Great expectations: Can DOE chief Popo Lotilla avert an energy crisis?

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In his previous stint as energy chief, Raphael 'Popo' Lotilla tackled an oil crisis and pushed for energy conservation measures, including a four-day government workweek. On his return to the DOE, he faces a looming energy crisis.

The annual oil bill then was $4.5 billion, while the Philippines’ foreign exchange reserves were at $17 billion. This meant that the government had to carefully choose how it uses its foreign exchange reserves.

It also prohibited the use of government vehicles on Sundays, legal holidays, or outside regular office hours. Government officials were barred from using state-owned vehicles outside authorized routes, and a ticket trip would have to be secured and displayed on the windshield – rules included in an administrative order that Arroyo issued in August 2005, as part of the government-wide energy conservation scheme.

The AO, which covered all government offices in the executive and government-owned and -controlled corporations, sought to impose additional measures to limit government use of fuel products.Executive Order 474 creating Philippine Strategic Oil, Gas, Energy Resources and Power Infrastructure Office The NGCP earlier told then-president Rodrigo Duterte that under the “worst-case scenario,” there will be 14 weeks of red alerts over the Luzon grid. The Visayas grid may face a worse situation and raise the red alert status up to 49 weeks.

Like many others, the Philippine Rural Electric Cooperatives Association said Lotilla’s appointment “could not come in a more opportune time than now.” He cited the country’s continued insufficient power supply because of the prolonged shutdowns and intermittent breakdowns of several coal fired power plants, and the derating of natural gas power plants due to Malampaya gas supply restrictions.

Maniego also called on Lotilla to affirm the Philippines’ commitment to clean energy – as envisioned in the country’s NDC under the Paris Agreement – by making the coal moratorium permanent.

 

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