25-08-04 Government agencies were directed to cut fuel and power consumption by 10 %, as part of the present administration's campaign to trim oil usage by 12 % to deal with high crude prices. President Arroyo presented her independence and savings program during the meeting of the Legislative-Executive Development Advisory Council (Ledac), where Malacanang only served coffee and tea as an austerity measure.
Overall, the Arroyo administration's campaign aims to achieve "energy savings of 23 mm barrels of oil equivalent, equal to a 12 % reduction in our oil importation (bill) and savings of $ 784 mm" yearly, Energy Secretary Vincent Perez told.

Arroyo added the Energy Efficiency and Conservation Program would lead to a decrease in carbon dioxide emissions by 5,000 Gigagrams.
"At the moment, they (savings measures) are all voluntary. We have not yet crossed the line on mandatory" measures, he said, adding "we will never consider gas rationing."
The country imports all of its oil requirements, and soaring crude prices have put pressure on consumer prices.
"We believe (high) oil prices are here to stay for quite sometime," Perez said. "Thailand has already launched a campaign and we are following suit."

To jumpstart the initiative is Arroyo's directive for government offices to trim their fuel and electricity consumption by 10 %, leading to savings of about 400 mm pesos a year, Perez said. Government pays P 2 bn a year for its electric consumption and another P 2 bn for fuel. A 10 % cut in fuel and electric consumption would translate to P 400 mm in savings, added Perez. Arroyo said these savings would be pooled together to finance other basic services.
To realize this, government offices would be asked to turn off air-conditioning starting at 4 p.m. and reduce lighting on lunch breaks. Shopping malls and movie houses would also be asked to shorten their business hours. Power plants, on the other hand, will be asked to improve their heat rate to conserve fuel.

Perez said that Arroyo, at the same time, challenged electric cooperatives to reduce their systems losses to single-digit level before 2010. Systems loss refers to the amount of energy lost during the transmission and distribution process due to poor facilities and theft. For his part, Perez said he would switch to a Japanese-built hybrid sedan to set an example, adding that government would study ways to promote hybrids including the lowering of import tariffs.
Government would also launch an information campaign to disseminate energy saving tips and promote a "car-less" day every week to encourage the ordinary public to car-pool with neighbours and friends or switch to public transport.

Other energy saving measures ordered by Arroyo:
-- A moratorium on the purchase of new government vehicles.
-- Strict implementation of the trip ticket rule on the use of government vehicles and imposition of severe penalties on unofficial or unapproved use of vehicles, including government ambulances.
-- Stricter monitoring of government motor pools, particularly on the allocation and issuance of gasoline.

Perez said government is not planning to subsidize fuel prices because it has learned from the experiences of Thailand and Indonesia, which are trying to recoup their losses when they subsidized fuel at a time of skyrocketing prices. He said the energy department will have seminars on driving habits, vehicle maintenance, and vehicle fuel economy. He said there will also be an intensified information campaign on fuel and electricity conservation.
The Department of Energy (DOE) is working with the Metropolitan Manila Development Authority (MMDA) for other fuel-saving measures such as identifying areas where vehicle owners could park their cars and use public transport onwards. He said other proposed energy saving techniques include using bicycle lanes and closing some gasoline stations early. The use of alternative fuel like coco-diesel and ethanol was discussed during the Ledac, he added.

Among the bills discussed duringthe meeting were the Transmission Corp. (Transco) franchise bills, natural gas bill, renewable energy bill, alternative transport fuel bill which promotes the use of ethanol for public transport, and LPG enforcement bill.
Sen. Juan Ponce Enrile said there may be no need to pass the Transco bill because Section 8 of the Electric Power Industry Reform Act (Epira) provides that within six months from the effectivity of the law, the transmission and sub-transmission facilities of the National Power Corp. (Napocor) and other assets related to transmission operations, "including the nationwide franchise of Napocor for the operation of the transmission system and the grid, shall be transferred to Transco."
Camarines Sur Rep. Arnulfo Fuentebella supported this view. Senate President Franklin Drilon said, however, it is best to seek the opinion of the Department of Justice (DOJ).

The legislators also suggested energy conservation measures such as better dispatching system for public buses, shortening of operating hours for malls, imposition of daylight savings time (Drilon); development of Liguasan Marsh, which is reputedly a natural gas and oil reservoir (Maguindanao Rep. Simeon Datumanong); corporatisation of generating assets to enhance value in preparation for eventual privatisation (Fuentebella); use of hybrid cars (Bukidnon Rep. Juan Miguel Zubiri); and bicycle lanes for Metro Manila (Makati Rep. Agapito Aquino).
Trade Secretary Cesar Purisima said the semiconductor industry proposed a 12-hour four-day workweek. Malacanang defended Perez against some senators' accusations of being "inutile", saying he has no control over global oil prices and other circumstances such as problems in pipelines, in the operation of the Russian supplier, and in China's increasing demand for oil.