CEBU, Philippines - Amidst energy reform initiatives, the Department of Energy sees the need to restructure the country’s power sector.
In his presentation during the 3rd Cebu Energy Efficiency Forum 2013, DOE-7 director Antonio Labios said that a power sector restructuring is needed because the country’s end-consumer power rates are among the highest in Southeast Asia.
He admitted that there is a lack of real competition in the generation business and absence of consumer choice.
Labios said there are also uncertainty of funding sources for long-term investment requirements, lack of incentives to drive industry stakeholders to operate more efficiently and a highly fragmented distribution sector.
Labios presented before the participants coming from the various power stakeholders, the government’s four options to meet power demand growth.
These include the government’s providing the required funding, increase power rates to raise amounts needed, incur more loans and encourage participation of private capital by opening up the power industry through restructuring and privatization.
DOE undersecretary Loreta Ayson said that DOE likewise adopts several program to increase power efficiency and reduce cost in the government including the Government Energy Management Program wherein it resulted to a savings of P1.7 billion on electricity and P274 million in fuel from Sept. 2005 to March 2013.
This is under DOE’s Energy Efficiency and Conservation Program which also includes the National Energy Efficiency and Conservation Program, EU-Switch Program, Philippine Industrial Energy Efficiency Project, Philippine Energy Efficiency Projects and the Recognition Award.
Ayson stated that with this initiatives, the government is expected to have a potential savings of 243mwh/year or an equivalent of P3.2 billion in monetary savings and with a 173,000 tons of CO2 reduction.—(FREEMAN)