Senate OKs bill seeking to reduce electricity cost
The Senate yesterday approved on third and final reading the proposed Energy Virtual One Stop Shop (EVOSS) Act of 2017, a measure that seeks to streamline the permitting process of energy generation projects and reduce the cost of power in the country.
Senate Bill 1439, principally authored by committee on energy chairman Sen. Sherwin Gatchalian, seeks to establish a technology and operations management software platform for all government entities to promote a unified permitting system.
“The streamlined procedure embodied by the EVOSS Act will boost competition in the energy sector and drive down power generation costs, ultimately resulting in consumer savings on monthly electricity bills. In essence, cutting the red tape tying down power plant projects is a winwin solution for everyone,” Gatchalian said.
“The permitting process to get a power plant off the ground takes as long as three and a half years. This legislation will eradicate the red tape in the process, which impedes the increase of the country’s energy supply,” he added.
He said the faster, simplified permitting process would allow foreign investors with the capacity to build cuttingedge power plants to enter the market and stimulate competition in the Philippine energy generation industry.
Under the bill, specified government agencies are given timeframes to release actions on applications.
For example, the Department of Energy (DOE) and all its attached agencies and offices would be given 60 days to release actions on applications.
On the other hand, the Department of Agrarian Reform and its attached agencies would be given 90 days while the Department of Environment and Natural Resources would have 75 days to act on the applications.
Failure of agencies to act within the specified timeframes would render applications to be deemed approved.
Government officers or employees who fail to comply with the set timeframes would be subjected to administrative penalties ranging from a 30day suspension without pay to dismissal and perpetual disqualification from public service.
Gatchalian explained that currently, developers of runof-river hydro plants in the country have to secure 359 signatures from 74 regulatory agencies and attached bureaus in a permitting process that takes around 1,340 days, or three and a half years, to complete.
He estimates the reduced generation costs could result in the reduction of consumer electricity prices by as much as P1 per kilowatthour (kwh). Pegged at the average household consumption rate of 200 kwh per month, this would result in savings of P2,400 per household every year.
The DOE will be responsible for the maintenance and modernization of the information technology and infrastructure system for the smooth operationalization of the EVOSS.
The measure also aims to eliminate overlapping mandates in documentary submissions, one of the main factors contributing to the lengthy application process, he said.