A labor group on Wednesday challenged the Energy Regulatory Commission (ERC) and Department of Energy (DOE) to disclose their power supply data, saying that a lot of available power is being concealed amid allegations of an impending power shortage in 2015.
The Trade Union Congress of the Philippines-Nagkaisa said the ERC has not spoken about an impending power shortage in 2015, even as the DOE is all over the place announcing a 300 megawatt deficit that can climb to 800 megawatt.
“We stressed the importance of correct data in undertaking power policy. If DOE has incorrect data, then the wrong arguments are being advanced and that’s is why fale solutions which are very expensive such as gas turbines, power barges, and generator sets are now being prioritized,” the TUCP said in a statement.
TUCP-Nagkaisa said DOE’s proposal of contracting P12 billion of capacity—300 megawatt genset or power barge plus 300 megawatt reserve—would mean a 50-centavo per kilowatt hour increase to be borne by consumers nationwide for two years.
“We warned that an increase in the price of power is sure to create an inflationary domino effect. Power is not a “stand alone” issue,” the TUCP said.
“Take the matter of workers disposable incomes which are constantly being erode by high price of power. A 24-month period where power rates are jacked up by 50 centavos per kilowatt hour which does not yet factor in additional generation, transmission and distribution charges is sure to wreak havoc on the already meager salaries of workers. It will surely trigger an increase in the prices of basic goods and services, we will be left with no other response except to seek an increase in wages.” - By Vito Barcelo / Manila Standard
Showing posts with label Energy Regulatory Commission ERC. Show all posts
Showing posts with label Energy Regulatory Commission ERC. Show all posts
Thursday, September 25, 2014
Thursday, September 18, 2014
‘Why rent power for 2 years when it’s needed only for 3 months?’
While the House of Representatives is ready to grant emergency powers to President Benigno Aquino III to deal with a looming power crisis next year, House Majority Leader Neptali Gonzales II on Wednesday asked Malacañang to justify the necessity of releasing public funds to pay for the lease of additional generating capacity.
Renting power from an outside source is one of the options presented by the Department of Energy to Aquino and Congress to address the power crisis expected to hit the country in the summer of 2015.
“Our problem is how do we justify this rental? They say we have to rent [the additional generating capacity] for a minimum of two years but we’d only need it for three months. Will it be right to ask the people to shoulder P6 billion for additional power you’d need for only three months next year? That’s a bit steep (Medyo mabigat ata ‘yun),” Gonzales said.
Aquino has asked Congress to grant him emergency powers to contract additional generating capacity to avert a potential power crisis next year, citing as basis Section 71 or the Electric Power Crisis Provision under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA).
Oriental Mindoro Rep. Reynaldo Umali, chair of the House energy panel, said the government would spend some P6 billion to generate additional capacity for the Luzon grid since the minimum lease period for contracting companies was two years.
DOE Secretary Carlos Jericho Petilla said the government is eyeing sourcing the amount from the accumulated royalties from the Malampaya gas-to-power facility.
No price hike
Gonzales said Malacañang should specify the parameters of the emergency powers the President was seeking because it is difficult for the House to draft a joint resolution based solely on Aquino’s request.
“What we have received is a [formal] communication from the President but we don’t know what exactly he is asking for,” he said.
The Majority Leader said emergency powers that would be granted to Aquino should not result in higher electricity prices for consumers.
Gonzales said that while giving Aquino the authority to contract additional generating capacity was one of the options provided in the EPIRA for addressing a potential power shortfall, there were also other steps the government could take to increase power in the Luzon grid.
"Even without emergency powers, the government has the capacity through the DOE and ERC (Energy Regulatory Commission) to assess the situation," he said.
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) has said it would support Aquino’s request for emergency powers on the condition that it would not drive up electricity rates.
“We insist that the DOE now present their tariff simulations and cost-impact scenarios to the public so we will know what to do,” said TUCP Executive Director Luis Corral said in a statement. — NB, GMA News
Renting power from an outside source is one of the options presented by the Department of Energy to Aquino and Congress to address the power crisis expected to hit the country in the summer of 2015.
