AN energy-efficiency measure must be signed within the first quarter of the year if the country wants to realize P37.8 trillion in energy savings until 2040.
The Philippine Energy Efficiency Alliance (PE2) on Thursday stressed the importance of the Energy Efficiency and Conservation Act, which is in the process of transmittal to President Duterte for approval.
PE2 President Alexander Ablaza said delays in the passage of the bill push back the effects of mandatory EE&C implementation, specifically dampening the rise in energy prices.
“Our energy market badly needs to arrest the business-as-usual escalation of electricity tariff and fossil fuel prices, and a further delay in the implementation of energy-saving projects, programs and investments will only serve to delay their decelerative effects on energy price increases,” Ablaza said.
He said a scaled-up energy efficiency program slows energy price escalations because it allows players to defer new capital expenditure requirements for energy infrastructure capacity upgrades from generation, transmission and distribution, and also reduces the forecast rise in dependence on imported energy.
Every month of delay in passing the EE&C measure deprives the entire economy of a chance to benefit optimally from the P37.8 trillion in energy savings estimated through 2040, he said.
“This means that households, small businesses, buildings, industries, public facilities and other energy end-use sectors stand to collectively save less than P37.8 trillion in avoided energy purchases between now and 2040 if the passage of the EE&C Act slips beyond this first quarter of 2019,” he said.
Ablaza stressed that the Philippines has had no energy efficiency law for over 28 years, and is the last among the Asean nations to enforce EE&C through legislation and catalyze EE&C investments through fiscal incentives.
“The EE&C bill had a 28-year history of being refiled since the 8th Congress. The country cannot afford to prolong this delay,” he said.
The Bicameral Conference Committee earlier convened to reconcile the disagreeing provisions of Senate Bill 1531 and House Bill 8629 and approved the EE&C Act in January.
The committee agreed to reanchor the fiscal incentives provision on existing Executive Order 226, otherwise known as the Omnibus Investments Code of 1987, as amended.
It, however, considered the last-minute recommendation of the Department of Finance (DOF) to reduce the period of mandatory inclusion of energy-efficiency projects in the investment priorities plan of the Board of Investments from the House-proposed 15 years to an adjusted 10 years.
The Senate panel said this adjustment reflects a reasonable balance between the incentive rationalization objectives of the DOF and the requirements of private investors.
Both also agreed to exempt energy-efficiency investments from Article 32(1) of EO 226, thereby enabling foreign-owned projects to avail themselves of fiscal incentives.