Energy conservation: Antidote to high cost of imported fuel (Sabong News)
Author
Manila Bulletin
Date
MARCH 10 2022
Preoccupation with the shift to a new normal on account of the decline of Covid-19 infections may have deterred the government from paying more focused attention to the possible adverse consequences of the Russia-Ukraine conflict before its outbreak two weeks ago.
Continuing escalation of fuel prices — which has been ongoing since the start of the year — is one of the harsh outcomes. According to the Department of Energy’s projections, if the posted price of Dubai crude goes up to $120 per barrel, fuel prices will rise even further to these levels: gasoline, ₱78.53 per liter; diesel, ₱68.97 per liter; kerosene, ₱71.21 per liter; and ₱107.08 per kilogram. The raging conflict will certainly drive fuel prices even higher, thereby inflicting more pain upon a citizenry still reeling from the pandemic.
Energy conservation has again become an important concern, given the country’s heavy reliance on imported fuel.
In April 2019, President Rodrigo Duterte signed into law Republic Act 11285, the Energy Efficiency and Conservation Act. In the law’s preamble, it is stated that the State’s policy is “to institutionalize energy efficiency and conservation as a national way of life…to enhance energy supply security of the country, cushion the impact of the high price of imported fuels to local markets, and protect the environment in support to the economic and social development goals of the country.”
This event went largely unnoticed, considering that it occurred just before the 2019 mid-term elections. But even with another election now looming in the horizon, the heavy blows inflicted by runaway fuel prices on a struggling economy could not be overemphasized.
Following the Pareto principle, this law focuses on the biggest and largest users of fuel, called Type 1 and Type 2 establishments — with an annual energy consumption ranging from one million to two million liters. These firms are required to employ an Energy Conservation Officer (ECO) who shall “manage the energy consumption of facilities, equipment and devices, the improvement and implementation of energy efficiency measures, the conduct of regular energy audit, energy monitoring and control and the preparation of periodic energy consumption report(s).”
The DOE, together with the Department of Trade and Industry (DTI) requires appliance manufacturers, dealers and importers to comply with Minimum Energy Performance Standards (MEPS) and to display the energy label showing the energy requirement and consumption efficiency of covered products. A similar requirement has been imposed on transport vehicles and other fuel-using combustion equipment and electric devices.
Also being promoted is the formation of Energy Service Companies (ESCOs) that shall be accredited by the DOE to prepare and submit energy audit reports.
The DOE shall endorse projects that utilize pioneering energy efficient technologies to the Board of Investments (BOI) to avail of incentives for a period of five years upon the effectivity of law, including tax and duty free importation of pioneering energy efficient technologies; or income tax holiday.
The public expects the concerned government agencies to level up and exercise their mandate to promote energy conservation and efficiency.
