THE Trade Union Congress of the Philippines (TUCP) accused Monday members of the Cabinet of misguiding President Rodrigo Duterte on how to properly address the issue of contractualization.
According to TUCP Vice President Luis Corral, they are wary that the Department of Labor and Employment (Dole) is misleading Duterte on how to make true to his campaign promise of eliminating all forms of contractualization.
"The real problem is the Dole as they are speaking for... they are putting words in the mouth of the President. Mukhang nililihis nila yung usapin," said Corral.
The labor leader said it is simply questionable why Labor Secretary Silvestre Bello III "is not following the directive" of Duterte.
He added that “neoliberal” Cabinet members, namely Socioeconomic Planning Secretary Ernest Pernia, Finance Secretary Carlos Dominguez, and Trade Secretary Ramon Lopez are taking advantage of Duterte’s lack of complete understanding of the contractualization issue to sway the latter’s position.
“May pakiwari kami na kulang ang pagkakaintindi ng Pangulo doon sa contractualization dahil hindi naman siya labor lawyer by profession. At nilalayo siya ng tatlong neoliberal doon sa tamang landas,” said Corral.
To recall, President Rodrigo Duterte had vowed to put an end to labor contractualization practices during his administration.
Amid accusations made by the TUCP, Bello called on the labor sector to agree to the “middle ground” proposal for contractualization, wherein only illegitimate contractualization schemes are prohibited.
“While the Department is keen on curbing illegitimate contractualization or ‘endo’ practices as directed by the President, we recognize that there are legitimate forms of contracting and thus may be allowed particularly in seasonal and project employment,” said the Labor chief in a statement.
“I urge labor groups to work hand-in-hand with the current Administration in identifying plans, policies and platform of engagement in the next medium term,” he furthered.
Earlier, Bello had already raised the “middle ground” proposal, wherein some types of contractual work schemes, such as project-based and seasonal work arrangements, will be allowed.
Essentially, the “middle ground” is a reiteration of the controversial Department Order 18-A (DO 18-A) of the DOLE. - (HDT/Sunnex)
Showing posts with label Luis Corral. Show all posts
Showing posts with label Luis Corral. Show all posts
Monday, November 28, 2016
Thursday, June 25, 2015
Tripartite inspection of power plant shutdowns sought
A trade unionist stresses the importance of stable power supply and low power rates in attracting foreign investors and ensuring the competitiveness of local businesses
MANILA, Philippines – Power plant shutdowns should be physically inspected by a 3-party panel composed of representatives from government, civil society, and the power sector to prevent collusion attempts by power players.
This is according to Trade Union Congress of the Philippines (TUCP) executive director Louie Corral, who noted the swiftness of the order of Labor Secretary Rosalinda Baldoz for a tripartite inspection of Valenzuela city factories following a massive factory fire that killed at least 72. (READ: Dire conditions found in factories around Kentex)
Corral said such inspections should be preventive rather than reactive across industries, not just in manufacturing.
He urged the energy department to issue a department order allowing consumers to be represented in the inspection of outages in power plants.
In a recent interview, the trade unionist said such a move would disable the artificial inflation of power rates. Corral cited the alleged jacked up prices of power distribution firm Manila Electric Company (Meralco), when it bought supply from the Wholesale Electricity Spot Market (WESM).
The whopping P4.15 per kilowatt hour (kWh) power rate increase became controversial in 2014 as Meralco was forced to source its power requirements from the WESM, which is subject to volatile prices. The Supreme Court has since issued a temporary restraining order on the price hike. (READ: SC extends TRO on Meralco rate hike indefinitely)
Bulk of the rate increase was due to generation charges or the cost of producing the electricity, which generation companies collect from power distribution firm Meralco. Meralco, in turn, passes on this cost to consumers.
The power distributor had to source power from WESM due to the scheduled maintenance shutdown of its main power source, the Malampaya gas field.
Meralco also had to contend with the simultaneous outages of the power plants it had existing power supply agreements with. These outages coincided with that of Malampaya which, Meralco explained, led to the record-high increase.
Meralco was accused before the High Court of inflating charges by selling to WESM at ceiling price the power it already bought from power generation company Therma Mobile Inc.
Meralco countered that it was merely a victim of WESM's must-offer rule and of arbitrary bids that messed up pricing.
Corral told Rappler the tripartite inspection will partly address power shortages caused by the deliberate withholding of power supply by generation companies, noting the dubious simultaneous outages.
Physical inspection of the plants are a must during shutdowns to avoid reliance on mere paper work, he added.
He stressed the importance of stable power supply and low power rates in attracting foreign investors and ensuring the competitiveness of local businesses.
Tripartite inspection instead of joint assessments?
TUCP also urged tripartite inspections in the manufacturing industry to replace the current framework of joint assessments under the Labor Laws Compliance System (LLCS).
Under the LLCS, workplaces are jointly assessed by a labor law compliance officer from the labor department, a representative from among the workers in that workplace, and the employer or his or her representative.
