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The costs of energy and other energy-related products, particularly electricity and fuel, have risen dramatically due to frequent increases in oil prices in the domestic and world markets. With the aim of cushioning the effects of these increases on the domestic economy, the government has adopted policy measures to promote energy conservation and efficient use of energy by government agencies, including reduction in the consumption of fuel, electricity and other utilities, among others.

Available data from the records of the Manila Electric Company (MERALCO) indicates reduced electric energy consumption of 170 national government institutions in the first three quarters of 2005 from the same period in 2004. This could be a direct result of the compliance of government agencies to two administrative orders issued by the President in late 2004. The reduction in electric consumption translates to a 4 percent savings in megawatt hours, from 292,071 megawatt hours consumed from January to September 2005 in 2004 to 279,796 mega-watt hours for the same period in 2005.

Source : Manila Electric Company Electric Consumption and
Billing Accounts of Government Agencies As of October 31, 2005

Further, in September 2005, the Department of Energy started monitoring the implementation of the government’s energy conservation program among government agencies based on AO 126 issued in August 2005, which requires all government agencies, including government owned and controlled corporations (GOCCs), government financial institutions (GFIs), and their government corporate entities, and other instrumentalities to adopt additional measures to limit the use of petroleum product supplies to essential activities. The monitoring system compares the actual electric and vehicle fuel consumption of government institutions with their programmed consumption. The results indicate that from September 2005 to July 2006, national government agencies inspected by the DOE, have been generating from 8.8 percent to 21 percent less than the programmed monthly volume of electricity usage. The total cumulative electric consumption for the period reached 257,224 mega-watt hours, 14.7 percent lower than the total programmed consumption of 303,201 mega-watt hours for the same period. As a result, the government was able to conserve 44,591 megawatt hours, or a reduction amounting to Php 342,782 in the country’s elctricity expenses (Table 1), less than one year after the effectivity of the austerity measure.

Table 1
Electricity Consumption of National Government Agencies, Programmed vs. Actual
September 2005 to July 2006

Month/ Year	Agencies Monitored	Programmed  Consumption (mwh)	Actual Consumption (mwh)	Difference
				Levels (mwh)	Pesos	Percent (vol. Based)
Sept ‘05	97	31,535	27,585	3,950	29,922	12.53
Oct ‘05	97	35,735	30,303	5,432	41,601	15.20
Nov ‘05	97	35,643	30,879	4,764	36,977	13.37
Dec ‘05	92	35,817	29,088	6,728	52,157	18.79
Jan ‘06	98	31,510	24,911	6,599	50,741	20.94
Feb ‘06	103	32,336	26,212	6,124	45,786	18.94
Mar ‘06	98	30,290	27,532	2,758	21,483	9.10
Apr ‘06	91	21,577	18,319	3,258	25,180	15.10
May ‘06	74	16,807	14,858	1,949	15,375	11.60
June ‘06	68	17,663	16,111	1,553	11,986	8.79
July ‘06	57	14,290	11,427	1,477	11,573	10.34
Total		303,201	257,225	44,591	342,782	14.71

Source: Department of Energy

• Data as of August 2006
• Details may not add up to totals due to rounding

The DOE Report also showed lower actual fuel consumption than programmed for the same period. At the end of the 11-month period, about 358 thousand liters of gasoline and 1,197 thousand liters of diesel for government vehicles were saved by these agencies, translating to 11.9 percent and 15.8 percent decline in volume of gasoline and diesel fuel consumed, respectively. In value, this resulted to a cutback in government fuel expenses in the amount of 52.4 million pesos (Table 2a and 2b).

Table 2a
Fuel (Gasoline) Consumption of National Government Agencies, Programmed vs. Actual
September 2005 to July 2006

Month/ Year	Agencies Monitored	Programmed  Consumption (mwh)	Actual Consumption (mwh)	Difference
				Levels (mwh)	Pesos	Percent (vol. Based)
Sept ‘05	74	332,463	302,385	30,078	1,082,814	9.05
Oct ‘05	75	351,802	328,527	23,275	837,897	6.62
Nov ‘05	72	354,624	274,442	80,182	2,886,564	22.61
Dec ‘05	72	363,544	297,960	65,584	2,361,029	18.04
Jan ‘06	76	301,937	264,844	37,093	1,335,350	12.29
Feb ‘06	81	305,272	262,273	43,000	1,547,988	14.09
Mar ‘06	80	304,912	286,287	18,625	670,495	6.11
Apr ‘06	72	289,708	242,871	46,837	1,686,118	16.17
May ‘06	62	220,905	211,221	9,684	348,631	4.38
June ‘06	60	228,556	207,619	20,937	872,803	9.16
July ‘06	55	175,804	166,078	9,726	402,704	5.53
Total		3,229,528	2,844,504	358,022	14,032,393	11.92

Source: Department of Energy

• Data as of August 2006
• Details may not add up to totals due to rounding

 

Table 2b
Fuel (Diesel) Consumption of National Government Agencies, Programmed vs. Actual
September 2005 to July 2006

Month/ Year	Agencies Monitored	Programmed  Consumption (mwh)	Actual Consumption (mwh)	Difference
				Levels (mwh)	Pesos	Percent (vol. Based)
Sept ‘05	68	347,184	349,286	(2,103)	(65,186)	(0.61)
Oct ‘05	69	343,965	316,850	27,115	840,570	7.88
Nov ‘05	65	326,919	302,462	24,458	758,186	7.48
Dec ‘05	64	356,779	352,358	4,421	137,036	1.24
Jan ‘06	71	1,009,135	992,081	17,054	532,385	1.69
Feb ‘06	76	1,015,144	910,524	104,621	3,246,947	10.31
Mar ‘06	77	958,054	638,289	319,765	9,916,423	33.38
Apr ‘06	68	881,389	645,410	235,980	7,319,069	26.77
May ‘06	61	804,893	548,639	256,254	7,947,578	31.84
June ‘06	54	774,961	681,290	93,671	3,441,747	12.09
July ‘06	51	757,015	640,881	116,135	4,295,209	15.34
Total		7,575,439	6,378,069	1,197,369	38,369,963	15.81

Source: Department of Energy

• Data as of August 2006
• Details may not add up to totals due to rounding

 

Sources: Department of Energy and Manila Electric Company

 

 

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