Department of Energy Secretary
July 2016 -Present
Energy Secretary Alfonso G. Cusi has more than four decades of leadership experience in both the private and public sectors. As a leader in the Philippine business sector, Cusi was engaged in the logistics and transportation industries.
He was the Chairman of the Batangas-based shipping company Starlite Ferries, Inc., which is spearheading the modernization of the domestic shipping industry with its recent acquisition of brand-new roll-on, roll-off (ro-ro) commercial vessels custom built in Japan.
He also founded and served as Chairman and President of various companies engaged in logistics and distribution, manning and crewing, maritime engineering as well as convenience stores.
Recognized as a good corporate steward, he also served as Board Member of the mining firm Intex Resources Philippines, Inc., a subsidiary of the Norway-based Intex Resources ASA.
Cusi started his career in the government service during the Arroyo administration, serving as General Manager of the Philippine Ports Authority (PPA) from February 2001 to July 2004. He was instrumental in the launch of the Strong Republic Nautical Highway that linked Luzon, Mindoro, Panay and Zamboanga del Norte in the country's western seaboard.
He also served as General Manager of the Manila International Airport Authority (MIAA) from August 2004 to March 2010. He initiated the opening of the mothballed NAIA Terminal 3 in 2008.
As Director General of the Civil Aviation Authority of the Philippines from March to December 2010, he laid the groundwork for the restoration of the Category 1 status of the Philippine aviation industry.
Cusi hails from Roxas town in Oriental Mindoro and from Cebu City. He earned his Bachelor of Science degree in 1972 from La Salle College in Bacolod, his Master’s degree in Business Administration in 1976 from the University of the Philippines-Cebu, and his Doctorate in Business degree, honoris causa, in 2008 from the Polytechnic University of the Philippines.
He was also the Vice-Chairman of PDP-Laban prior to his appointment as a member of the Cabinet.
Department of Energy
Licensed Chemist and Career Executive Service Eligible
July 2015 - June 2016
Secretary Zenaida Y. Monsada was appointed as the head of the Department of Energy (DOE) in October 2015, tasked to make key decisions and set priorities as well as execute operational management of the Department. Prior to her appointment as Secretary, she served as Undersecretary supervising four frontline Bureaus of the DOE, namely: the Electric Power Industry Management Bureau, Energy Resources Development Bureau, Renewable Energy Management Bureau, and the Oil Industry Management Bureau, where she held the Director position for more than a decade.
Secretary Monsada is a graduate of BS Chemistry from the University of San Carlos, Cebu City. She also earned units in MS Chemistry from UP Diliman, and Master in Public Management from the Development Academy of the Philippines. In addition, she had professional studies in Petroleum Management at the Arthur D. Little Management Education Institute in Boston, USA and the Norwegian Petroleum Directorate in Stavenger, Norway.
Hailing from a family of public servants, her first foray in the energy sector, prior to the deregulation of the downstream oil industry, was at the Energy Regulatory Board, the quasi-judicial oil price regulatory body.
As part of the DOE, she is a member of various inter-agency/international committees and working groups representing the DOE such as the Extractive Industries Transparency Initiative (Phil.), Tripartite Council for Biofuels, Technical Committee on Petroleum Products and Additives (Chair), Harmonization of Vehicle Standards and Regulations, and the Partnership for Clean Air/Clean Air Asia Initiative, to name a few.
Sec. Monsada led the creation of the DOE’s national petroleum testing laboratory and the acquisition/operation of the mobile testing facility. She also facilitated the 0institutionalization of the multi-sectoral advocacy campaign on the downstream oil industry, and was part of the “Benchmarking of Biodiesel Fuel Standardization in East Asia” of the Economic Research Institute for ASEAN and East Asia.
With her accomplishments, she was named Outstanding Alumni for Public Service by the Chemistry Department of the University of San Carlos in 2011 and Outstanding Alumni in the field of Science by the Saint Peter’s College Alumni Association in 2014.
Department of Energy
November 2012 - June 2015
Born to a political family in Palo, Leyte, he is the son of former Leyte Gov. Leopoldo E. Petilla and Palo Mayor Remedios L. Petilla, who also served as governor of the province and representative of the first congressional district of Leyte.