TUCP spokesperson Alan Tanjusay said the workers' representative would necessarily be afraid to reveal any labor standards violations for fear of losing his or her job. He said the workers' representative should be a trade unionist instead, with no employer-employee relationship to the company being assessed.
In a statement Wednesday, June 24, TUCP claimed that compliance officers and labor leaders were offered bribes during the DOLE-ordered tripartite inspections in Valenzuela. Employers reportedly offered cash in an attempt to expedite the assessment and be granted a compliance certificate.
Tanjusay said the government needs to come up with an additional mechanism to deal with bribery under the LLCS.
Calls to overhaul the LLCS intensified in the aftermath of the fire that killed 72 people in the two-storey footwear factory of Kentex Manufacturing in Valenzuela City in May.
The deadly Kentex factory blaze is seen as a setback for the Philippine manufacturing industry, an industry that draws foreign investors partly due to cheap labor.
Corral argues that the way to attract investors should be through lower utility costs and upgraded skills of workers, instead of lax labor standards and low pay. – Rappler.com / Buena Bernal @buenabernal
Sunday, October 26, 2014
TUCP blames World Bank for 23,000 retrenchments
WE are daring to criticize the revered and mighty World Bank again.
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) has rebuked the World Bank (WB) during its shareholder consultation last Thursday “for excluding core labor standards in its project and policy loans intended for so-called development programs in the country amid the static unemployment and underemployment statistics.”
TUCP estimates that because of “the absence of these standards, around 23,000 workers are already being affected in two ongoing country projects.”
“The bank continues to ignore very important core labor safeguards and standards on wages, health and safe working conditions, terms of employment of workers employed in Bank- financed projects. The continued absence of these core labor standards means that the World Bank will not stand in the way of those denying Filipino workers their right to organize and unionize in infrastructure projects sponsored by the Bank. It means that the Bank will not stand in the way of those retrenching workers in Bank–financed privatizations of state enterprises. We insist that these benchmarks be integrated as soon as possible, otherwise the Bank will be a party to the race-to-the-bottom in terms of the already massive de facto casualization and contractualization of workers,” said Alan Tanjusay, TUCP-Nagkaisa spokesperson.
The bank had organized a round of consultation with various labor unions representatives, environmental advocates, sectoral leaders of peasants, indigenous peoples, women, fisherfolk and youth in the Astoria Plaza in Pasig City last Thursday in the course of its global review and update of its environmental and social policies.
Gerard Seno, executive director of the Associated Labor Unions-TUCP, said the International Trade Union Confederation (ITUC) have started asserting since 1997 for the incorporation of the core labor standards in the safeguard policies of the Bank.
Commendably the World Bank has taken a position against the use of child-labor and non-discrimination in the work force due to sex, religion and political beliefs but there are still huge and gaping holes in their current draft of the “Environmental and Social Standard: Labor and Working Conditions,” TUCP said.
The bank’s board is scheduled to consider a draft in 2015 that is supposed to be inputted with ideas gathered from the consultations.
“The draft labor standard prepared by the Bank does not have the standard requirement that has existed at the bank’s private sector lending arm the International Finance Corporation (IFC) since 2006 and those that have been adopted in recent years by many regional development banks,” Seno said.
TUCP-Nagkaisa Executive Director Luis Corral pointed out that there are more than 23,000 workers in the 119 electric cooperatives whose wages, working conditions and even security of tenure could be affected by World Bank grants and loans for these electric cooperatives.
Coral said, “We are concerned that the workers in these electric cooperatives are not being consulted through their existing unions. The fear of retrenchment or displacement is very real. We remind the Bank that because of the bank-sponsored privatization of the Metropolitan Waterworks and Sewerage System (MWSS) thousands of workers were retrenched. The Bank must proceed with more responsibility and social consciousness.”
“The World Bank has to be reminded that it is the ordinary taxpayers’ money from all the member governments that finances these Bank projects. These are taxes paid by ordinary workers. We also remind the Bank that its aim is to eradicate poverty. It will not do so if even in its own projects, it will not stand for standards that will advance decent work,” Corral added.
We wholeheartedly endorse TUCP’s proposals to the World Bank. - Manila Times
The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) has rebuked the World Bank (WB) during its shareholder consultation last Thursday “for excluding core labor standards in its project and policy loans intended for so-called development programs in the country amid the static unemployment and underemployment statistics.”
TUCP estimates that because of “the absence of these standards, around 23,000 workers are already being affected in two ongoing country projects.”
“The bank continues to ignore very important core labor safeguards and standards on wages, health and safe working conditions, terms of employment of workers employed in Bank- financed projects. The continued absence of these core labor standards means that the World Bank will not stand in the way of those denying Filipino workers their right to organize and unionize in infrastructure projects sponsored by the Bank. It means that the Bank will not stand in the way of those retrenching workers in Bank–financed privatizations of state enterprises. We insist that these benchmarks be integrated as soon as possible, otherwise the Bank will be a party to the race-to-the-bottom in terms of the already massive de facto casualization and contractualization of workers,” said Alan Tanjusay, TUCP-Nagkaisa spokesperson.
