Energy Budget Targets Unserved, Underserved Areas

Wazzup Pilipinas!

The Department of Energy (DOE) is determined to bring light to 3 million households more at the soonest possible time through its Total Electrification Program (TEP).

The energy family led by Secretary Alfonso G. Cusi appeared on Tuesday before the House Committee on Energy seeking support for its two billion peso 2019 budget which intensifies efforts to provide electricity access to unserved and underserved areas throughout the country.

"We are aggressively pursuing initiatives catering to the unserved and underserved areas of the country to promote inclusive growth. This initiative supports Ambisyon Natin 2040 - providing a strongly-rooted, comfortable and secure life for all Filipinos," Sec. Cusi said in his opening statement.

The Energy Secretary further emphasized that achieving total electrification is more than a budgetary matter. Bringing power to the remotest zones of the Philippines entails effective collaboration with distribution utilities given that unserved and underserved sectors are located within their franchise areas.

TOTAL ELECTRIFICATION BY 2022

Based on the 2015 census, the December 2017 data of the DOE pegs the current household electrification level at 88.3 percent, with 21 million of the 24 million households in the country having access to electricity.

In the proposed 2019 budget, the TEP accounts for about 25 percent or an initial allocation of P505 million. It will align all of its efforts on providing electricity services to about 14,320 households with the National Electrification Administration, the National Power Corporation, the distribution utilities and other key stakeholders in the energy industry.

Initial DOE estimates have identified six regions with electrification levels falling below 80 percent. There are four in Mindanao (Autonomous Region of Muslim Mindanao 27.4 percent, SOCCSKARGEN 65.6 percent, Zamboanga peninsula 67 percent, and Davao region 68.2 percent), the Negros Island Region in the Visayas (79.3 percent) and MIMAROPA in Luzon (79.9 percent).

While the TEP envisions 100 percent electrification by 2022, Sec. Cusi also assured members of the House Committee on Energy that the energy family is working very hard to hit the target sooner.

DOE Briefs JCPC on Revised Rules on Financial Benefits to Power Plant Host Communities

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Department of Energy (DOE) Secretary Alfonso G. Cusi led the energy family today in briefing the Joint Congressional Power Commission on the revised rules on the financial benefits to the communities hosting the country’s power plants, legally known as Energy Regulation No. 1-94 (ER 1-94).

"It is our duty to serve our people to the best of our abilities. Thus, we recently issued a Department Circular to enhance the ER 1-94 Program and maximize its benefits to host communities," Sec. Cusi said.

Under the ER 1-94 Program, communities hosting power generation facilities or energy resources are entitled to one centavo per kilowatt-hour (P0.01/kWh) of the total electricity sales of Generation Companies or Energy Resource Developers.

According to the Energy chief, one of the major changes introduced is the direct remittance of financial benefits to host communities for their immediate utilization. Streamlining the release of funding will eliminate the bureaucratic process which hampers socio-economic development of the communities hosting the power plants.

After conducting nationwide public consultations to solicit the inputs and comments of key energy stakeholders, Sec. Cusi signed Department Circular No. DC 2008-08-0021, amending Rule 29(A) of the Implementing Rules and Regulations of Republic Act No. 9136 or the EPIRA on 26 July 2018.

Sec. Cusi further emphasized, "It is high time that the Program is revised. The modifications we are introducing will support the government's Total Electrification Program to energize unserved and underserved areas. We want the host communities to immediately reap the benefits of hosting our power generation facilities."

The DOE is continuously working with all energy stakeholders to further improve the ER1-94 Program. Guidelines for the implementation of the Department Circular will be issued within 60 days, to be followed by information, education and communication campaigns to inform the public.

Cusi Orders Importation of Low-Cost Oil to Help Arrest Inflation

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Energy Secretary Alfonso G. Cusi takes steps to address slowing growth and high commodity prices by tapping the Philippine National Oil Company-Exploration Corporation (PNOC-EC) to import low-priced fuel.

PNOC-EC acquired in December last year, a trading function to generate added income for the government.

"PNOC-EC will source low-priced petroleum products particularly diesel, to mitigate the impact of volatile oil prices," Sec. Cusi said.

The measure is expected to have a ripple effect on taming the prices of basic commodities, thus controlling inflation. The resulting price relief would ease the plight of consumers.

Under the project, the trading function of PNOC-EC will be employed in the acquisition of low-priced fuel which will mainly come from state deals.

The PNOC-EC Board chaired by the Energy Chief is drafting the trading procedure and policy safeguards for the public on the proposed importation.

The products bought at a special price will be made available to dealers, operators and independent petroleum players under a Memorandum of Agreement.



EURO-II COMPLIANT DIESEL
The Department of Energy (DOE) also issued a Memorandum Order requiring oil companies to provide Euro-II compliant automotive diesel oil to help reduce fuel prices.

"Pursuant to existing Philippine National Standards on Diesel Fuel Quality and in accordance with the provisions of Republic Act 8479, otherwise known as the Downstream Oil Deregulation Law, Republic Act 8749, otherwise known as the Philippine Clean Air Act and for the purpose of reducing the impact of rising petroleum prices in the world market, all industry players are hereby directed to provide at the retail level Euro-II compliant automative diesel oil as a fuel option for the transport and industrial customers," the Memorandum Order stated.

It also directed oil companies offering Euro-II compliant diesel to submit a monthly compliance report, indicating the list of participating retail outlets.

According to Sec. Cusi, the sale of said diesel will be subjected to close monitoring by the DOE.