The Department of Energy is working on the development of a social development framework for the energy sector aimed at raising the quality of life of people at the “base of the pyramid”.
DOE Usec. Benito L. Ranque addresses participants to the Round Table Discssion on the Social Develoopment Framework for the Energy Sector. Also in photo is FIBECO Dir. Felix Vergara Jr.
The Base of the Pyramid (BoP) is the largest, but poorest socio-economic group. In global terms, this is the three billion people who live on less than say $2.50 per day
The idea is espoused by influential US business school academics CK Prahalad and Stuart Hart, who argue that companies can help eradicate poverty by providing goods and services for the 4bn people who live on less than $2 a day – this group is known as the base of the pyramid.
“We are now drawing up President Duterte’s vision for consumers especially lowering the rates for electricity and the eradication of brownouts,” Energy Undersecretary Benito L. Ranque told participants of the round table discussion on the development of a Social Development Framework for the Energy Sector hosted by the First Bukidnon Electric Cooperative Incorporated (FIBECO) 13 September 2016 at Maramag, Bukidnon.
A family takes dinner without electricity following a brownout in Cagayan de Oro City. (photo by Gerry Lee Gorit)
“We are here today in behalf of those households which cannot even afford the benefits of electricity, whose experience has been a cycle of one disconnection after the other, because of their incapacity to pay,” Ranque stressed. “Now that we have a president who understand the need for social development, let’s take advantage of this opportunity to take up the cudgels for these unfortunates whose plight may never have been discussed in the DOE, the ERC or in Congress.”
Ranque noted how the Philippines’ energy industry has made billions for a few which are ironically being paid for by millions who share very little of those profits.
DOE Usec. Benito L. Ranque joins a round table discussion for the creation of a Social Development Framework for the Energy Sector 13 Sept 2016 at FIBECO, Maramag, Bukidnon.
“Ideally, we are looking at how we can restructure this unfortunate situation perpetuated by the R.A. 9136 or Electric Power Industry Reform Act of 2001 (EPIRA) so those who earning billions from this industry share the profits which they keep for themselves instead of pursuing social development, and passing on risks to the government and consumers.”
Ranque requested Balay Mindanaw, a long-time development NGO partner, to organize the event with stakeholders from around the island including grassroots organizations, rural electric cooperatives, consumer organizations, energy think tanks and consultants.
“The idea here is to have a gathering of people who are passionate, knowledgeable about the sector, to have a round table discussion (RTD) where everyone is considered a resource, and who can guide us in our discussion,” said Charlito Manlupig, Balay Mindanao chair.
RTD Facilitator Ed dela Torre explains the mechanics of the RTD as Balay Mindanao Chair Kaloy Manlupig and Exec Dir Rochelle Mordeno listen.
“In coming up with a social framework for the energy sector, we wish to define the role of government in capitalizing on opportunities present in the industry, to promote social development, especially in the grassroots,” said Fr. Ed de la Torre, RTD facilitator.
Energy autonomy for Mindanao to allow Mindanaoans to determine their own energy future was a recurring theme for the wide range of proposals put forward by the participants in the ensuring discussions.
“It’s ironic how non-Mindanao residents have been deciding our energy future in Manila for so long,” observed David A. Tauli, president of the Mindanao Coalition of Power Consumers. “Allowing us to have first dibs at how our energy resources should be developed, distributed and priced is a huge step forward to helping more people have a say in determining their own future.”
“MCPC has been focused on trying to bring about a consumer-friendly regulatory environment. The Energy Regulatory Commission (ERC) which is supposed to protect the interests of the consumers has been captured by the energy players. They are biased in favor of the large players and have neglected the consumers,” Tauli added.
“We have been telling the past administration that the way to secure energy security in Mindanao is to develop our own indigenous power resources because we have enough and they can be developed cheaply. The hydroelectric power plants are keeping our rates low.”
Tauli said the MCPC’s development agenda includes the creation of the Mindanao Power Corp. (MINPOCOR) to develop large hydroelectric resources in Mindanao, and get local governments to develop small-scale RE projects, to ensure it remains cheap since the private sector players often imposes a very high rate of return.
Former 1-CARE Party List Rep. Edgardo R. Masongsong presents a comprehensive agenda for reforming the EPIRA.
Former 1-CARE Party List Representative Edgardo R. Masongsong presented a comprehensive plan to update the EPIRA including the creation of the MINPOCOR which would enable the people of Mindanao attain energy autonomy by operating the Agus-Pulangui hydroelectric complex (APHC) to bring down the cost of electricity in the island.
Another measure proposed was the active participation of energy stakeholders in determining their energy future through the creation of local energy boards within the franchise areas of power utilities. Such boards would continually update the franchise energy plan and enable DOE to have a more realistic “bottoms up” Philippine Energy Plan (PEP) that would precisely address the energy needs of residents, businesses and industries based on their actual needs at realistic, affordable prices.
The energy planning boards, already piloted in local legislations passed by the Cagayan de Oro City Council and Misamis Oriental Provincial Board, would also help reduce the backlog and workload of the overburdened ERC which only has eight hearing officers to determine the price setting petitions of 119 electric cooperatives, 16 privately owned utilities and five LGU-owned utilities, not counting additional cases filed by generation and transmission companies, residential, commercial and industrial consumers.
“Maraming problema, malaking problema. Why do we have the most expensive electricity in Asia?” Ranque asked. “A new Energy Code for the Philippines is a logical first step in the direction we can continue on. I am happy we are hosted by FIBECO which has a social conscience. I wish all our electric utilities also be like them.”
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