His effective governance during his term made him a Local Economic Development (LED) Champion as he instituted innovative practices focusing on Competitiveness and strong Public-Private Partnership, which led to the increase in growth rate in terms of trade and investment as well as tourism in Leyte. Focusing on the provision of basic services, he instituted various improvements in the province’s health care, education, and development infrastructures. His vast experience in information technology has also greatly benefitted Leyte through the improvement of government processes for better, more transparent, and efficient public service. These measures earned awards for Leyte, such as, “The Seal of Good Housekeeping” (October 2011) and the “Gawad Pamana ng Lahi Award” (October 2011) from the Department of Interior and Local Government; “Most Business Friendly LGU Award” (2011, 2010, 2008) from the Philippine Chamber of Commerce and Industry; and the “Hall of Fame - The Hospital Enhancement for Leyte’s Progress (HELP) Project” (2011) and “Hall of Fame - Presidential Award for Outstanding Leadership in Providing Quality Health Service to his Constituents from 2006-2010” (2010) from the Philippine Hospital Association throughout Sec. Petilla’s political stint in the province.
An excellent manager, Sec. Petilla was also given the task to head the Regional Development Council (RDC) and the Regional Peace and Order Council (RPOC) of Eastern Visayas which are crucial in setting economic and social targets and directions as well as ensuring peace, order and public safety in the whole region.
Sec Petilla also became an educator for a number of years at the Ateneo de Manila University and was a consultant for various companies in the Philippines and overseas.
Department of Energy
July 2010 - October 2012
Mr. Jose Rene Almendras was President of Manila Water Company prior to accepting his post as Secretary of the Department of Energy. His experience in the private sector spans 29 years. Throughout his career, Rene had assumed significant leadership roles in the top corporations within the country.
He started his corporate career at Citytrust Banking Corporation. He later moved to Citibank as Account Management Group Head in the Visayas in 1985. After his stint with Citibank, he was invited by the Aboitiz Group to be the Company's Treasurer for both the Aboitiz Company and Aboitiz Equity Ventures. He was eventually promoted as President of the group owned City Savings Bank. Under his leadership, this bank became one of the biggest in Cebu. In 2001, Rene joined the Ayala Group through Ayala Land Inc. He was appointed as CEO of Cebu Holdings Inc. and Cebu Property Ventures and Development Corporation. Later on, he assumed the role of Business Group Head for VISMIN ( Ayala Land ) and concurrently Operations Transformation Group Head of Ayala Land.
Landing his first CEO job as president of a bank at the age of 37 his reputation is known to some financial analysts and brokers for his success in driving the value of the companies he lead. As President of City Savings Bank he made it one of the most profitable in its category in the whole country. As President of Cebu Holdings share price and net profits increased significantly in the 5 years he lead the company.
In 2007, Rene was appointed to Manila Water Company as its Business Group Head. In his role, he transformed the customer service of Manila Water resulting to record breaking customer satisfaction rating ( as conducted by independent survey group). Two years later, he assumed the role of President of Manila Water. He was instrumental in setting the stage for the expansion and growth of the company . He also led the company to garner recognition both here and abroad. To name a few, the company had been consistently awarded as one of the Best Managed Companies in Asia, Best in Corporate Governance, one of the Greenest Companies in the Philippines and most recently, hailed as the world’s Most Efficient Water Company. To date, Manila Water continues to expand service in the East Zone and is now present in Vietnam, India, Australia, Laguna and Boracay.
Rene is now an acknowledged international resource person on Sustainable Development and leadership as evidenced by the long list of international speaking engagements in Asia, Europe, and the US. Known to be a staunch sustainability advocate and a leader in doing business at the base of the pyramid, as well as the triple bottom line of financial profits, social impact, and environmental protection, he is much more known and respected internationally than locally for these advocacies.
As a Leader, Rene believes in servant leadership. He leads to serve others. As passionate advocate of transformation through people development, he personally champions the development program of the people in the company. And as everyone in his team knows, at the core of all his actions and decisions as a leader is his value of “Integrity above all else”. To him, serving truthfully and honestly is the glue that binds people together, the anchor that allows companies to waver economic downturns and the foundation of genuine transformation.
Department of Energy
April 2010 - June 2010
Jose C. Ibazeta was appointed President and CEO of the Power Sector Assets and Liabilities Management (PSALM) Corporation by President Gloria Macapagal Arroyo in March 2007, and took his oath as Acting Secretary of the Department of Energy on 31 March 2010. Prior to these positions, he was designated Ambassador to Iraq and Special Envoy to the Middle East in-charge of Humanitarian and Reconstruction Efforts in Iraq from 2003 to 2005.