The bank had organized a round of consultation with various labor unions representatives, environmental advocates, sectoral leaders of peasants, indigenous peoples, women, fisherfolk and youth in the Astoria Plaza in Pasig City last Thursday in the course of its global review and update of its environmental and social policies.
Gerard Seno, executive director of the Associated Labor Unions-TUCP, said the International Trade Union Confederation (ITUC) have started asserting since 1997 for the incorporation of the core labor standards in the safeguard policies of the Bank.
Commendably the World Bank has taken a position against the use of child-labor and non-discrimination in the work force due to sex, religion and political beliefs but there are still huge and gaping holes in their current draft of the “Environmental and Social Standard: Labor and Working Conditions,” TUCP said.
The bank’s board is scheduled to consider a draft in 2015 that is supposed to be inputted with ideas gathered from the consultations.
“The draft labor standard prepared by the Bank does not have the standard requirement that has existed at the bank’s private sector lending arm the International Finance Corporation (IFC) since 2006 and those that have been adopted in recent years by many regional development banks,” Seno said.
TUCP-Nagkaisa Executive Director Luis Corral pointed out that there are more than 23,000 workers in the 119 electric cooperatives whose wages, working conditions and even security of tenure could be affected by World Bank grants and loans for these electric cooperatives.
Coral said, “We are concerned that the workers in these electric cooperatives are not being consulted through their existing unions. The fear of retrenchment or displacement is very real. We remind the Bank that because of the bank-sponsored privatization of the Metropolitan Waterworks and Sewerage System (MWSS) thousands of workers were retrenched. The Bank must proceed with more responsibility and social consciousness.”
“The World Bank has to be reminded that it is the ordinary taxpayers’ money from all the member governments that finances these Bank projects. These are taxes paid by ordinary workers. We also remind the Bank that its aim is to eradicate poverty. It will not do so if even in its own projects, it will not stand for standards that will advance decent work,” Corral added.
We wholeheartedly endorse TUCP’s proposals to the World Bank. - Manila Times
Thursday, October 23, 2014
Blackouts could cost economy P23B – Aquino
IF an anticipated drop in power supply is not immediately solved and blackouts will occur next year, the cost to the economy could be as high as P23 billion, President Benigno Aquino 3rd warned on Wednesday.
Citing government estimates, Aquino said the economic cost of the feared power outages could reach a minimum of P9.3 billion to as high as P23.3 billion, excluding foregone revenues in sectors that will be affected by brownouts.
“[It depends] on the duration of the power outage. The lower figure [P9.3 billion] assumes power outage of two hours a day on average for three months. The higher figure [P23.3 billion] assumes a worse scenario of five hours a day also for three months,” the President noted during the Presidential Forum of the Foreign Correspondents Association of the Philippines.
This, he said, will likely dent the annual gross domestic product (GDP).
“The economic cost as estimated here pertains to output foregone, i.e. GDP loss from stoppage of economic activities. The estimate does not include foregone investment and tourist arrivals arising from the negative impact of the power outage on the country’s image as investment and tourist destinations,” Aquino added.
It is for these reasons, the President explained, that he had asked Congress for extra powers under the Electric Power Industry Reform Act (Epira) to address the situation on a “worst-case scenario” perspective.
“If there is no power come our summer months, there will only be one party that will be blamed, and that will be the executive. So we were asking from them various powers, not emergency, but these are really embodied already in Epira—to address the situation if and when El Niño is really severe, the forced outages in the trend that they have shown in the past two years also continue, to address also the cannot-be-postponed Malampaya shutdown, among other things,” Aquino said.
Although there are several options that the government can take, renting generators for about two years is no longer being considered because setting these up would take about six months.
The President said the Interruptible Load Program (ILP) is a “plausible substitute” but these standby generators for the most part have never been considered as baseload plants.
“What’s the difference? Standby generator, you run for a few hours. These ILP producers, in effect, will have to produce on a very regular basis, perhaps on a daily basis, if and when the reserve situation is seriously jeopardized,” he also explained.
Aquino said the Energy department balked on running the Malaya plants because they are 30 years old and it would be costly to maintain both plants.
Meanwhile, 49 labor groups and workers’ organizations called on the President to fire Energy Secretary Jericho Petilla for “deceiving the Filipino people” by manufacturing a power-shortage scenario.
The workers’ group Nagkaisa (United) was reacting to revelations during a recent congressional hearing where Energy officials admitted that the projected deficit in supply in 2015 is only about 21 to 31 MW, a far cry from the 1,200 MW shortfall trumpeted by Petilla.
“It is now very clear to us that Secretary Petilla took the country for a ride. He bluffed the President, the Cabinet and everyone with his tall tales of thin power reserves to justify emergency powers that entail possible purchase of multi-billion peso generator sets” Joshua Mata, a group convenor. said.
