DoE shelves P100M nuclear safety study

The Department of Energy (DoE) has completely shelved its P100-million nuclear safety study and will instead channel the full amount to more important energy programs of the government.

Energy Secretary Jose Rene D. Almendras told the Inquirer that the bulk, or 40 percent, of the budget would go to the Fueling Sustainable Transport Program (FSTP). With the program, DoE hopes to reduce greenhouse gas emissions while providing cheaper alternatives to gasoline and diesel.

Another 30 percent is being used for the “strengthening of the Electric Power Industry Reform Act (Epira).”

“We say strengthening of the Epira, and not review of the Epira. This is about looking at how we can implement Epira better. We believe there are policy decisions that can still be made without having to change the law,” Almendras explained.

A portion of the P100-million budget will also be used to fund the activities of the steering committee handling open access and retail competition—a scheme in which large power users will be able to choose their own suppliers. At present, large power users may only avail of the services of the supplier that has jurisdiction over their respective areas.

This scheme is expected to spur competition among power stakeholders, resulting in better, more competitive electricity prices.

Lastly, the government set aside an amount for anti-smuggling activities—part of its efforts to protect the downstream oil industry.

Oil smuggling is a reality that has to be eradicated because it is costing the government anywhere from P30 billion to P60 billion in foregone collections, the energy chief earlier admitted. Smuggling is also one of the main reasons why pump prices are higher by as much as P5 a liter in certain areas, Almendras added.

The previous plan of allocating P100 million for the conduct of a nuclear safety study, which should have been completed within 18 to 24 months, was meant to give the government a better understanding of the current developments in the nuclear energy industry.

For instance, the trend now is toward smaller, packaged-type facilities.

It was also in line with the agreement that the Philippine government had signed with other Asean countries to develop a safety standard for nuclear power use in the region.

But because of the extensive damage wrought by an 8.9-magnitude earthquake on Japan’s Fukushima Daiichi nuclear complex last March, the Philippine government began having second thoughts about the program and considered scrapping the nuclear safety study.