“Our problem is how do we justify this rental? They say we have to rent [the additional generating capacity] for a minimum of two years but we’d only need it for three months. Will it be right to ask the people to shoulder P6 billion for additional power you’d need for only three months next year? That’s a bit steep (Medyo mabigat ata ‘yun),” Gonzales said.
Aquino has asked Congress to grant him emergency powers to contract additional generating capacity to avert a potential power crisis next year, citing as basis Section 71 or the Electric Power Crisis Provision under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA).
Oriental Mindoro Rep. Reynaldo Umali, chair of the House energy panel, said the government would spend some P6 billion to generate additional capacity for the Luzon grid since the minimum lease period for contracting companies was two years.
DOE Secretary Carlos Jericho Petilla said the government is eyeing sourcing the amount from the accumulated royalties from the Malampaya gas-to-power facility.
No price hike
Gonzales said Malacañang should specify the parameters of the emergency powers the President was seeking because it is difficult for the House to draft a joint resolution based solely on Aquino’s request.
“What we have received is a [formal] communication from the President but we don’t know what exactly he is asking for,” he said.
The Majority Leader said emergency powers that would be granted to Aquino should not result in higher electricity prices for consumers.
Gonzales said that while giving Aquino the authority to contract additional generating capacity was one of the options provided in the EPIRA for addressing a potential power shortfall, there were also other steps the government could take to increase power in the Luzon grid.
"Even without emergency powers, the government has the capacity through the DOE and ERC (Energy Regulatory Commission) to assess the situation," he said.
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) has said it would support Aquino’s request for emergency powers on the condition that it would not drive up electricity rates.
“We insist that the DOE now present their tariff simulations and cost-impact scenarios to the public so we will know what to do,” said TUCP Executive Director Luis Corral said in a statement. — NB, GMA News
Wednesday, September 17, 2014
Senators to Palace: Don’t rush us
ON GRANTING AQUINO EXTRA POWERS
CONGRESS is not likely to pass a joint resolution giving President Benigno Aquino 3rd special powers anytime soon because senators want to thoroughly study the matter first.
Sen. Sergio Osmena 3rd, who heads the Senate Committee on Energy, on Tuesday said the Senate will not grant extra powers to the President just because he said so or because the Department of Energy (DoE) recommended it.
“We all know what happened in 1992, so we have to be very careful about what type of powers we will extend to them,” Osmena noted, referring to the granting of special powers to then-President Fidel Ramos that led to high cost of electricity.
It was Energy Secretary Jericho Petilla, during a budget hearing of the Senate committee on finance, who informed the senators that Congress needs to pass a joint resolution giving Aquino emergency powers by the end of the month.
The President sent letters to the Senate and the House of Representatives on Monday requesting immediate enactment of the joint resolution authorizing him to establish additional generating capacity in accordance with Section 71 of the Electric Power Industry Reform Act of 2001 or the Epira law.
Section 71 of the Epira allows the President, upon determination of imminent shortage of supply of electricity and with joint approval of Congress, to search for additional generating capacity under approved terms and conditions.
Osmena said the executive should not rush Congress into enacting the resolution.
He recalled that he has been telling the Department of Energy (DOE) since 2011 about a looming power crisis but nobody listened to him.
He added that Petilla even said in May that the country will have no brownouts next year.
“Then they send a letter to us and they want it acted upon by the end of this month? No sir!” Osmena said.
The senator added that he wants the DOE to provide more details because based on his estimates, the establishment of additional generating capacity would hike power rates to P15 per kilowatt hour or even as high as P20 per kwh.
Senate President Franklin Drilon agreed that it is impossible to have the resolution approved by the end of September because the Senate has not been given the draft.
“We don’t know the parameters of the authority being requested. We know the urgency, but we can’t rush into this,” Drilon pointed out.
The Senate chief, however, gave assurances that the chamber will work as fast as it can but they cannot rush the enactment because the issue is complicated.
The Senate only has four sessions left before it goes on a three-week recess starting on September 27.
TUCP support
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) also on Tuesday said it will support the grant of extra powers to the President as long as proposed solutiosn will not drive up electricity rates.
The group also called for a revamp at the Power Sector Assets and Liabilities Management Corp. (PSALM) and the Energy Regulatory Commission (ERC).
