The Energy Efficiency and Conservation (EE&C) Act is now ready for full implementation following the signing of its implementing rules and regulations (IRR).
The Philippine Energy Efficiency Alliance (PE2) said the Energy Secretary Alfonso Cusi signed the IRR last November 22, two days before the six-month deadline set when the law was enacted.
Among the most notable sections of the IRR states the creation of a National Energy Efficiency and Conservation Office and an Interagency Energy Efficiency and Conservation Committee to push and facilitate the creation of energy efficiency plans and programs to secure sufficiency and stability of energy supply in the country to cusion the impact of high prices of imported fuels.
The IRR also provided fiscal incentives for energy efficiency projects to be included in the annual investment priorities plan of the Board of Investments for 10 years from the effectivity of the law and may be extended upon review.
Meanwhile, non-fiscal incentives for such projects are also provided in way of awards and recognition for innovations in energy efficiency and conservation best practices and provision of technical assistance from government agencies in the development and promotion of energy efficient technologies.
“DOE’s timely approval of the IRR is a welcome milestone that ensures that the EE&C Act, after 29 years of a voluntary energy efficiency market, is implemented responsively and without delay. We are pleased that DOE …reached out to other government entities, civil society and the private sector, and that DOE found useful most of PE2’s inputs through the IRR consultations,” said Alexander Ablaza, PE2 president.
The law will help in absorbing spikes in electricity and oil prices as it can defer new capital expenditure requirements for energy infrastructure capacity upgrades from generation, transmission and distribution apart from reducing dependence on imported fuel.