Another convenor, Louie Corral, executive director of Trade Union Congress of the Philippines-Nagkaisa, said the government should have acted as early as 2011 to avert a power crisis by building new power plants and exercising strong regulatory powers to prevent market fraud.
“The only time we will support emergency powers is when the government finally decides to take over the whole industry with the utmost objective of bringing down the price and securing a sustainable power supply not only for present needs but also for the next generations to come,” Corral added. - by JOEL M. SY EGCO SENIOR REPORTER AND JING VILLAMENTE REPORTER Manila Times
Citing government estimates, Aquino said the economic cost of the feared power outages could reach a minimum of P9.3 billion to as high as P23.3 billion, excluding foregone revenues in sectors that will be affected by brownouts.
“[It depends] on the duration of the power outage. The lower figure [P9.3 billion] assumes power outage of two hours a day on average for three months. The higher figure [P23.3 billion] assumes a worse scenario of five hours a day also for three months,” the President noted during the Presidential Forum of the Foreign Correspondents Association of the Philippines.
This, he said, will likely dent the annual gross domestic product (GDP).
“The economic cost as estimated here pertains to output foregone, i.e. GDP loss from stoppage of economic activities. The estimate does not include foregone investment and tourist arrivals arising from the negative impact of the power outage on the country’s image as investment and tourist destinations,” Aquino added.
It is for these reasons, the President explained, that he had asked Congress for extra powers under the Electric Power Industry Reform Act (Epira) to address the situation on a “worst-case scenario” perspective.
“If there is no power come our summer months, there will only be one party that will be blamed, and that will be the executive. So we were asking from them various powers, not emergency, but these are really embodied already in Epira—to address the situation if and when El Niño is really severe, the forced outages in the trend that they have shown in the past two years also continue, to address also the cannot-be-postponed Malampaya shutdown, among other things,” Aquino said.
Although there are several options that the government can take, renting generators for about two years is no longer being considered because setting these up would take about six months.
The President said the Interruptible Load Program (ILP) is a “plausible substitute” but these standby generators for the most part have never been considered as baseload plants.
“What’s the difference? Standby generator, you run for a few hours. These ILP producers, in effect, will have to produce on a very regular basis, perhaps on a daily basis, if and when the reserve situation is seriously jeopardized,” he also explained.
Aquino said the Energy department balked on running the Malaya plants because they are 30 years old and it would be costly to maintain both plants.
Meanwhile, 49 labor groups and workers’ organizations called on the President to fire Energy Secretary Jericho Petilla for “deceiving the Filipino people” by manufacturing a power-shortage scenario.
The workers’ group Nagkaisa (United) was reacting to revelations during a recent congressional hearing where Energy officials admitted that the projected deficit in supply in 2015 is only about 21 to 31 MW, a far cry from the 1,200 MW shortfall trumpeted by Petilla.
“It is now very clear to us that Secretary Petilla took the country for a ride. He bluffed the President, the Cabinet and everyone with his tall tales of thin power reserves to justify emergency powers that entail possible purchase of multi-billion peso generator sets” Joshua Mata, a group convenor. said.
Another convenor, Louie Corral, executive director of Trade Union Congress of the Philippines-Nagkaisa, said the government should have acted as early as 2011 to avert a power crisis by building new power plants and exercising strong regulatory powers to prevent market fraud.
“The only time we will support emergency powers is when the government finally decides to take over the whole industry with the utmost objective of bringing down the price and securing a sustainable power supply not only for present needs but also for the next generations to come,” Corral added. - by JOEL M. SY EGCO SENIOR REPORTER AND JING VILLAMENTE REPORTER Manila Times
Monday, October 13, 2014
Over 24,000 Filipinos to lose job next year: TUCP
MANILA: Many workers in the Philippines and abroad are expected to be displaced next year, labor groups and recruitment industry officials has warned the national government.The Trade Union Congress of the Philippines (TUCP) was quoted as saying by Philippine Star that about 24,000 local government employees are likely to lose their jobs with the setting up of Bangsamoro Transition Council next year.
“Workers employed in municipalities, cities, provincial and regional offices will be displaced once the Autonomous Region in Muslim Mindanao is dissolved and taken over by the Bangsamoro Transition Council,” TUCP executive director Louie Corral reportedly said.
“The major responsibility of the government is to provide safety nets for these workers who had been serving the bureaucracy quietly,” he reportedly said, adding that the Aquino government apparently has no not yet planned for the impending displacement of government employees.
He also called on the Civil Service Commission (CSC) to step in and take the necessary course of action.
“We are wondering why the commission has not geared up for one of the very important elements of the transition issue,” TUCP official Gerard Seno was quoted as saying.
Seno further said the CSC should ensure that the affected workers are integrated into the new Bangsamoro government using lateral transfer and merit-based integration rather than leaving their fate to circumstance.
Officials of the job placement industry have reported that around 4,000 Filipino workers employed in US bases in Afghanistan are also expected to be displaced by the impending pullout of US troops from Afghanistan by the end of the year.