Under Mr. Ibazeta's stewardship, the privatization program of PSALM was accelerated. PSALM successfully bid out 34 power facilities that included five (5) IPPs and five (5) decommissioned plants as of December 2009. Among PSALM's achievements, noteworthy is the fact that twenty-two (22) of these power assets were privatized, through transparent and objective public bidding exercises, under Mr. Ibazeta's leadership. The proceeds from the successful sale of these assets were used to settle the outstanding debts of the National Power Corporation (NPC). Mr. Ibazeta likewise steered the successful implementation of PSALM's Liability Management Program. PSALM conducted successful fundraising activities through global bond offerings to finance IPP obligations and debt servicing requirements. PSALM's USD1 billion debut bond offering in the international credit market in May 2009 was acclaimed as "Best New Bond" in the annual Triple A Regional Awards conducted by the prestigious The Asset Magazine. PSALM was also named "Best Issuer" in the public sector for successfully completing its two bond offering transactions in May and November 2009. The November deal consisted of a new cash offering and a bond exchange offer that are intended to efficiently manage the government's power sector liabilities. The third award given to PSALM was for "Best Privatization" of the National Transmission Corporation (TRANSCO).
Mr. Ibazeta has a BS Economics degree from the Ateneo de Manila University as well as a Master's Degree in Business Administration from the University of San Francisco and an MBA in Banking and Finance from the New York University. He was president of A Soriano Corporation from 1990-1998, then served as a director and consultant to the chairman. He was director and treasurer of the International Container Terminal Services, Inc (ICTSI) as well as director of ICTSI Ltd, Anscor Consolidated Corporation, Anscor Property Holdings, Anscor-Casto Travel Corporation, Atlas Consolidated Mining and Development Company, Inc, Island Aviation, Inc, Multi-Media Telephony, Inc, Vesper Industrial and Development Corporation, A Soriano Air Corporation, Phelps Dodge International Philippines, Inc, Seven Seas Resorts and Leisure, Inc, and Phelps Dodge Philippine Energy Products Corporation.
Mr. Ibazeta is a member of the Finance Committee of the Ateneo de Manila University, as well as a member of the Board of Trustees of Radio Veritas.
Department of Energy
August 2007- March 2010
Sec. Angelo T. Reyes has been in public service for 45 years, holding key positions in government and military. He has had outstanding accomplishments both in the military and civilian service, among which were:
He led a campaign to dismantle a network of rebel camps, which had been surreptitiously set up by the Moro Islamic Liberation Front (MILF) amid ongoing peace talks
He became instrumental in crafting the National Internal Security Plan which has become the government's framework in addressing the root causes of insurgency through poverty alleviation, delivery of basic services and empowerment of the local government
He dismantled the major kidnap-for-ransom syndicates and neutralized their leaders when he was head of the National Anti-Kidnapping Task Force (NAKTF)
He has had several other significant accomplishments as AFP Chief of Staff, Secretary of the Department of National Defense (DND), Department of Interior and Local Government (DILG) and the Department of Environment and Natural Resources (DENR)
His Board chairmanship includes, among others, Presidential Task Force on Climate Change (PTFCC), National Anti-Environment Task Force (NAECTAF), National Water Resource Board (NWRB), National Solid Waste Management Commission (NSWMC) & Minerals Development Council (MDC),
He is also Board member of National Power Corporation (NPC), National Transmission Corporation (TRANSCO), National Development Company (NDC), National Economic & Development Authority (NEDA), National Disaster Coordinating Council (NDCC) & National Anti-Poverty Commission, among others.
He was recipient of numerous civilian and military awards and recognition, international and local, and has excellent academic record.
Department of Energy
March 2005 - July 2007
Prior to being appointed as Secretary of Energy, Mr. Raphael P. M. Lotilla was the President and Chief Executive Officer of the Power Sector Assets and Liabilities Management Corporation (PSALM). PSALM is the government corporation tasked to manage the privatization of generation assets, IPP contracts and other non-power assets, including the management of financial obligations and stranded contract costs of the state-owned National Power Corporation (NPC).
Before his appointment as PSALM President, Mr. Lotilla briefly served as PSALM Chief Operating Officer and was previously Deputy Director-General (DDG), with the rank of Undersecretary, of the National Economic Development Authority, from 1996 to January 2004. As DDG, he was designated as National Coordinator of the Philippine Council for Sustainable Development, where he pushed measures supportive of clean technologies and sustainable livelihoods, among other sustainable development advocacies.
Mr. Lotilla was also the supervising official of the secretariat of the Legislative-Executive Development Advisory Council (LEDAC), the advisory and consultative body to the Philippine President and the Legislature. He actively contributed in formulating the Executive Branch's position in the deliberations of Congress and the bicameral conference committee meetings. Among the legislative reform measures he was sought to help in crafting was the Electric Power Industry Reform Act of 2001.
