Bicam okays one-stop shop for power investors
A BICAMERAL conference committee has approved the reconciled version of a landmark anti-red tape measure seeking to modernize and streamline the permitting process of power generation, transmission and distribution projects in the country.
The Senate Committee on Energy, led by Sen. Sherwin Gatchalian, and the House Committee on Energy, led by Rep. Lord Allan Velasco agreed to adopt Senate Bill 1439 or “The Energy Virtual One-Stop Shop Act of 2017” as the base of the reconciled bill.
“Passing this measure is quite timely, especially when inflation continues to hover around 6 percent as of November. We are optimistic that this bill is poised to drive down electricity costs and provide significant savings to power consumers by modernizing and streamlining the permitting process behind power infrastructure projects,” Gatchalian said.
In a nutshell, the bill will establish an online platform called the Energy Virtual One-Stop Shop (Evoss) where prospective developers can apply for, monitor, and receive all the needed permits and applications, submit all documentary requirements, and even pay for charges and fees.
Evoss will be managed and maintained by the Department of Energy (DoE), while its operations will be determined and monitored by the Evoss Steering Committee.
To further speed up the process, all government agencies involved will be required to follow a strict timeframe to act on pending applications. The failure of an agency to act within the prescribed timeframe will result in the automatic approval of the application and potential administrative sanctions against inefficient public officers to penalize the delay.
Private entities — the system operator and market operator — who fail to act within the prescribed timeframe will be slapped with a P100,000 fine per day of delay.
Gatchalian said the Evoss would encourage foreign investors with the capacity to build cutting-edge power plants to enter the market and stimulate competition in the Philippine energy generation industry. The increased competition would then drive down generation costs, according to the senator.
He estimated that the reduced generation costs could result in the reduction of consumer electricity prices by as much as P0.35 per kilowatt per hour. Pegged at the average household consumption rate of 200 kWh per month, this would result in savings of P840 per household every year.
“The elimination of red tape in the permitting process will go a long way toward rejuvenating our energy sector. It will remove a formidable barrier to entry that has often discouraged foreign firms from entering the generation market,” Gatchalian said.