They reportedly said about 4,000 Filipinos are still posted in Bagram Air Base and Kandahar Airfield and only around a thousand will be retained for maintenance of the military facilities.
Some of the workers are expected to return home starting November as their companies shut down after losing bids to supply logistics to the US forces.
But the workers are hoping that they will still be needed by international contractors hired by the US government, the recruitment officials were quoted as saying by Philippine Star. - The Filipino Times
Massive displacement of local, foreign workers seen next year
MANILA, Philippines - Many workers here and abroad are expected to be displaced next year, labor groups and recruitment industry officials warned the national government yesterday.
The Trade Union Congress of the Philippines (TUCP) said about 24,000 local government employees are expected to lose their jobs with the setting up of Bangsamoro Transition Council next year.
“Workers employed in municipalities, cities, provincial and regional offices will be displaced once the Autonomous Region in Muslim Mindanao is dissolved and taken over by the Bangsamoro Transition Council,” said TUCP executive director Louie Corral.
He said the 24,000 workers are the largest number of employees to be affected as the new Bangsamoro government becomes operational.
The government, Corral said, has the primary responsibility to provide safety nets for these workers who had been serving the bureaucracy quietly.
Corral said the Aquino government apparently has no preparation in place for the impending displacement of government employees.
He called on the Civil Service Commission (CSC) to step in and take the necessary course of action.
“We are wondering why the commission has no preparations towards one of very important elements of the transition issue,” TUCP official Gerard Seno said.
Seno said the CSC should ensure that the affected workers would be integrated into the new Bangsamoro government using lateral transfer and merit-based integration rather than leaving their fate to circumstance.
Also yesterday, officials of the job placement industry reported that close to 4,000 Filipino workers employed in US bases in Afghanistan are also expected to be displaced.
Recruitment officials said thousands of overseas Filipino workers are likely to be affected by the impending pullout of US troops from Afghanistan by the end of the year.
They said about 4,000 Filipinos are still working in Bagram Air Base and Kandahar Airfield and only around a thousand will be retained for maintenance of the military facilities.
Some of the workers are expected to return home starting November as their companies closed down after losing bids to supply logistics to the US forces.
But the workers are hoping that they will still be needed by international contractors hired by the US government, the recruitment officials said. - By Mayen Jaymalin (The Philippine Star)
‘Bangsamoro should regulate Lanao plants’
THE BANGSAMORO entity that will be created to govern a Muslim autonomous region should have the primary supervision and regulation of the hydroelectric power plants in Lake Lanao, the Moro Islamic Liberation Front (MILF) said on its Web site.
Citing the delineation of powers in the Annex on Power-sharing of the Framework Agreement on the Bangsamoro (FAB), the MILF said that the Bangsamoro entity would have primary jurisdiction on the issues of power generation in Mindanao.
“It is on this premise that such claim that the regulation of existing hydropower plants in Lake Lanao will remain primarily under the concerned national government agencies is not accurate, and, therefore, should be corrected at once,” the MILF said in an editorial posted on its Web site luwaran.com.
Miriam Colonel-Ferrer, the chief negotiator of the government peace panel, said that the Lake Lanao power plants will remain primarily under the concern of the national government during the Ad Hoc Committee hearing on the Bangsamoro Basic Law (BBL) last week at the House of Representatives.
However, Ms. Ferrer clarified that power plants not connected to the national transmission grid will be under the regulatory powers of the Bangsamoro government.
Under Article XIII on Economy and Patrimony, Section 22, on Inland Waters, the proposed bill says that “the Bangsamoro shall have exclusive powers over inland waters, including but not limited to lakes, marshes, rivers and tributaries.”
The proposed bill further states that “the Bangsamoro Parliament shall enact laws on the regulation, management and protection of these resources.”
According to the Office of the Presidential Adviser on the Peace Process (OPAPP), the current base-load of electricity in Mindanao comes largely from hydroelectric sources, which contributes roughly more than 700 megawatts to help meet the overall power demand of 1,300 megawatts in the Mindanao region.
BANGSAMORO COUNCIL WILL LEAD TO JOB CUTS
Meanwhile, labor groups have urged the Civil Service Commission (CSC) to step in and address the possible displacement of some 23,000 public sector workers -- most of whom are teachers -- in the Autonomous Region in Muslim Mindanao (ARMM) once the Bangsamoro Transition Council takes over by next year.
“The labor center expresses concern over the unknown fate of these workers who will be dislodged once the Bangsamoro law takes effect. We call on the Civil Service Commission to step in and take the necessary course of action,” said Gerard R. Seno, Associated Labor Unions (ALU) executive vice-president, in a press release.
Of the 23,000 workers in the region that may find themselves jobless, 18,000 are teachers.
