BOI, DOE and PE2 meet anew to discuss EE guidelines for fiscal incentives
MAKATI CITY, 26 February 2020 – The Board of Investments (BOI), the Department of Energy (DOE) and the Philippine Energy Efficiency Alliance (PE2) held a meeting earlier today to discuss next steps relating to the energy efficiency guidelines to be drafted and issued under the fiscal incentives provision of Republic Act 11285, or the Energy Efficiency and Conservation (EE&C) Act, and its implementing rules and regulations.
BOI and DOE agreed that DOE will lead in the formulation of the specific guidelines. DOE indicated its preference to replace energy savings thresholds with another operational or financial indicator of the energy end-user, and that for all energy efficiency projects seeking BOI registration to be implemented by certified energy service companies (ESCO).
PE2 said that it maintains its preference for ESCOs to engage energy end-users across multiple sectors, such as commercial, industrial, transport and even government sectors, and that ESCOs of various financial capacities (large or MSMEs) and ESCO portfolio investors be qualified as BOI project proponents.
PE2 likewise hinted that the anticipated CITIRA law may reduce commercial viability of ESCO contract investments if the potential 3-year reduction in income tax holiday is not properly compensated by an alternative fiscal incentive that fits well with the ESCO business model.
BOI was represented by Governor Napoleon E. Concepcion, Director Raquel B. Echague who took over the Resource-Based Industries Service (RBIS), Director Nestor P. Arcansalin, who now heads the Investment Promotion Service and Dennis Jesus O. Panga, who now leads the energy investments team of RBIS.
DOE was represented by Director Patrick T. Aquino of the Energy Utilization Management Bureau (EUMB) and Artemio P. Habitan, who now heads the newly created Energy Efficiency and Conservation Program Management and Technology Promotion Department (EPMPD) under the EUMB.
The PE2 officers present during the meeting were president Alexander Ablaza, vice president for internal affairs Samuel West Stewart, vice president for external affairs Ruth Yu Owen, treasurer Theresa Acedillo Lapuz and member services and communications manager Luigi G. Eusebio.
Section 25 of the EE&C Act states: “Upon certification by the DOE, energy efficiency projects, as defined in this Act, shall be included in the annual investment priorities plan of the BOI and shall be entitled to the incentives provided under Executive Order No. 226, otherwise known as the “Omnibus Investments Code of 1987”, as amended, and any other applicable laws for ten (10) years from the effectivity of this Act: Provided, That after the aforementioned period, the inclusion of energy efficiency projects in the annual investment priorities plan shall be reviewed and may be extended by the BOI: Provided, further, That energy efficiency projects shall be exempt from Article 32(1) of Executive Order No. 226.
