Philippines Adopts Human Rights-Based Analysis for Energy Solutions

The Department of Energy (DOE) in the Philippines has prepared a human rights-based, multi-criteria decision analysis approach to help the government address energy issues in the country. Energy Undersecretary Felix William Fuentebella said Thursday the multi-criteria decision analysis examines whether the government's efforts serve the public by ensuring that energy is affordable, accessible, and consistent with the dignity and the basic needs of every household. The assessment is based on three key factors: access and affordability, reliability and resilience, and clean and sustainable energy. "So, access and affordability, we base it on the international law on human rights. Reliability and resiliency are based on economic rights and clean and sustainable energy. We base it on environmental rights," Fuentebella said at the sidelines of the 10th ASEAN Media Forum in Pasay City. "So, 'pag pinagsama-sama natin 'yung tatlo, ano 'yung pinakamagandang blend (So, we're looking at the best combination when those three factors are considered)," he added. Fuentebella shared the multi-criteria decision analysis is being shared with the Department of Economy, Planning, and Development (DepDEV), think tanks, as well as other nations. System loss Meanwhile, Fuentebella also assured electric corporations that DOE will not abandon them after President Ferdinand "Bongbong" Marcos Jr. called on Congress to amend the Electric Power Industry Reform Act (EPIRA) and put a stop to system loss charges. "We will never allow them to die," Fuentebella said. "We approach (the solution) with numbers and strategy." He added that DOE is looking at solutions to address the issues on the system loss. "How do we increase efficiency? How much do we need? What kind of solutions, engineering that we can provide? Are there going to be subsidies that need to be legislated? So, these are the combination of solutions that we can look at," the DOE official said. In his fifth State of the Nation Address on Monday, Marcos said he wants to remove the system loss charge, along with its corresponding value-added tax (VAT), from consumers' electricity bills. System loss refers to electricity or other utilities lost during distribution due to technical and non-technical factors. Current laws such as the EPIRA and Republic Act 7832, or the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act, allow distribution utilities to recover a portion of system loss from end-consumers through a system loss charge reflected in monthly electricity bills. However, tycoon Manuel Pangilinan, chairman and CEO of power distributor Meralco, has raised questions on who should shoulder the cost of system loss charges if these are removed from the bills of electricity consumers. "It is not a small matter… So, who's going to pay for that? The industry? It's going to cost tens of billions of pesos," he said. In a statement issued Tuesday, Meralco executive vice president and chief operating officer Ronnie Aperocho said that while the company respects Marcos' policy direction, "it is important to recognize that system loss is not unique to any distribution utility but is a common operational aspect of the delivery of electricity — which affects the entire power industry." — VDV, GMA News