“This is a significant number of public sector employees ever to be displaced in the course of Philippine government paving the way for the new Bangsamoro,” said Louie M. Corral, Trade Union Congress of the Philippines (TUCP) executive director, in the same release. “The government has the primary responsibility to provide safety nets for these workers who had been serving the bureaucracy quietly... They should be integrated because they are already an asset.”
For his part, CSC Commissioner Robert S. Martinez earlier said that employees which will be affected may apply for other positions if their posts will be dissolved. -- BusinessWorld Online with Jon Viktor D. Cabuenas
Citing the delineation of powers in the Annex on Power-sharing of the Framework Agreement on the Bangsamoro (FAB), the MILF said that the Bangsamoro entity would have primary jurisdiction on the issues of power generation in Mindanao.
“It is on this premise that such claim that the regulation of existing hydropower plants in Lake Lanao will remain primarily under the concerned national government agencies is not accurate, and, therefore, should be corrected at once,” the MILF said in an editorial posted on its Web site luwaran.com.
Miriam Colonel-Ferrer, the chief negotiator of the government peace panel, said that the Lake Lanao power plants will remain primarily under the concern of the national government during the Ad Hoc Committee hearing on the Bangsamoro Basic Law (BBL) last week at the House of Representatives.
However, Ms. Ferrer clarified that power plants not connected to the national transmission grid will be under the regulatory powers of the Bangsamoro government.
Under Article XIII on Economy and Patrimony, Section 22, on Inland Waters, the proposed bill says that “the Bangsamoro shall have exclusive powers over inland waters, including but not limited to lakes, marshes, rivers and tributaries.”
The proposed bill further states that “the Bangsamoro Parliament shall enact laws on the regulation, management and protection of these resources.”
According to the Office of the Presidential Adviser on the Peace Process (OPAPP), the current base-load of electricity in Mindanao comes largely from hydroelectric sources, which contributes roughly more than 700 megawatts to help meet the overall power demand of 1,300 megawatts in the Mindanao region.
BANGSAMORO COUNCIL WILL LEAD TO JOB CUTS
Meanwhile, labor groups have urged the Civil Service Commission (CSC) to step in and address the possible displacement of some 23,000 public sector workers -- most of whom are teachers -- in the Autonomous Region in Muslim Mindanao (ARMM) once the Bangsamoro Transition Council takes over by next year.
“The labor center expresses concern over the unknown fate of these workers who will be dislodged once the Bangsamoro law takes effect. We call on the Civil Service Commission to step in and take the necessary course of action,” said Gerard R. Seno, Associated Labor Unions (ALU) executive vice-president, in a press release.
Of the 23,000 workers in the region that may find themselves jobless, 18,000 are teachers.
“This is a significant number of public sector employees ever to be displaced in the course of Philippine government paving the way for the new Bangsamoro,” said Louie M. Corral, Trade Union Congress of the Philippines (TUCP) executive director, in the same release. “The government has the primary responsibility to provide safety nets for these workers who had been serving the bureaucracy quietly... They should be integrated because they are already an asset.”
For his part, CSC Commissioner Robert S. Martinez earlier said that employees which will be affected may apply for other positions if their posts will be dissolved. -- BusinessWorld Online with Jon Viktor D. Cabuenas
Concerns over possible dislocation of ARMM workers
Labour confederation says 24,000 government workers in Mindanao would be left jobless once a new body takes over from ARMM
Manila: A labour confederation has expressed fears that some 24,000 government workers in Mindanao would be left jobless once a new body takes over from the administration of the Autonomous Region in Muslim Mindanao (ARMM).
“The labour centre expresses concern over the unknown fate of these workers who would be dislodged once the Bangsamoro law takes effect. We call on the civil service commission to step in and take the necessary course of action. We are wondering why the commission has no preparations towards one of the very important elements of the transition issue,” Gerard Seno, executive vice president of the Associated Labour Unions (ALU) said.
Government and the Moro Islamic Liberation Front had largely focused on the political and economic aspects of the planned Bangsamoro — a self-sustaining self-rule region envisioned to be comprised by Muslim dominated areas in Central and Western Mindanao. Authorities had all but completely ignored or had forgotten about the government workers who would be left without jobs once the transition starts.
It can be recalled that in March this year, the government and the Moro Islamic Liberation Front (MILF) signed a peace agreement, ending more than two decades of conflict with the Christian-dominated central government in Manila.
According to Seno, the labour group is proposing the civil service commission oversee transition matters pertaining to the labour sector and ensure the workforce to be integrated into the new Bangsamoro government would consider absorbing those currently employed in ARMM, with a merit-based integration adopted rather than leaving displaced employees to fend for themselves.
TUCP executive director Louie Corral said: “This is a significant number of public sector employees to be displaced. But the government has the primary responsibility to provide safety nets for these workers who had been serving the bureaucracy quietly. Rather than allowing these people fall through the crack, they should be integrated as they are already an asset.”
Sources said although a peace agreement had been signed between MILF and the government, it could still take several months until a new authority could be set up to replace ARMM.
The ARMM was set up during the administration of President Fidel V. Ramos as a result of the 1996 peace agreement between Moro National Liberation Front.
