The new secretary of the Department of Energy (DOE) vowed to craft clear policies that will attract investments in the sector to achieve energy security.
“…I wanted to underline the President’s emphasis on a level playing field and promoting competition in order to attract investments. This is clear in his inclusion of EPIRA (Electric Power Industry Reform Act) amendments relating to the ERC (Energy Regulatory Commission) in his legislative agenda,” said Raphael Lotilla at yesterday’s Post-SONA (State of the National Address) Economic Briefing.
Lotilla did not elaborate.
EPIRA governs private sector operations of the country’s power sector from distribution, to generation and transmission while the ERC is the regulatory body responsible for power rates pricing in the Philippines.
Lotilla added to develop the country’s indigenous energy resources both renewable and conventional, uncertainties over investment incentives on the entire upstream sector, especially natural gas must be resolved.
“The uncertainty over the interpretation of Presidential Decree 87 allowing the service contractor’s corporate taxes to form part of the government’s 60 percent net share has hindered investments and roll out in this sector. The DOE will be submitting a clear articulation of that policy. To ensure a stable investments regime across different administrations, we will seek legislative articulation of that policy,” Lotilla said.
Lotilla listed the following as his key goals: continued provision of a well-targeted fuel assistance to the most vulnerable communities; nationwide electrification; improved planning and rolling out of the transmission grid; and the planning for necessary support infrastructure and liberalization of investment requirements for emerging power technologies.
