Mar debunks DOE power shortage claim, says there is oversupply

MANILA, Philippines – Sen. Manuel Roxas II debunked yesterday the claims of Energy Secretary Angelo Reyes that a power shortage would occur next year.

“I am monitoring the power sector because this is one of the most sensitive parameters for investors,” he said.

“So I know that there is ample supply. In fact, I know the statistics: for the first half of this year, there was flat growth, meaning no growth in demand. This was because business had been slow. Residential (consumption) was flat, industry was down, commercial was slightly up.”

Roxas said the government must not alarm the people with doomsday scenarios for its own advantage.

“They should get a new scriptwriter,” he said.

“That’s overused already. That’s only in their imagination. Because the truth is, backed-up by engineering data, they are giving us a bum steer.”

Roxas said based on his information, the country was even experiencing an oversupply in power.

“So how can they claim there will be shortage? They are conditioning people’s minds,” he said.

Independent power producers have announced that the country has enough supply of power until next year, Roxas said

Reyes lines up power projects

The Department of Energy has lined up numerous power projects to meet expected shortages in power nationwide.

Energy Secretary Angelo Reyes said the National Grid Corporation of the Philippines in coordination with the energy department is implementing the Transmission Master Plan for 2010-2030 to ensure that power generation projects will be responsive to the requirements of the power sector.

Reyes said the private sector has expressed interest to put up new generating capacity, but many are only “indicative,” with 2012 as the earliest possible time for the setting up of the power projects.

“Indicative means they still have to go to the process of getting permits from national agencies and local governments,” he said.

Reyes said a committed power project is GN coal-fired power plant for the Luzon grid with a capacity of 600 MW.

Committed power generation projects for the Mindanao grid are Minergy, PNOC-EDC Mindanao, HEDCOR Sibulan Inc.

Committed power generation projects for the Visayas grid are those by the Panay Energy Development Corp., Green Power Panay, EDC Ansulo, KEPCO-SPC Power and Cebu Energy Development Corp., he added.

Reyes said these projects have already obtained permits from the concerned national agencies and local governments and are in the process of “financial closing.”

On-going projects in Luzon are in Concepcion-Clark, Batangas Transmission Reinforcement Project, Luzon Upgrading Project, Hermosa Balintawak Relocation Project, and Biñan-Sucat project, he added.

On-going projects in the Visayas include the Northern Panay Backbone Transmission project, and in Mindanao, the Maramag-Bunawan Transmission Project in North Cotabato, Abaga-Kirahon Transmission Project, Kirahon-Maramag Transmissin Line.

Esperon lauds Reyes

Presidential Management Staff head Hermogenes Esperon Jr. lauded yesterday Secretary Reyes for disclosing that the threat of a power failure could affect the automated elections May.

Speaking to The STAR after presenting to various stakeholders the government’s plan to build an 88.9-kilometer expressway from La Paz, Tarlac to Rosario, La Union, Esperon said a blackout on election day could happen, and that it’s good Reyes had brought the matter up to the public.

“From what I understand we have enough power supply up to 2010 but due to technical procedures, problems could indeed arise due to current load and temperature and nature itself. t’s good that it came out so we can address it,” he said.

Both Reyes and Esperon are retired Armed Forces chiefs.

Esperon dismissed allegations that many members of Class ’78 of the Philippine Military Academy have become beholden to President Arroyo and could be used to back up a plan for her to assume emergency powers.

“I know Class ’78,” he said.

“I have worked with them, except for (Brig. Gen.) Danny Lim, but I have worked with all of them and I find them to be professionals.

“They would rather perform their authorized military missions. I am confident that the AFP through the years has evolved more and more as a professional organization.”

Reyes has asked Congress for some P3 billion to finance a power contingency plan to ward off a nationwide power crisis next year.

Brownouts are already being experienced in Visayas and Mindanao and the critical period for Luzon would be next year, he added.

Meanwhile. Esperon also said that he expects Public Works Secretary Hermogenes Ebdane Jr., a retired Philippine National Police chief, to be named defense secretary when Gilbert Teodoro Jr. resigns to run for president under the Lakas-Kampi-CMD banner next year.

“It is possible he would be appointed because he was once there before,” he said.

Roxas backs LPG regulation

Roxas has sponsored a bill seeking the regulation of the liquified petroleum gas (LPG) industry.

The LPG Act of 2009 aims to establish a monitoring and supervisory framework for the industry and require the industry to abide by product specifications of the Department of Energy.

The bill seeks a fine of P10,000 for an individual and P20,000 for a corporation for each cylinder containing adulterated LPG, or imprisonment of at least six  months but not more than two years, or both, at the discretion of the court.

Any person who imports used or second-hand LPG cylinders or containers would, upon conviction, be penalized with a fine of at least P l00,000 or P3,000  per cylinder or container, whichever is higher, and imprisonment of at least six years and one day to 12 years.

Any person who pilfers LPG would, upon conviction, be penalized with a fine of P1 million for an individual and P2 million for a corporation, or imprisonment of at least six months but not more than two years, or both, at the discretion of the court.

‘Bill favors oil firms’

The LPG Marketers Association said yesterday the bill threatens to displace close to a million workers involved in the marketing, distribution and refilling of cooking gas.

Arnel Ty, LPGMA president, said Senate Bill 1187 favors Petron Corp., Pilipinas Shell Petroleum Corp., and Total, and that it would kill small players if passed.

“If passed into law, 138 re-fillers, 24,000 dealers and 36,000 outlets nationwide would shut down,” he said.

“More than 500,000 workers would lose their jobs. More than three million people would face starvation.”

Ty said once it becomes law, the bill would impose a monopoly of the Big 3 oil firms on the LPG industry.

“As small players who do business only for survival, the safety of our consumers is paramount to us,” he said.

“We never intend to compromise their safety or harm people who give us the livelihood, we do not cheat them.  –-Aurea Calica (The Philippine Star) with Donnabelle Gatdula, Ding Cervantes, Christina Mendez