DOE thanks Senate on long-term power stability discussion, seeks broader powers over implementation of energy policies

TAGUIG City – Energy Secretary Alfonso G. Cusi today thanked the Senate Energy Committee chaired by Senator Sherwin T. Gatchalian and his colleagues for providing the Department of Energy (DOE) an opportunity to candidly discuss matters related to long-term solution to electricity supply shortages in yesterday's Committee hearing. 

The Senate inquiry, which lasted for more than six hours, facilitated the discussion of pressing power issues in aid of legislation. 

“We thank the Senate Committee on Energy for yesterday’s invitation. The DOE welcomed the hearing, in aid of legislation, so together we can craft measures to further strengthen energy supply security,” Secretary Cusi said.

According to Secretary Cusi, yesterday’s proceedings enabled the DOE to present the true state of the power situation that led to the recent Luzon-wide rotational brownouts.

“What we have right now is NOT a POWER CRISIS, but COMPLIANCE ISSUES,” Secretary Cusi declared as he pushed energy stakeholders to comply with the implementation of power-related policies. 

During the Senate hearing yesterday, Secretary Cusi explained that the main cause of the rotational brownouts was the forced or unplanned outages of several major power plants. The Energy chief also reiterated that there should be reserves which shall be provided by the National Grid Corporation of the Philippines (NGCP).

Unfortunately, he said, the DOE has found NGCP to be continuously remiss in its obligations under its franchise agreement, particularly in procuring Ancillary Services (AS) or power reservers.

Secretary Cusi added that another contributory cause to the power outages is the delay in the completion of transmission lines connecting Negros to Panay to Cebu; and Mindanao to the Visayas which could have facilitated the importation of more energy to the Island of Luzon.
 
“It has been frustrating. But at least, now we again have an opportunity to talk about this. Hopefully, this time, the Senate would appreciate what the DOE has been talking about all these years,” Secretary Cusi pointed out.

To improve the power situation, the Energy chief appealed to the legislators to consider what the DOE has been proposing – allow the government to engage in power generation. The intention is not to compete with private companies, but rather, augment the energy supply requirements when needed. 

He also sought the committee’s assistance to amend the NGCP’s franchise, as to revert to the government the system control of the grid for proper management of AS, as well as national cyber security, especially, since NGCP is a private corporation with substantial foreign ownership.
 
Secretary Cusi also recommended to take back from the NGCP the responsibility of preparing the Transmission Development Plan.

Overall, Secretary Cusi is still optimistic about resolving the electricity supply concerns.  “The power sector has a big responsibility on the country’s economic growth. I continuously call on our energy stakeholders to work together, comply with the policies and assure consumers of continued supply. Let us all be accounted in our shared responsibility of providing adequate energy supply to our countrymen,” Secretary Cusi concluded.

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