More than two decades after ARMM was established incumbent President Benigno Aquino III, as part of his promise to MILF, started work on dismantling ARMM which he described a “failed experiment” in self-rule. - By Gilbert P. Felongco, Correspondent Gulf News
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Manila: A labour confederation has expressed fears that some 24,000 government workers in Mindanao would be left jobless once a new body takes over from the administration of the Autonomous Region in Muslim Mindanao (ARMM).
During a recent House of Representatives committee deliberation on the provisions on the proposed Bangsamoro Law, officials of the civil service commission admitted to Rep. Raymond Mendoza of the Trade Union Congress of the Philippines (TUCP) Party list they have not made any plans concerning possible dislocation of workers once an administration for the envisioned self-rule region steps in.
“The labour centre expresses concern over the unknown fate of these workers who would be dislodged once the Bangsamoro law takes effect. We call on the civil service commission to step in and take the necessary course of action. We are wondering why the commission has no preparations towards one of the very important elements of the transition issue,” Gerard Seno, executive vice president of the Associated Labour Unions (ALU) said.
Government and the Moro Islamic Liberation Front had largely focused on the political and economic aspects of the planned Bangsamoro — a self-sustaining self-rule region envisioned to be comprised by Muslim dominated areas in Central and Western Mindanao. Authorities had all but completely ignored or had forgotten about the government workers who would be left without jobs once the transition starts.
It can be recalled that in March this year, the government and the Moro Islamic Liberation Front (MILF) signed a peace agreement, ending more than two decades of conflict with the Christian-dominated central government in Manila.
According to Seno, the labour group is proposing the civil service commission oversee transition matters pertaining to the labour sector and ensure the workforce to be integrated into the new Bangsamoro government would consider absorbing those currently employed in ARMM, with a merit-based integration adopted rather than leaving displaced employees to fend for themselves.
TUCP executive director Louie Corral said: “This is a significant number of public sector employees to be displaced. But the government has the primary responsibility to provide safety nets for these workers who had been serving the bureaucracy quietly. Rather than allowing these people fall through the crack, they should be integrated as they are already an asset.”
Sources said although a peace agreement had been signed between MILF and the government, it could still take several months until a new authority could be set up to replace ARMM.
The ARMM was set up during the administration of President Fidel V. Ramos as a result of the 1996 peace agreement between Moro National Liberation Front.
More than two decades after ARMM was established incumbent President Benigno Aquino III, as part of his promise to MILF, started work on dismantling ARMM which he described a “failed experiment” in self-rule. - By Gilbert P. Felongco, Correspondent Gulf News
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Group fears displacement of 2,400 ARMM gov't workers with creation of Bangsamoro
Labor group Trade Union Congress of the Philippines (TUCP)-Nagkaisa is worried that around 2,400 government employees in the Autonomous Region in Muslim Mindanao will lose their jobs once the region is dissolved and taken over by the Bangsamoro Transition Council.
In a statement, the group said the public sector workers are currently employed in municipalities, cities, provincial and regional government offices in the region.
“The labor center expresses concern over the unknown fate of these workers who will be dislodged once the Bangsamoro law takes effect,"said Gerard Seno, executive vice president of the Associated Labor Unions (ALU).
He said the Civil Service Commission should step in, adding the CSC does not seem to have prepared for "one of the very important elements of transition."
During House deliberations on the proposed Bangsamoro Basic Law chaired by TUCP Party-list Rep. Raymond Mendoza, CSC resource persons could not answer
TUCP-Nagkaisa said the CSC should make sure that the existing workforce will be integrated into the new Bangsamoro government through "lateral transfer and merit-based integration".
Meanwhile, TUCP Executive Director Louie Corral said that it is the responsibility of the government to look after the welfare of public sector workers.
"Rather than allowing these people fell through the cracks, they should be integrated because they are already an asset," he said. — JDS, GMA News
In a statement, the group said the public sector workers are currently employed in municipalities, cities, provincial and regional government offices in the region.
“The labor center expresses concern over the unknown fate of these workers who will be dislodged once the Bangsamoro law takes effect,"said Gerard Seno, executive vice president of the Associated Labor Unions (ALU).
He said the Civil Service Commission should step in, adding the CSC does not seem to have prepared for "one of the very important elements of transition."
During House deliberations on the proposed Bangsamoro Basic Law chaired by TUCP Party-list Rep. Raymond Mendoza, CSC resource persons could not answer
TUCP-Nagkaisa said the CSC should make sure that the existing workforce will be integrated into the new Bangsamoro government through "lateral transfer and merit-based integration".
Meanwhile, TUCP Executive Director Louie Corral said that it is the responsibility of the government to look after the welfare of public sector workers.
"Rather than allowing these people fell through the cracks, they should be integrated because they are already an asset," he said. — JDS, GMA News
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
How much will emergency power cost electricity consumers?
What’s emergency power’s price tag?