“TUCP-Nagkaisa will support the President but the solutions proposed should not punish workers and their families with an increase in power rates. We insist that the DOE now present their tariff simulations and cost-impact scenarios to the public so we will know what to do,” TUCP Executive Director Luis Corral said.
TUCP spokesman Alan Tanjusay said some of the solutions to the impending power shortage involve purchase of gas turbines and diesel-powered generation sets.
According to Tanjusay, the purchase of the turbines and sets will drive power rates up.
He accused PSALM of criminal negligence for not including in its budget the case of illegally terminated workers of the National Power Corp. - by JEFFERSON ANTIPORDA REPORTER Manila Times With JING VILLAMENTE
CONGRESS is not likely to pass a joint resolution giving President Benigno Aquino 3rd special powers anytime soon because senators want to thoroughly study the matter first.
Sen. Sergio Osmena 3rd, who heads the Senate Committee on Energy, on Tuesday said the Senate will not grant extra powers to the President just because he said so or because the Department of Energy (DoE) recommended it.
“We all know what happened in 1992, so we have to be very careful about what type of powers we will extend to them,” Osmena noted, referring to the granting of special powers to then-President Fidel Ramos that led to high cost of electricity.
It was Energy Secretary Jericho Petilla, during a budget hearing of the Senate committee on finance, who informed the senators that Congress needs to pass a joint resolution giving Aquino emergency powers by the end of the month.
The President sent letters to the Senate and the House of Representatives on Monday requesting immediate enactment of the joint resolution authorizing him to establish additional generating capacity in accordance with Section 71 of the Electric Power Industry Reform Act of 2001 or the Epira law.
Section 71 of the Epira allows the President, upon determination of imminent shortage of supply of electricity and with joint approval of Congress, to search for additional generating capacity under approved terms and conditions.
Osmena said the executive should not rush Congress into enacting the resolution.
He recalled that he has been telling the Department of Energy (DOE) since 2011 about a looming power crisis but nobody listened to him.
He added that Petilla even said in May that the country will have no brownouts next year.
“Then they send a letter to us and they want it acted upon by the end of this month? No sir!” Osmena said.
The senator added that he wants the DOE to provide more details because based on his estimates, the establishment of additional generating capacity would hike power rates to P15 per kilowatt hour or even as high as P20 per kwh.
Senate President Franklin Drilon agreed that it is impossible to have the resolution approved by the end of September because the Senate has not been given the draft.
“We don’t know the parameters of the authority being requested. We know the urgency, but we can’t rush into this,” Drilon pointed out.
The Senate chief, however, gave assurances that the chamber will work as fast as it can but they cannot rush the enactment because the issue is complicated.
The Senate only has four sessions left before it goes on a three-week recess starting on September 27.
TUCP support
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) also on Tuesday said it will support the grant of extra powers to the President as long as proposed solutiosn will not drive up electricity rates.
The group also called for a revamp at the Power Sector Assets and Liabilities Management Corp. (PSALM) and the Energy Regulatory Commission (ERC).
“TUCP-Nagkaisa will support the President but the solutions proposed should not punish workers and their families with an increase in power rates. We insist that the DOE now present their tariff simulations and cost-impact scenarios to the public so we will know what to do,” TUCP Executive Director Luis Corral said.
TUCP spokesman Alan Tanjusay said some of the solutions to the impending power shortage involve purchase of gas turbines and diesel-powered generation sets.
According to Tanjusay, the purchase of the turbines and sets will drive power rates up.
He accused PSALM of criminal negligence for not including in its budget the case of illegally terminated workers of the National Power Corp. - by JEFFERSON ANTIPORDA REPORTER Manila Times With JING VILLAMENTE
Monday, August 18, 2014
TUCP sees gloom for power users
Every household in Luzon may have to pay P1,600 to P1,800 more per month for their electricity once the energy crisis kicks in next year, the Trade Union Congress of the Philippines (TUCP) warned on Sunday.
If this projection holds true, the country’s residential electricity rates would be among the highest in the world, TUCP Executive Director Louie Corral said.
