MANILA, Philippines - The Aquino administration will prioritize efforts to address the power supply situation in Mindanao, Energy Secretary Jose Rene D. Almendras said yesterday.

In a power stakeholders’ meeting in Davao City, Almendras said the government is committed to find solutions to resolve the various power issues that currently confront Mindanao, mostly the power supply deficiencies experienced during the first quarter this year. 

In compliance with President Aquino’s directive, Almendras said the Department of Energy (DOE) will develop strategies on the three pillars of the energy sector: Energy security, energy pricing and responsive energy planning. 

Almendras said the DOE will monitor the performance of the industry stakeholders to ensure that private investors are assured of a level playing field. 

 “Walang lamangan, in local parlance. This will entice private investors to invest in the Philippine energy sector based on performance and capacity,” he said.

The energy chief said they will conduct more consultations and the recent meeting was part of the first leg of the process.

In the meeting the DOE - committed to finalize the draft implementing rules and regulations for a may 2010 circular that terminates the default wholesale supplier (DWS) arrangement for the wholesale electricity spot market (WESM) and issuance of a disconnection policy. 

The DWS arrangement was developed and promulgated by the DOE as an interim option for the first year of the WESM operation.  The objective was to ensure the supply of electricity to all electricity end-users will be continuous considering many distribution utilities have yet to prepare (technical and commercial requirements) to register with the WESM.

The circular terminated the DWS arrangement to relieve both National Power Corp. (Napocor) and Power Sector Assets and Liabilities Management Corp. (PSALM) from their designation as default power suppliers in Luzon where WESM is operational.

This is in view of the inability of Napocor and PSALM to economically and effectively perform their duties as DWS considering the privatization of Napocor power generating assets to-date has reached the 91.8 percent level.