Mr. Lotilla began his career in the academia as Assistant Professor of Law in 1985 at the University of the Philippines (UP) upon his admission to the Bar. He also served as UP's Vice-President for Public Affairs in 1991 and as Director of the Institute of International Legal Studies of the UP Law Center from 1989 to 1996. He was appointed Professor of Law in 1995. Prior to joining the government, Mr. Lotilla served as legal consultant to the Senate and the Senate Committee on Foreign Relations.
Mr. Lotilla holds undergraduate degrees in Psychology and History, a Bachelor of Laws degree from the University of the Philippines, and a Master of Laws degree from the University of Michigan Law School. As law professor, he taught courses including Constitutional Law, International Law, Corporation Law, Special Contract, Government Control of Businesses, International Economic Law, and Special Problems in Citizenship.
Mr. Lotilla hails from Sibalom, Antique, and served as Editor-in-Chief of the Philippine Collegian in 1983-1984.
Department of Energy
June 2001 - March 2005
Vince Perez was appointed by President Gloria Macapagal Arroyo in June 2001 at age 42 as the youngest Secretary of the Department of Energy.
Prior to the Energy post, Sec. Perez served briefly for three months as Undersecretary for Industry and. Investments at the Department of Trade and Industry and Managing Head of the Board of Investments.
Power Reforms became the battle cry under his tenure. Having faced three catastrophic grid as wide blackouts in his first year, Sec. Perez undertook a major overhaul of TransCo, such that there has been no Luzon grid wide black out since May 2002.
He oversaw the government's most comprehensive reorganization of various energy agencies with manpower reduction of more than 3,600 personnel. He jumpstarted the much-awaited privatization of the heavily indebted NPC with six plants successfully privatized so far.
He also navigated the delicate re-negotiations with more than 20 independent power producers, which generated $3 billion in future savings for the government.
He pushed for difficult power regulatory reforms, including removal of power rate subsidies, reflecting true cost of electricity and laid the foundation for a wholesale electricity market by 2006.
He accelerated rural electrification as part of President Arroyo's battle against rural poverty by energizing 6,634 barangays and sitios since 2001, more than the previous three administrations.
He pushed for efficiency in electric utilities, and for improved distribution service in various franchise areas such as Aklan, Bohol, Cebu, Masbate and Subic.
Energy Independence being one of the five major reform packages of the Arroyo Administration, Sec. Perez boosted the Philippines' energy self sufficiency from 45% in 2000 to 56% in 2004.
He renewed oil and gas exploration by launching the country's first petroleum bidding round with five service contracts awarded in the last 12 months, from none in the preceding six years.
He also aggressively promoted clean indigenous energy such as natural gas, and set a goal for the Philippines to become the world's largest geothermal power producer and Southeast Asia's leading wind power producer.
He initiated the development of alternative transport fuels for commercial use to reduce the country's dependence on imported oil.
He advocated consumer welfare and protection through intensified inspections of gas stations, campaigns on LPG standards and safety, and immediate implementation of the Meralco refund to marginalized electricity consumers. He re-launched an energy conservation campaign, promoted energy efficient lighting and mediated the scale down of the oil depots and the creation of Pandacan Linear Park.
He encouraged the oil companies to provide discounts on diesel fuel to public transport and immediately reflect downward international price movements in the local pump prices.
Sec. Perez actively promoted fresh investment in the energy sector, such that energy accounted for 70% of total investments registered with the BOI & PEZA in 2004.
Sec. Perez also played a key role in Philippine economic diplomacy, by forging strategic energy partnerships with China, India, Indonesia, Iran, Japan, Korea, Russia, Saudi Arabia, Thailand, the U.K. and the U.S., including ensuring adequate oil inventory during the Iraq war. He was elected the youngest chairman among his peers of both the ASEAN and APEC energy ministers meetings, and hosted the first ever ASEAN+3 energy ministerial meeting.
Department of Energy
March – June 2001
Signed Department Circular No. 2001-05-002, supplementary Implementing Rules and Regulations (IRR) implementing RA 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998," particularly Section 22 thereof.
Department of Energy
ENSURED ENERGY SUPPLY RELIABILITY FOR ECONOMIC GROWTH
The Department pushed for the restructuring of the electric power industry to encourage greater private sector participation. The Energy Industry Reform Act is now pending in the bicameral committees of both houses of Congress.
A total of 3,496 MW were added to the installed capacity with the completion of major power projects such as the 1,000 Sta. Rita FGPC natural gas power plant, 108 Duracom diesel-fired power plant, 600 MW Masinloc coal-fired power project (Units I and II) and the 1,200 MW Sual coal-fired thermal power plant.
Transmission line infrastructures were added to the system to strengthen the systems reliability and dependability. Additional line length projects reached an aggregate of 1,989 circuit kilometers.
