Phl, US join hands to bring down power rates

MANILA, Philippines - The Philippine government and the United States launched on Tuesday the Energy Policy and Development Program (EPDP) aimed at bringing down energy costs in Manila.

Funded by the United States Agency for International Development (USAID) and implemented by UPecon Foundation, Inc., the EPDP was launched by US Ambassador Philip Goldberg, National Economic and Development Authority (NEDA) Director-General Arsenio Balisacan and Energy Secretary Jericho Petilla.

The EPDP is a four-year P225-million project intended to strengthen the Philippine government’s capacity to formulate evidence-based policies and strategies for the cost-effective use of energy resources towards environmentally sound energy development.

“The Philippines has become one of the fastest-growing economies in Asia and represents new opportunities for trade and investment that create jobs. Crucial to this, businesses need stable supply and low-cost power to be competitive, while households need access to reliable and affordable electricity to be productive,” Goldberg said.

“This new partnership will help develop and promote knowledge, research and best practices in the energy sector that will be important to sustain the impressive growth achieved by the Philippines in recent years.”

EPDP will work to promote an energy policy and reform agenda. It will operate as an independent think tank that guides and informs policy and decision-making, and provides inputs to establish an academic and policy program at the University of the Philippines.

EPDP will also help inform private sector business strategies in ways that support sustainable economic development.

“The Philippine Development Plan Midterm Update 2011-2016 emphasizes the need for sustainable, reliable and efficient use of energy resources, as well as the development of environment-friendly energy technologies. The EPDP can provide invaluable guidance to stakeholders in the energy sector and policymakers in government in the crucial years ahead,” Balisacan said.

Key to advancing EPDP’s research agenda, the program will assist the UP School of Economics in developing links with US universities and institutions with expertise in the energy sector. It will include the University of Hawaii, Tufts University, Massachusetts Institute of Technology, International Food Policy Research Institute and University of California Energy Institute.

“The US government, through USAID, will continue to support the government of the Philippines’ efforts to reduce the high cost of electricity and promote access to affordable power,” said USAID mission director Gloria Steele.

Under the bilateral Partnership for Growth, both governments are addressing the most serious constraints to inclusive growth in the Philippines. EPDP contributes to this by fostering a more competitive business environment for the country through sustained and affordable energy supplies.

The National Statistical Coordination Board (NSCB) said electricity rates in the Philippines are among the highest in the region.

NSCB said that a study conducted by the Perth-based consultancy firm International Energy Consultants placed the rates in Luzon as having the ninth highest electricity tariffs of the 44 countries surveyed.

One of the main reasons for this is the absence of government subsidies for electricity, unlike in Indonesia, Thailand and Malaysia, where the government subsidizes electricity costs.

With the expected shortage of electricity by the summer of next year, President Aquino wanted Congress to grant him emergency powers to avert a looming energy shortage.

On Nov. 18, the House of Representatives approved a proposal granting Aquino the authority to provide for the establishment of additional power generating capacity to address an alleged projected electricity shortage in Luzon. – With Rhodina Villanueva