Transparency in devp't of energy plans sought

Energy industry experts called for transparency and wider participation in the development of the country's energy plans. Former socioeconomic secretary and director general of the National Economic and Development Authority (Neda) Cielito Habito said, “I'm joining the call for the Department of Energy (DoE) to open up the power development planning process.”

Habito who is considered the architect of the economic development program of the Ramos administration joined economist Maitet Diokno-Pascual and industry insider Dean de la Paz in calling for a participatory planning process to make the power sector more accountable and competitive.

The Forum on Responsible Energy for Global Competitiveness at the UP in the Visayas was organized by the UP College of Management, Worldwide Fund for Nature (WWF-Philippines) and Responsible Ilonggos for Sustainable Energy (RISE).

Dokno-Pascual presented a study that shows a flawed demand forecasting process results in overcapacity, expensive deals and higher electricity rates. The Philippines has now one of the highest electricity rates in Asia. From the independent power producers, De la Paz explained that their short term ten-year contracts with NPC push for higher 'take or pay' arrangements. Take or pay provisions make consumers pay for electricity they do not need or have not used.

“ The IPPs do not trust the figures of the DoE forecasts and there is a need to go beyond these abstract economic concepts, which don't reflect reality,” said de la Paz. “The participatory approach brings all stakeholders to the table, and bridges the disconnect that exists between government and the IPPs,” he added.

Melvin Purzuelo of RISE said that the Ilonggos should be proud they had started the multi-stakeholders power development planning. The process brought RISE with the electric cooperatives, PECO, Mirant, the city and provincial planning and development offices, academe, and business groups to the table in several workshops already undertaken. RISE protest the plan of Mirant and DM Consunji to establish two 100-MW coal-fired power plants in the province of Iloilo.

“ The participatory process will determine how much electricity we will need, when we need these, and what type of technologies would provide the least cost considering the environmental and health impacts,” Purzuelo said.