Corral lambasted Energy officials for their alleged lack of concrete and enforceable plans and strategies to avert a power crisis.
“We, and that means all of us, should know the merits and specifics of the recommended strategies, where the suggestions are coming from, and what the taxpayers and the consumers will end up paying for,” he said.
The TUCP and the Philippine Chamber of Commerce and Industry (PCCI) agree that there must be a comprehensive set of policies to combat the crisis while also working to bring power rates down.
Energy Secretary Jericho Petilla earlier admitted that a power crisis may be felt by March or May 2015, affecting 10.4 million households if the projected demand of 9,011 megawatts for next year is not met.
As a solution, Petilla is planning to rent expensive diesel-run power barges for two to three years.
The power barges will be run by the Power Sector Assets and Liabilities Management (PSALM) for 20 days and whenever there will be yellow alert status.
“Under this scheme, the generation charges from these plants, excluding transmission and distribution charges, will easily hit P15 to P18 per kwh. This will dramatically drive up household rates,” explained Alan Tanjusay, TUCP spokesman.
Also proposed was the use of the Interruptible Load Program (ILP), which is being pushed by some business lobbies so that there is no longer any need to resort to emergency powers for President Benigno Aquino 3rd. ILP allows mall owners to run their generators to provide electricity to their stores.
“These groups are now lobbying to bring up the current cost of 66 centavos per kwh, which the ERC [Energy Regulatory Commission[ allows the ILP participating companies to charge to all Meralco customers for running their own generators rather than getting their power from Meralco. Talks are rife that they also want commercial rates in the neighborhood of P15 to P18 per kwh. We remind all that what we face is not just a supply problem but a cost problem. If we are not competitive in Asean we will lose out. Jobs will be lost and no new jobs will be created,” Tanjusay said.
Asean (Association of Southeast Asian Nations) groups the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
According to Tanjusay, higher electricity “will have a very painful effect on ordinary workers.”
“It will also have dire political consequences for the Aquino administration and derail the economic takeoff of the country,” he also warned. -by JING VILLAMENTE
If this projection holds true, the country’s residential electricity rates would be among the highest in the world, TUCP Executive Director Louie Corral said.
Corral lambasted Energy officials for their alleged lack of concrete and enforceable plans and strategies to avert a power crisis.
“We, and that means all of us, should know the merits and specifics of the recommended strategies, where the suggestions are coming from, and what the taxpayers and the consumers will end up paying for,” he said.
The TUCP and the Philippine Chamber of Commerce and Industry (PCCI) agree that there must be a comprehensive set of policies to combat the crisis while also working to bring power rates down.
Energy Secretary Jericho Petilla earlier admitted that a power crisis may be felt by March or May 2015, affecting 10.4 million households if the projected demand of 9,011 megawatts for next year is not met.
As a solution, Petilla is planning to rent expensive diesel-run power barges for two to three years.
The power barges will be run by the Power Sector Assets and Liabilities Management (PSALM) for 20 days and whenever there will be yellow alert status.
“Under this scheme, the generation charges from these plants, excluding transmission and distribution charges, will easily hit P15 to P18 per kwh. This will dramatically drive up household rates,” explained Alan Tanjusay, TUCP spokesman.
Also proposed was the use of the Interruptible Load Program (ILP), which is being pushed by some business lobbies so that there is no longer any need to resort to emergency powers for President Benigno Aquino 3rd. ILP allows mall owners to run their generators to provide electricity to their stores.
“These groups are now lobbying to bring up the current cost of 66 centavos per kwh, which the ERC [Energy Regulatory Commission[ allows the ILP participating companies to charge to all Meralco customers for running their own generators rather than getting their power from Meralco. Talks are rife that they also want commercial rates in the neighborhood of P15 to P18 per kwh. We remind all that what we face is not just a supply problem but a cost problem. If we are not competitive in Asean we will lose out. Jobs will be lost and no new jobs will be created,” Tanjusay said.
Asean (Association of Southeast Asian Nations) groups the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
According to Tanjusay, higher electricity “will have a very painful effect on ordinary workers.”
“It will also have dire political consequences for the Aquino administration and derail the economic takeoff of the country,” he also warned. -by JING VILLAMENTE
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