ENSURED FAIR AND REASONABLE ENERGY PRICES
The following short-term measures were adopted to reduce rates:
About 44 electric cooperatives granted discounted rates benefiting over a million consumers in the rural areas.
National Power Corporation (NPC) developed several rate reduction schemes to cushion the impact of the economic slowdown that resulted in the dramatic decrease in electricity demand. It also implemented more stringent cost-cutting measures to generate savings to help stabilize power rates.
Technical support was provided by the National Electrification Administration (NEA) to rural electric cooperatives which enabled these coops to reduce their average loss from 17.3% in 1998 to 15.7% in 2000.
The Department tightened its watch over the oil industry with daily reviews of international market prices and monitoring of the various operations of local oil companies. Closely monitored were inventories and actual acquisition cost of both crude and product importations. The analyses of these variables/parameters were crucial in determining the reasonableness in the price adjustments of local oil firms.
INCREASED ENERGY SELF-SUFFICIENCY / DECREASED DEPENDENCE ON IMPORTED ENERGY
The country's energy self-sufficiency level rose from 40.8 percent in 1998, 43.5 percent in 1999 and 45.4 percent in 2000. The upswing production of geothermal energy from 8.9 MMFBOE in 1998 to 19.7 MMBFOE in 2000, together with improved stability of hydropower generation plants contributed greatly to the 2.7 percent improvement in self-sufficiency. Domestic production of energy reached 88.3 MMBFOE generating foreign exchange savings of US$1.8 billion in terms of displaced oil importations.
INCREASED PARTICIPATION OF THE PRIVATE SECTOR IN ENERGY DEVELOPMENT
The Malampaya Deep Water Gas-to-Power Project generated the largest investment in a single infrastructure project in the country to date. Shell Philippines Exploration B. V., together with its joint venture partners Texaco Philippines and Philippine National Oil Company – Exploration Corporation, is responsible for the upstream development with investments totaling US$2 billion. The project is expected to reduce the country's dependence in oil-based power generation by 30% in 2004 and will generate employment, foreign exchange savings, and substantial revenues to the national government.
Southern Energy Philippines, the largest independent power producer in Asia, poured in US$2.5 billion in investments in its various power projects totaling 2,550 MW in generating capacity.
Almost P13 billion were invested in the downstream oil industry. To date, there are 60 new players in the industry including foreign firms like PTT of Thailand, Liquigaz of Netherlands, Total of France, Petronas of Malaysia, and Coastal of the U.S. Most of the new players are into bulk marketing.
LAID THE GROUNDWORK FOR FURTHER DEVELOPMENT OF THE NATURAL GAS INDUSTRY
With technical assistance from the Asian Development Bank, the Department completed the Gas Sector Policy and Regulatory Project, which recommended a set of regulations governing pipeline construction and operation, gas and transport pricing, as well as technical and safety standards. It also conducted an analysis of the gas market potential and transportation costs, the results of which have indicated the feasibility of developing a transmission network from Batangas to Manila to serve industrial customers and new power plants.
The Department also signedd an implementation agreement with the Japan International Cooperation Agency for the conduct of the Masterplan Study for Natural Gas Utilization in the Philippines. The Study aims to promote the use of natural gas in various areas in the Philippines particularly in the Batangas-Manila-Bataan area, Cebu-Mactan in the Visayas, and Davao and Cagayan de Oro-Iligan corridor in Mindanao.
Funded by a grant from the New Zealand government, PNOC –Exploration Corporation worked on a study which focused on the technical and economic viability of a natural gas transmission and distribution system in southern Luzon.
ACCELERATED RURAL ELECTRIFICATION PROGRAM
Rural electrification, the direct and immediate contribution to the poverty alleviation program of the Estrada administration, is a flagship program of the Department. Dubbed "O Ilaw Program," the program consolidates the regular programs being undertaken by NEA/electric cooperatives, NPC SPUG, DOE and other agencies of the government like the DILG, DAR, DA with a complementary program which seeks to maximize participation of the private sector in rural electrification projects.
The two components under the complementary program are: 1) involving independent power producers or IPPs who will directly participate in electrifying barangays within their respective areas of operation; and 2) the Adopt-a-Barangay scheme where companies, NGOs, private individuals as well as bilateral and multilateral efforts could be harnessed.
ADMINISTERED BENEFITS TO HOST COMMUNITIES
The Department administers a special fund taken from power producers who contribute one centavo per kwh of power produced to give direct benefits to the province, city or municipality that hosts energy resource/energy-generating facilities. It amended certain provisions in the operational guidelines/regulations (ER 1-94) to accelerate rural electrification and address various concerns and issues raised by the recipients of the benefits. For the first two years of the Estrada administration, a total of P473 million was earmarked for the implementation of 607 projects approved. From July 1998 to October 2000, a total amount of P306 million was remitted to the LGUs to reduce cost of electricity and/or energize barangays and public buildings.
