DOE mulls leasing power facilities from firms

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The Department of Energy is considering leasing the facilities of power generating firms in a bid to supplement power supply in light of the looming energy crisis next year.

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Energy Secretary Carlos Jericho Petilla told reporters recently that the rental rate contemplated for the use of the said facilities is pegged at $18 million to $20 million per year for two years.

“They (power firms) wanted the government to lease their facilities but the gas will be provided by the government. That arrangement is actually cheaper for the government,” he said.

While admitting that the move to lease power facilities is expensive, Petilla underlined that the effect of power outages on the economy would be steeper.

Meanwhile, the Energy Secretary explained that the Power Sector Assets and Liabilities Management Corp., the government agency tasked to privatize state-owned power assets, would facilitate the leasing process. Congress, on the other hand, would be tasked to determine the sources of funds for the lease.

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1 Comment

  1. This government and previous ones has done nothing to provide stable and adequate supply of electricity for the country.

    Leasing generating facilities owned by power generating facilities? Do you mean adequate power generating facilities are available to run even during peak loads? I just don’t understand the logic in this – the power generating facilities are there to provide electric energy – I am sorry but are they intentionally in collusion not to operate the plants in order to get higher price from the masses? Please Mr. Secretary Petilla, do tell and bear with me, I am slow.