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Advocates Philippines
DOE To Propose Reforms Following Power Interruption On Panay
Photo credit PCO
In a press conference held on Friday, Energy Secretary Raphael Lotilla announced the Department of Energy's recommendation to Congress for policy reforms aimed at ensuring a continuous and stable electricity supply across the country. The proposal comes in response to recent power interruption incidents on Panay Island.
Lotilla expressed support for lawmakers and local officials from Panay Island, endorsing their call for a legislative investigation into the power interruption and a comprehensive review of the franchise granted to the National Grid Corporation of the Philippines (NGCP). The focus will be on ensuring the effective and efficient operation of the transmission network.
The DOE's recommendations to Congress include a review of the separation and transfer of the systems operation function from NGCP, emphasizing the transmission network provider function.
Additionally, the department aims to reassess the authority of the Energy Regulatory Commission (ERC) to impose administrative penalties on the transmission concessionaire, considering factors such as daily violations or non-compliance with regulatory rules and project delays.
Lotilla highlighted the need to review special tax privileges granted to NGCP, particularly the three percent franchise tax in lieu of all other national and local taxes.
The DOE aims to address power outages by facilitating the completion of both delayed and new transmission projects, emphasizing collaboration with NGCP on crucial projects like the Panay-Negros-Cebu backbone project and the Mindanao-Visayas Interconnection Project.
The ERC will conduct an investigation into the tripping of six power plants, and a technical analysis of the Panay grid will be undertaken to identify necessary enhancements.
Lotilla also emphasized the DOE's commitment to reviewing scheduled plant maintenance shutdowns to ensure a wider margin for regulation and contingency.
Lotilla expressed support for lawmakers and local officials from Panay Island, endorsing their call for a legislative investigation into the power interruption and a comprehensive review of the franchise granted to the National Grid Corporation of the Philippines (NGCP). The focus will be on ensuring the effective and efficient operation of the transmission network.
The DOE's recommendations to Congress include a review of the separation and transfer of the systems operation function from NGCP, emphasizing the transmission network provider function.
Additionally, the department aims to reassess the authority of the Energy Regulatory Commission (ERC) to impose administrative penalties on the transmission concessionaire, considering factors such as daily violations or non-compliance with regulatory rules and project delays.
Lotilla highlighted the need to review special tax privileges granted to NGCP, particularly the three percent franchise tax in lieu of all other national and local taxes.
The DOE aims to address power outages by facilitating the completion of both delayed and new transmission projects, emphasizing collaboration with NGCP on crucial projects like the Panay-Negros-Cebu backbone project and the Mindanao-Visayas Interconnection Project.
The ERC will conduct an investigation into the tripping of six power plants, and a technical analysis of the Panay grid will be undertaken to identify necessary enhancements.
Lotilla also emphasized the DOE's commitment to reviewing scheduled plant maintenance shutdowns to ensure a wider margin for regulation and contingency.
Jan 5, 2024