IMPLEMENTED COMMUNITY RELATIONS PROJECTS
Socially-responsive Independent Power Producers (IPPs) implemented livelihood projects to enable the communities where they operate to upgrade their quality of life. A few of these projects were : 1) Geothermal Agro-Industrial Demonstration Plant, 2) Manito Geothermal Livelihood Project, and 3) Training programs.
ACCELERATED THE LEADED GAS PHASE OUT IN METRO MANILA
The "Philippine Clean Air Act of 1999" (RA 8749) was enacted to introduce stringent pollution standards and provide the most comprehensive policies on the abatement, prevention and control of air pollution from industrial and transport sectors. A Memorandum of Agreement was signed by the Department with the major and new petroleum players in the phase out of leaded gasoline in Metro Manila. The phase out was nine months ahead of the mandated timetable of the Clean Air Act.
UTILIZED LOW GRADE COAL USING CLEAN COAL TECHNOLOGY
The Coal Briquette Business of PNOC – Coal Corporation, whose mandate is to develop coal as an indigenous energy source, was conceived in support of the government's resolve to preserve and protect the environment. The coal briquette was originally envisioned to replace fuelwood and charcoal, and therefore, eliminate the need to cut trees.
EXPORTED TECHNOLOGICAL EXPERTISE
PNOC – EDC's geothermal technology and expertise continued to gain attention both locally and internationally.
IMPLEMENTED THE NATURAL GAS UTILIZATION IN TRANSPORT PROJECT (NGUTP)
The Natural Gas Utilization in Transport Project (NGUTP) is a joint project of the Department, the Department of Science and Technology and PNOC. The first leg of the project was the conversion of an Isuzu Hi-lander AUV model to run from diesel to natural gas. The second leg of the project was the commissioning of the Philippines' first CNG Station in PNOC's gas power plant compound in Echague, Isabela.
Department of Energy
The revised guidelines on the Implementing Rules and Regulations of EO 215 was approved to allow greater private sector participation and investment in power generation activities, providing opportunities for private firms to build and operate and/or maintain bulk-power plants, cogeneration plants, and industry dedicated plants. It also offered greater incentives, such as tax holidays, exemptions from duties on imported equipment, relaxed local-hiring quotas, etc.
Three private power projects were completed in 1995 with a total installed capacity of 955 MW. These are the Malaya Thermal Power Plant 1 & 2, 650 MW (R-O-M), the Bauang, La Union Diesel Power Plant, 215 MW (B-O-T) and the Limay, Bataan Combined-Cycle Gas Turbine Power Plant "Block B", 90 MW (B-T-O).
The Department conducted seven regional workshops/consultations with local government officials, electric cooperatives and people's organizations, primarily to gather and discuss relevant issues in the formulation of a Strategic Action Plan for the Rationalization of Electricity Prices which culminated in a two-day "Summit on Electricity Wholesaling and Retailing."
With the discovery of natural gas and the possibility of tapping the resource for the Luzon grid for household consumption, a Natural Gas Office was created primarily to formulate a well-defined and cohesive development policy through the issuance of Department Circular No. 95-06-006.
The Demand-Side Management Program (DSMP) was instituted to influence customers' use of electricity and achieve the desired changes in the timing and level of power demand. Its implementation was intended to encourage optimal use of electricity resulting to a substantial increase in energy savings.
For implementing policies conducive to investment in the development of private power generation facilities, the country can now boast of being the first recipient of the prestigious McGraw-Hill's "Electric Infrastructure Development Award."
The energy sector started the implementation of the deregulation of the Downstream Oil Industry with the signing into law of Republic Act No. 8180 on 28 March. With its effectivity on 16 April, the tariff on oil imports was reduced and the non-pricing aspect of the industry was liberalized. This policy was aimed further at increasing the number of players and deconcentrating the downstream oil industry from the major oil companies.
The transition phase of the oil deregulation was started with the initial implementation of the automatic pricing mechanism (APM) wherein the wholesale posted prices of domestic petroleum products were automatically adjusted based on changes in the Singapore posted prices and the restructuring of oil taxes.
Various activities aimed at firming-up the Philippine natural gas industry were also undertaken. This move was geared towards the attainment of putting onstream energy facilities using environment-friendly fuels such as natural gas.
