone, 1-Care party-list Rep. Edgardo Masongsong and Umali.

The House leadership is expecting Aquino to certify the resolution as urgent so the chamber can approve it on second, and third and final reading in one plenary session next week.

The resolution also mandates the fast tracking of committed projects, and power plants for interconnection and rehabilitation. It also provides that energy conservation measures “shall be pursued vigorously in both public and private sectors.”

The implementation of the ILP and other measures stipulated in the joint resolution is from March to July next year unless terminated earlier by Congress.

The resolution also requires Aquino to submit a monthly report to Congress.

The panel has set the estimated shortfall in Luzon at 1,004 megawatts (MW). Petilla warned lawmakers yesterday that all stakeholders should make sure the ILP as well as other measures would succeed.