Gatchalian warns proposed natural gas industry bill contains provisions that could harm consumers
September 29, 2024
Gatchalian warns proposed natural gas industry bill contains provisions that could harm consumers
Senator Win Gatchalian flagged certain provisions of a proposed measure to develop the country's natural gas industry, saying those provisions could prove detrimental to consumer interests.
Gatchalian emphasized that while he recognizes the good intent of Senate Bill 2793 or An Act Promoting The Development Of The Philippine Natural Gas Industry to achieve energy security and to encourage investment in the upstream oil and gas sector, certain provisions of the proposed measure need to be revisited.
He specifically highlighted Section 6 of the proposed measure, which allows for the 'full recovery of reasonable costs' incurred by power generators--a more lenient standard compared to the 'least cost' requirement outlined in the Electric Power Industry Reform Act (EPIRA).
The senator added the proposed measure should ensure that the Energy Regulatory Commission (ERC) can still protect consumers through the 'least cost' standard when reviewing power supply agreements.
In the provision of gas supply under Section 21, indigenous natural gas (ING) has a priority over imported natural gas and even electric power produced from ING has priority in generation, transmission, distribution, and supply, even if ING is more expensive than other sources. This is problematic because consumers will be forced to pay the higher price of electricity whenever ING is more expensive.
According to industry sources, the cost of pure liquified natural gas (LNG) at 10.5 US dollars per million British thermal units (MMBtu) corresponds to a levelized cost of energy (LCOE) rate of 7.07 pesos per kilowatt hour (kWh). On the other hand, a blend of LNG and indigenous natural gas (ING), priced between 11.8 to 13.5 MMBtu, corresponds to a rate of 8.4 pesos per kWh.
"Kailangan nating siguraduhin na ang bawat probisyon ng panukalang batas ay magbibigay ng proteksyon sa mga konsyumer at magpapalakas ng buong sektor ng enerhiya para lalong palakasin ang ating ekonomiya," he ended.
Babala ni Gatchalian: Ilang probisyon ng 'natural gas industry bill' maaaring makasama
Nagbabala si Senador Win Gatchalian sa ilang probisyon ng panukalang paunlarin ang industriya ng natural na gas sa bansa dahil maaari itong makasama sa kapakanan ng taong bayan.
Binigyang-diin ni Gatchalian na bagama't kinikilala niya ang magandang hangarin ng Senate Bill 2793 o An Act Promoting The Development Of The Philippine Natural Gas Industry upang makamit ang seguridad sa enerhiya at mahikayat ang pamumuhunan sa sektor ng upstream oil and gas, kailangan aniyang muling bisitahin at suriin ang ilang mga probisyon.
Partikular na binanggit ng senador ang Section 6 ng naturang panukala, na nagpapahintulot ng full recovery ng mga 'reasonable cost' ng mga power generator - isang mas maluwag na pamantayan kumpara sa 'least cost' na kinakailangan na nakasaad sa Electric Power Industry Reform Act (EPIRA).
Idinagdag pa ng senador na dapat tiyakin ng panukalang batas na mapoprotektahan pa rin ng Energy Regulatory Commission (ERC) ang mga konsyumer sa pamamagitan ng 'least cost standard' kapag sinusuri ang mga kasunduan sa power supply.
Sa probisyon ng suplay ng gas na nasa Section 21, may prayoridad ang indigenous natural gas (ING) kaysa sa imported na natural na gas at maging ang elektrisidad na mula sa ING ay may prayoridad sa generation, transmission, distribution, at supply, kahit na mas mahal ang ING kaysa sa ibang suplay. Maaari itong magdala ng problema dahil mapipilitan ang mga mamimili na magbayad ng mas mataas na presyo ng kuryente sa tuwing mas mahal ang ING.
Ayon sa industry sources, ang halaga ng purong liquified natural gas (LNG) sa 10.5 US dollars kada million British thermal units (MMBtu) ay tugma sa levelized cost of energy (LCOE) rate na 7.07 pesos kada kilowatt hour (kWh). Sa kabilang banda, ang halo ng LNG at indigenous natural gas (ING), na may presyo mula 11.8 hanggang 13.5 MMBtu, ay katumbas ng rate na 8.4 pesos kada kWh.
"Kailangan nating siguraduhin na ang bawat probisyon ng panukalang batas ay magbibigay ng proteksyon sa mga konsyumer at magpapalakas ng buong sektor ng enerhiya para lalong palakasin ang ating ekonomiya," pagtatapos niya.
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