The country's total electrification level reached 68.8 percent resulting to total connections of 7.8 million. The government's rural electrification program made possible the extension of electricity services to additional 19 municipalities and 421 barangays with the 4 millionth connection located in Taglibi, Patikul, Sulu Province.
Four power plants with a total of 990 megawatts (MW) were commissioned which increased the installed generating capacity to 10,940 MW. The four power plants are: a) 700 MW Pagbilao coal-fired plant (Quezon); b) 40 MW MakBan E geothermal plant (Laguna); c) 200 MW Leyte "A" (Leyte); and d) 50 MW Mt. Apo geothermal plant (Cotabato).
Continuous promotion on the use of new and renewable energy systems (NRES) was pursued through the installation/dissemination of 453 cookstoves, 43 biogas units, 410 solar home systems, 15 PV streetlights, 21 PV battery chargers, 22 wind energy and 14 micro-hydro systems.
Programs to conserve energy were continuously undertaken. To sustain the activity in promoting awareness and institutionalize energy conservation and efficiency, the Power Patrol Program conducted one regional and seven city launchings which drew a total of 4,315 participants.
Another significant undertaking was the launching of energy standards and labeling program for room air-conditioners. A total of 88 models of room air-conditioner (RAC) units were certified, or about 293.3 percent higher than the 30 RACs targeted for the year. Furthermore, 206,927 labels were also validated which is about 172.4 percent above the 120,000 labels targeted.
As part of the social responsibility of the sector and pursuant to Section 5 (i) of RA 7638, the Department devised ways and means of giving direct benefits to the province/municipality/city/region that hosts the energy resource and/or generating facility. Accrued financial benefits for host communities totaled P392.2 million, while fund utilization of these benefits totaled P47.1 million. Likewise, total royalty expected to be given to the local government units (LGUs) based on the 1996 collection amounted to P72.6 million.
Total investments for the energy sector reached US$63.1 million. The bulk of fund or US$62.2 million was used to finance projects on electricity, US$.50 million for geothermal activities and US$.33 million for petroleum and coal projects.
One of the remarkable achievements of the Ramos administration was the elimination of the power crisis through government-guided private investor's participation in power supply activities. To date total installed capacity reached 11,752 MW, up by almost 70 percent from its 1992 level.
A major contributing factor that added to the country's supply reliability was the completion of interconnection projects among the major grids. The three (3) major interconnection projects completed were the Negros-Cebu, Leyte-Cebu, and the Leyte-Luzon Projects. These projects are expected to enhance the power stability in the Luzon and Visayas grids.
Geographical expansion was accomplished through rural electrification and expansion of petroleum downstream facilities. All municipalities/cities have been electrified increasing household electrification level by 11.0 percent or 72.0 percent for the year. The total refinery distilling capacity stood at 392 MBSD, 21.0 percent higher than the 1992 level of 299 MBSD.
The Department and other concerned government agencies together with electricity producers, distributors and consumers developed an action plan to rationalize electric prices. The strategy aimed to remove distortion in electricity prices to encourage efficient generation, distribution and consumption of electricity.
Attention was also given to the proper management of energy consumption. Strategies to influence demand included the institutionalization of energy conservation through public and private cooperation. It focused on consultancy and energy audits, energy utilization monitoring, training and education, formulation of energy efficiency standards and appliances labeling and improvements.
In pursuit of its mandate to acknowledge the right of communities as energy resource co-owner, the Department formulated and implemented necessary rules, guidelines and regulations on the provision of financial and other benefits to host communities of energy resources. To date, total accrued benefits reached P835.3 million while 178 projects were approved.
In fulfillment of the sector's commitment with respect to exploration, development and commercial use of cleaner fuels under the Philippine Agenda (PA) 21, low sulfur diesel, unleaded gasoline and high quality coal were introduced. This was complemented by the promotion of clean coal technologies and the imposition of stringent technical standards for geothermal, hydro and coal resource development projects.
The Department and its attached agencies participated in the energy cooperation programs and activities of the Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC), and the United Nations Development Program (UNDP), among others. The country assumed the Chairmanship and hosted the 15th AMEM-SOME (ASEAN Ministers on Energy Meeting – Senior Officials' Meeting on Energy) which drafted the agreement for the establishment of the ASEAN Center for Energy by 1999. The Center will serve as a catalyst for economic growth and development of the ASEAN region by initiating, coordinating and facilitating national as well as joint and collective activities on energy.
Department of Energy
1992 – 1994
RA 7638 was signed into a law which created the Department of Energy (DOE) in order to provide Cabinet-level representations of the energy policies and programs by various government agencies. The DOE also outlined the vision of the Ramos administration for the energy industry: private sector dominated and free-market oriented.
