Senator Leila de Lima's Interpellation Questions for DOE

BUDGET INTERPELLATION QUESTIONS FOR THE DEPARTMENT OF ENERGY (DOE) 1. The issue on the Beneco controversy stemmed from the fact that NEA appointed a general manager, Atty. Ana Maria Rafael-Banaag, who was unqualified for the post based on the qualifications set by the NEA itself. Upon resistance by the Beneco board and general assembly, NEA implemented an armed takeover of the offices of Beneco to physically dispossess the duly serving employees. There are also statements of support from the people of Baguio, including Mayor Benjamin Magalong, who stated that Beneco is being run properly and that there is no need for heavy-handed intervention from NEA. a. How does NEA intend to resolve this conflict especially now that it appears that NEA is in the wrong it its appointment of an unqualified general manager?

2. On the other hand, NEA has, in the recent past, supported the performing electric cooperatives like CASURECO III. Under the management of the Task Force Duterte Rinconada Power, CASURECO III had made notable improvements in its performance including a reduction in system loss, increased collection efficiency, and better financial status. Logic dictates that its distribution area remains under the control of CASURECO III. Under an electric cooperative, electrification will not be de-prioritized below profit. a. What is the position of NEA on the proposed Bicol Light and Power Corp franchise bill which seeks to wrest control of the distribution area from CASURECO III? The bill was recalled last January 2019 only to be refiled again during the 18th Congress.

3. It was recently reported that Zamboanga City has higher petroleum price than neighboring cities and provinces. Mayor Maria Isabelle Climaco asked for help from DOE but was merely told by Oil Industry Management Bureau Director Rino Abad to pressure fuel retailers in the city into lowering their prices.

However, Dir. Abad also admitted that the freight and operating costs in Zamboanga factored in its higher fuel prices. Without a direct import terminal with depot, Zamboanga City would be hard-pressed to force the local businesses to match the price on neighboring cities. a. In situations like these, is suspension of excise tax on fuel for distressed areas like Zamboanga City totally out of the question? Is the DOE willing to consider recommending such measure on limited application? What else can the DOE suggest to help cities like Zamboanga City which are heavily affected by the ongoing fuel inflation?