Senate approves SB 1531 on final reading; PE2 reaches out to House leadership

  • Senate approves SB 1531 on final reading; PE2 reaches out to House leadership
    Senate approves SB 1531 on final reading; PE2 reaches out to House leadership

PHILIPPINE SENATE, February 5, 2018 – The Senate of the Philippines approved on 3rd and final reading in a plenary session earlier today Senate Bill no. 1531, otherwise known as An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, Granting Incentives to Energy Efficiency and Conservation Projects, and for Other Purposes.

During its Session no. 52, the Senate Secretary counted 18 affirmative votes in favor of the approval of the bill and zero negative votes when the Senate President Aquilino Pimentel III opened the floor for roll call votes through the motion of Senate Majority Floor Leader Vicente Soto III.

The approval of the energy efficiency and conservation (EE&C) bill on third reading followed the body’s approval of the measure on second reading on January 30, 2018.

The office of Senator Sherwin Gatchalian thanked the Philippine Energy Efficiency Alliance (PE2) for its continued inputs, review and support through the committee hearings, deliberations on the floor and plenary approvals. Senator Gatchalian also thanked his fellow lawmakers in the Senate for the 18-0 approval of the bill. "We sincerely thank our colleagues for their support. With its passage today, we are moving yet another step forward towards realizing efficient ways of utilizing energy in the country that are attuned to acceptable international standards," Gatchalian said.

PE2 president Alexander Ablaza said, “We are so encouraged by the urgency that the Office of Senator Gatchalian and the Senate Committee on Energy have assigned on Senate Bill 1531. The velocity of the legislative process sends a positive signal to market players, the ESCO industry and investors.”

Ablaza continued, “It is time for PE2 to shift our focus on the parallel process in the House. Yesterday, PE2 sent Speaker Pantaleon Alvarez an official request for an appointment to meet him, and explore how we could accelerate the process of the counterpart EE&C bill through the House Appropriations and Ways & Means Committees, and ultimately through the plenary readings, deliberations and approvals. The Alliance will continue to work closely with the prime movers of the bill, the House Committee on Energy, through its Committee Chairman Lord Allan Jay Velasco and Technical Working Group Chairman Reynaldo Umali.”

In the PE2 letter to Speaker Alvarez served on February 5, 2018, the Alliance highlighted the following points:

  1. Energy efficiency should be treated as the “first fuel” of the economy, being the cheapest, fastest and most untapped energy resource in our energy mix to slow down the rise in energy prices by deferring some 45,900 MW of energy infrastructure upgrades (power and non-power) through 2040. Shaving off up to 182 Mtoe in energy demand in the next 22 years can save our economy some PHP 36 trillion in energy purchases, grow GDP incrementally, create green jobs, increase tax revenues from energy savings, reduce dependence on imported fossil fuels, and contribute significantly to the regional energy intensity reduction targets of ASEAN and APEC, as well as our country’s obligations to the Paris climate agreement.
  2. PE2 believes that this EE&C bill deserves priority attention after its predecessor Batas Pambansa no. 73 lapsed in 1985, leaving the Philippines as possibly the only ASEAN country without a mandatory EE&C policy framework or fiscal incentives. While we understand that this bill has been repeatedly refiled since the 8th Congress, we are nonetheless encouraged by the growing public-private support for this legislation, that the House Committee on Energy has approved a Substitute Bill on August 14, 2017, and that the Senate Plenary has already approved on 2nd reading the counterpart bill (Senate Bill no. 1531) on January 30, 2018.
  3. For the Philippines to meet DOE’s 2040 annual savings target of 10,000 ktoe under its approved 2017-2040 EE&C Roadmap, an estimated PHP 12 trillion in investments will have to be made in EE&C technology deployment across end-use sectors. Almost two-thirds of this capital requirement will have to be financed from third-party sources such as energy service companies (ESCO), public-private partnerships (PPP), equity vehicles, and development or climate funds. Private sector capital investments will need to be made commercial-grade by increasing equity returns through “TRAIN-friendly” fiscal incentives provided under this pending EE&C bill. Otherwise, the bulk of the third-party capital flows will remain non-viable with unattractive after-tax project internal rates of return (IRR).

Join PE2 Now!

We would love to have you on board

The Philippine Energy Efficiency Alliance, Inc. (PE2) is a non-stock, non-profit organization of energy efficiency market stakeholders.

Learn More

PE2 Secretariat

  • Philippine Energy Efficiency Alliance, Inc. (PE2)
    19/F Philippine AXA Life Centre 
    Senator Gil Puyat Avenue 
    corner Tindalo Street 
    Makati City, Metro Manila 
    Philippines 1200
  • +63 2 759 6680 (ext 231)
  • secretariat@pe2.org