RA 7648, otherwise known as the Electric Power Crisis Act, enabled the President to enter into negotiated contracts for power plant construction and repairs based on a list of projects approved under the same law. Private power generation brought about 1,223 MW, bringing the generation capacity to almost 7,974 MW nationwide. Correspondingly, the reserve capacity deficit, which was at peak of 1,200 Mw was reduced and approached the required level of 750 Mw. The Voluntary Load Curtailment Program (VLCP) was carried out by major commercial and industrial establishments in coordination with the National Power Corporation (NPC) and the Manila Electric Company (MERALCO).
Commercial gas resources in the Camago-Malampaya field in northern Palawan of about 3 to 4 trillion cubic feet (TCF) were confirmed.
PETRON was privatized. The government retained 40 percent of the shares of stock of the company, while another 40 percent was sold to a strategic partner, the Saudi ARAMCO. The remaining 20 percent was sold through an initial public offering (IPO), thereby bringing in some 49,000 new Filipino stockholders in the company.
Department of Energy
February to December 1992
Office of Energy Affairs
Executive Order (EO) 172 created the Energy Regulatory Board (ERB) and consolidated its responsibilities to include all the regulatory and adjudicatory functions formerly exercised by the Bureau of Energy Utilization (BEU).
EO 215 amended PD 40 by allowing investors from the private sector to participate in power generation through such schemes as Co-generation, Build-Own-Operate (BOO), and Build-Operate-Transfer (BOT).
EO 193 provided for the creation of the Office of Energy Affairs (OEA) which replaced the Ministry of Energy. The OEA was tasked with the formulation, planning, monitoring, implementation and coordination of policies and programs in the field of energy.
EO 338 created the Energy Coordinating Council to strengthen and institutionalize the mechanism for the coordination of energy sector plans, policies and programs in an integrated manner.
The OEA introduced the small-scale coal-mining program, in line with the constitutional provision of small-scale natural utilization and to broaden the base of participation in coal exploration and development.
Started the commercial production of the country's fourth oil field, the Tara South, in offshore Palawan.
The first Solar Energy Cooperative was established in San Pascual, Burias Island, Masbate, to serve as the marketing organization for solar home systems.
The Camago-1 gas field was discovered with estimated reserves of 1.1 trillion cubic feet of gas and 37 million barrels of condensate.
Republic Act (RA) 6957 authorized the financing, construction, operation and maintenance of infrastructure projects by the private sector through the BOT scheme.
EO 422 created the Energy Operation Board for the efficient and equitable allocation of energy during crisis situations and as asn aftermath of the invasion of Kuwait by Iraq.
The West Linapacan oilfield was discovered with a projected initial production rate of about 15,000 to 20,000 barrels of oil per day.
The country's first BOT infrastructure, the 210 MW Hopewell gas turbine power generating facility, was inaugurated in January.
RA 7156 or the Mini-Hydroelectric Power Incentives Act authorized the granting of incentives and privileges to mini-hydro developers. It vested in the OEA the primary responsibility for promoting and administering mini-hydroelectric power development.
Promulgated Presidential Decree (PD) 87 or the Oil Exploration and Development Act which changed the system for oil exploration from the antiquated Concession System to the Service Contract.
Created the Philippine National Oil Company (PNOC) through PD 334 and mandated it to provide and maintain adequate and stable supply of oil. PNOC's scope of operation was later expanded through PD 938 to promote the exploration and development of oil and other indigenous energy resources.
A consortium of foreign and local firms struck the first oil discovery in offshore Palawan.
PD 972 or the Coal Development Act of 1976 established a coal development program to effectively explore and exploit coal reserves.
Commissioned the three megawatt (MW) geothermal pilot plant in Tongonan, Leyte, signaling the start of commercial use of geothermal energy for electric power in the country.
PD 1206 created the Ministry of Energy to rationalize and integrate energy policies and program implementation.
PD 1442 or the Geothermal Service Contract Law established the Service Contract system for geothermal exploration and development.
Started the commercial production of the country's first oil field, the Nido, at the rate of 40,000 barrels per day.
Started the first large-scale utilization of geothermal steam for power generation with the operation of the National Power Corporation's (NPC) geothermal power plants in Tiwi and Makiling-Banahaw.
Launched the Energy Conservation Movement through the issuance of Batas Pambansa (BP) 73.
Operated the 55-MW Cebu coal-fired power plant, the first large-scale power generation from domestic coal.
Started the commercial production of the country's second oil field in offshore Palawa, the Cadlao.
Commissioned the Tongonon and Palinpinon geothermal power plants, products of the joint efforts of all-Filipino staff of PNOC and NPC