Department of Energy
1994-1998
1995
The revised guidelines on the Implementing Rules and Regulations of EO 215 was approved to allow greater private sector participation and investment in power generation activities, providing opportunities for private firms to build and operate and/or maintain bulk-power plants, cogeneration plants, and industry dedicated plants. It also offered greater incentives, such as tax holidays, exemptions from duties on imported equipment, relaxed local-hiring quotas, etc.
Three private power projects were completed in 1995 with a total installed capacity of 955 MW. These are the Malaya Thermal Power Plant 1 & 2, 650 MW (R-O-M), the Bauang, La Union Diesel Power Plant, 215 MW (B-O-T) and the Limay, Bataan Combined-Cycle Gas Turbine Power Plant "Block B", 90 MW (B-T-O).
The Department conducted seven regional workshops/consultations with local government officials, electric cooperatives and people's organizations, primarily to gather and discuss relevant issues in the formulation of a Strategic Action Plan for the Rationalization of Electricity Prices which culminated in a two-day "Summit on Electricity Wholesaling and Retailing."
With the discovery of natural gas and the possibility of tapping the resource for the Luzon grid for household consumption, a Natural Gas Office was created primarily to formulate a well-defined and cohesive development policy through the issuance of Department Circular No. 95-06-006.
The Demand-Side Management Program (DSMP) was instituted to influence customers' use of electricity and achieve the desired changes in the timing and level of power demand. Its implementation was intended to encourage optimal use of electricity resulting to a substantial increase in energy savings.
For implementing policies conducive to investment in the development of private power generation facilities, the country can now boast of being the first recipient of the prestigious McGraw-Hill's "Electric Infrastructure Development Award."
1996
The energy sector started the implementation of the deregulation of the Downstream Oil Industry with the signing into law of Republic Act No. 8180 on 28 March. With its effectivity on 16 April, the tariff on oil imports was reduced and the non-pricing aspect of the industry was liberalized. This policy was aimed further at increasing the number of players and deconcentrating the downstream oil industry from the major oil companies.
The transition phase of the oil deregulation was started with the initial implementation of the automatic pricing mechanism (APM) wherein the wholesale posted prices of domestic petroleum products were automatically adjusted based on changes in the Singapore posted prices and the restructuring of oil taxes.
Various activities aimed at firming-up the Philippine natural gas industry were also undertaken. This move was geared towards the attainment of putting onstream energy facilities using environment-friendly fuels such as natural gas.
The country's total electrification level reached 68.8 percent resulting to total connections of 7.8 million. The government's rural electrification program made possible the extension of electricity services to additional 19 municipalities and 421 barangays with the 4 millionth connection located in Taglibi, Patikul, Sulu Province.
Four power plants with a total of 990 megawatts (MW) were commissioned which increased the installed generating capacity to 10,940 MW. The four power plants are: a) 700 MW Pagbilao coal-fired plant (Quezon); b) 40 MW MakBan E geothermal plant (Laguna); c) 200 MW Leyte "A" (Leyte); and d) 50 MW Mt. Apo geothermal plant (Cotabato).
Continuous promotion on the use of new and renewable energy systems (NRES) was pursued through the installation/dissemination of 453 cookstoves, 43 biogas units, 410 solar home systems, 15 PV streetlights, 21 PV battery chargers, 22 wind energy and 14 micro-hydro systems.
Programs to conserve energy were continuously undertaken. To sustain the activity in promoting awareness and institutionalize energy conservation and efficiency, the Power Patrol Program conducted one regional and seven city launchings which drew a total of 4,315 participants.
Another significant undertaking was the launching of energy standards and labeling program for room air-conditioners. A total of 88 models of room air-conditioner (RAC) units were certified, or about 293.3 percent higher than the 30 RACs targeted for the year. Furthermore, 206,927 labels were also validated which is about 172.4 percent above the 120,000 labels targeted.
As part of the social responsibility of the sector and pursuant to Section 5 (i) of RA 7638, the Department devised ways and means of giving direct benefits to the province/municipality/city/region that hosts the energy resource and/or generating facility. Accrued financial benefits for host communities totaled P392.2 million, while fund utilization of these benefits totaled P47.1 million. Likewise, total royalty expected to be given to the local government units (LGUs) based on the 1996 collection amounted to P72.6 million.
Total investments for the energy sector reached US$63.1 million. The bulk of fund or US$62.2 million was used to finance projects on electricity, US$.50 million for geothermal activities and US$.33 million for petroleum and coal projects.
1997
One of the remarkable achievements of the Ramos administration was the elimination of the power crisis through government-guided private investor's participation in power supply activities. To date total installed capacity reached 11,752 MW, up by almost 70 percent from its 1992 level.
A major contributing factor that added to the country's supply reliability was the completion of interconnection projects among the major grids. The three (3) major interconnection projects completed were the Negros-Cebu, Leyte-Cebu, and the Leyte-Luzon Projects. These projects are expected to enhance the power stability in the Luzon and Visayas grids.
Geographical expansion was accomplished through rural electrification and expansion of petroleum downstream facilities. All municipalities/cities have been electrified increasing household electrification level by 11.0 percent or 72.0 percent for the year. The total refinery distilling capacity stood at 392 MBSD, 21.0 percent higher than the 1992 level of 299 MBSD.
The Department and other concerned government agencies together with electricity producers, distributors and consumers developed an action plan to rationalize electric prices. The strategy aimed to remove distortion in electricity prices to encourage efficient generation, distribution and consumption of electricity.
Attention was also given to the proper management of energy consumption. Strategies to influence demand included the institutionalization of energy conservation through public and private cooperation. It focused on consultancy and energy audits, energy utilization monitoring, training and education, formulation of energy efficiency standards and appliances labeling and improvements.
In pursuit of its mandate to acknowledge the right of communities as energy resource co-owner, the Department formulated and implemented necessary rules, guidelines and regulations on the provision of financial and other benefits to host communities of energy resources. To date, total accrued benefits reached P835.3 million while 178 projects were approved.
In fulfillment of the sector's commitment with respect to exploration, development and commercial use of cleaner fuels under the Philippine Agenda (PA) 21, low sulfur diesel, unleaded gasoline and high quality coal were introduced. This was complemented by the promotion of clean coal technologies and the imposition of stringent technical standards for geothermal, hydro and coal resource development projects.
The Department and its attached agencies participated in the energy cooperation programs and activities of the Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC), and the United Nations Development Program (UNDP), among others. The country assumed the Chairmanship and hosted the 15th AMEM-SOME (ASEAN Ministers on Energy Meeting – Senior Officials' Meeting on Energy) which drafted the agreement for the establishment of the ASEAN Center for Energy by 1999. The Center will serve as a catalyst for economic growth and development of the ASEAN region by initiating, coordinating and facilitating national as well as joint and collective activities on energy.