Committee chair Oriental Mindoro Rep. Reynaldo Umali said Sunday that the additional authority the House is studying to grant Aquino will allow him do the following: make the Interruptible Load Program (ILP) mandatory, contract additional capacity through bilateral means, lease or buy gensets, and implement energy conservation measures.
“We don’t want to limit the President to having just one option in addressing this crisis. We want to provide him the flexibility he needs to address the power shortage next summer,” he told GMA News Online in a phone interview.
Aquino has asked Congress to pass a joint resolution authorizing him, in accordance with Section 71 of the Electric Power Industry Reform Act (EPIRA), to contract additional capacity for the Luzon grid for the summer months of 2015, when a power supply deficit of at least 300 megawatts (MW) is expected.
Section 71 of the EPIRA states that: “Upon determination by the President of the Philippines of an imminent shortage of the supply of electricity, Congress may authorize, through a joint resolution, the establishment of additional generating capacity.” The law prohibits the government from building power plants and entering into contracts to generate additional power supply.
On Saturday, Aquino asked leaders of Congress to hasten the passage of the joint resolution to give the government enough time to negotiate contracts and install gensets.
Umali wants the House to approve the joint resolution by October 29, the last session day before the lower chamber goes on recess from November 1 to 15.
Not blanket authority
Despite the variety of options that the House panel wants to be available to the President, Umali clarified Congress will not give Aquino blanket authority.
“We’ll give the President a mix of options to deal with the power crisis but this won’t be a blanket authority. We’ll lay down the parameters and the guidelines in the draft of the joint resolution we will file,” he said.
Purchasing gensets is seen to cost P9 billion while leasing them has a P6-billion price tag. Requiring private companies to operate their gensets under the ILP, meanwhile, costs around P81 million for 500 MW over two and a half months during the summer of 2015, based on records of the Manila Electric Company (Meralco).
Umali said details of the joint resolution, including the power supply deficit expected by the Department of Energy, will be ironed out in the committee hearings that will take place starting October 20.
When asked if the House is open to extending the duration of the President’s emergency powers to July 31, 2015, similar to what was indicated in the draft joint resolution submitted by Energy Sec. Carlos Jericho Petilla to the Senate last week, Umali said: “Why not?”
“It looks like the Department of Energy has foreseen some changes in the circumstances when the emergency powers will be needed—from just the summer months up until the end of July. Of course we have to hear their basis for saying [the emergency powers must be until July] but if the President needs the authority until July, why not?” he said.
The draft of the joint resolution submitted to the Senate Energy committee allows the President to enter into negotiated contracts “for the acquisition of additional generation capacity which may include the construction, repair, rehabilitation, improvement or maintenance of existing power plants projects and facilities or its rental.”
The transaction shall be exempt from the provisions of Republic Act No.9184 or the Government Procurement Reform Act.and will not require approval of the Government Procurement Policy Board and the Investment Coordinating Committee.
No magic tricks
In a statement, Bayan Muna party-list Rep. Neri Colmenares criticized Aquino for urging Congress to fast-track the passage of the joint resolution granting him emergency powers even as Petilla has yet to tell lawmakers the capacity of existing grids and the actual projected power supply shortfall next summer.
“We oppose emergency powers for Pres. Aquino precisely because not only has Sec. Petilla failed to prove the claimed lack of supply, but also because this short-sighted band aid solution will increase the cost of electricity and will not assure stable energy supply. We need long term solutions, not short term magic tricks,” he said.
The lawmaker said the urgency with which the Aquino administration is asking Congress to grant the President’s request may mean some party stands to benefit from the authority that will be given to Malacanang.
“Many are saying that there a million and one ways to address a supposed power deficit outside the emergency powers scenario but Malacanang is hell-bent on getting these powers giving rise to speculation that these will be used for the next elections,” Colmenares said. — BM, GMA News