Sen. Francis “Chiz” Escudero raised this question yesterday as he said Malacañang should be transparent enough to identify the cost taxpayers would bear if Congress approves the measure granting President Aquino emergency powers to address a looming energy crisis.
“What’s the cost to taxpayers of this measure? Even if power contracted by the government will eventually be sold to distributors, and thus the acquisition cost will be recouped, we still would like to know the costs involved,” Escudero said in a statement.
Escudero said the Executive department should come clean and disclose what additional costs consumers would carry.
“How will it be financed? Even if it’s an off-budget transaction, the government has the duty to publicly disclose the details,” the senator said.
“What is the burden of this to the consumers? Will it entail additional costs to us? If it’s through the electric bill of consumers then government should tell them in advance,” Escudero pointed out.
“We have to protect the Filipino people. We have to be careful. We have to be very careful on what type of powers we extend to them. We want to make sure what price will be. I am expecting an energy price of P15 per kilowatt hour (kwh) and this might reach P20 kwh,” said Sen. Sergio R. Osmeña III, Senate Committee on Energy.
P6-B TO ADDRESS POWER CRISIS
Oriental Mindoro Rep. Reynaldo Umali, House Committee on Energy chairman, said the government needs P6 billion to contract additional generating capacity to address the imminent power crisis in Luzon in the summer of 2015.
Umali said the P6 billion, which would likely be sourced out from Malampaya funds, would be used for the payment of the lease for a two-year period.
“If we lease it, we need a maximum amount of P1 billion per 100 megawatts per year. That’s the working figure we are looking at. So if we need to contract an additional generating capacity to address the projected 300-megawatt deficit, that would be P6 billion,” Umali told reporters during the weekly Ugnayan sa Batasan forum.
Escudero said that if the government will tap funds from the Malampaya natural gas project as fuel for the emergency powers, then it should publicly disclose how it would be done and the amount involved.
Escudero was referring to the government share with the Malampaya funds which will reach P34.5 billion next year, according to the 2015 national budget.
“If the government will tap funds from the Malampaya natural gas field as fuel for emergency powers, then it should tell us how it will be done and the amount involved,” Escudero said.
FORMAL REQUEST
In a letter dated September 12, 2014, President Aquino formally asked Congress to immediately enact the Joint Resolution that would allow his government to contract additional generating capacity to address the “imminent” power crisis in 2015.
The President’s request was signed by Executive Secretary Paquito N. Ochoa Jr.
“In accordance with Section 61 of Republic Act No. 9136, otherwise known as the ‘Electric Power Industry Reform Act of 2001,’ I hereby seek the immediate enactment of a Joint Resolution authorizing the President to establish additional generating capacity,” the President said in his letter to Congress.
“This authority is needed in order to address the imminent shortage of electric power for the summer of 2015 in Luzon,” he stressed.
But Senate President Franklin M. Drilon admitted that it would be impossible for the Upper Chamber to pass the Malacañang request before Congress goes on a three-week recess starting Sept. 26, considering the complicated issues and only four session days left.
“I think the Committee on Energy chaired by Senator Osmeña will meet Wednesday next week. Given all the complicated issues, we cannot rush this but we know the urgency. We will work on this,” Drilon added
‘CRITICAL ELECTRICITY SITUATION’
Aquino sought Congress approval in response to the Department of Energy’s (DOE) report and projection of a “critical electricity situation” in the summer of 2015 arising from, among others, the expected effects of the El Niño phenomenon, the 2015 Malampaya Turnaround, increased and continuing outages of power plants, and anticipated delays in the commissioning of committed power projects.
“There is no gainsaying that the imminent electric power shortage during these months is a real threat to the country’s growing economy and the general welfare of the people,” Aquino said.
“The speedy enactment of the Joint Resolution will ensure the energy requirements of the country for this critical period – through specific, focused and targeted acquisition of very tight energy supply,” the President added.
The President said he is looking forward to a “favorable response from both Houses.”
Umali said the House of Representatives will likely pass the resolution by October.
But before Congress grants the President’s request, Umali wants Energy Secretary Jericho Petilla to define the parameters as required under Section 61 of RA 9136.
“I asked my committee secretariat to draft a letter to Secretary Petilla to define what should be the basis for the issuance of the joint resolution…To sum it all up, what imminent power shortage are we experiencing? We need clear parameters before we craft the resolution. We may have call for a committee hearing on this,” Umali said.
Meanwhile, the Trade Union Congress of the Philippines (TUCP) urged Congress to approve the request of President Aquino for emergency power to address the looming power crisis.
TUCP Executive Director Luis Corral said this will give Aquino the leeway to implement solutions to ensure the country will have sufficient power supply. by Hannah L. Torregoza and Charissa M. Luci (With reports from Mario B. Casayuran and Samuel P. Medenilla) Manila Bulletin
Sen. Francis “Chiz” Escudero raised this question yesterday as he said Malacañang should be transparent enough to identify the cost taxpayers would bear if Congress approves the measure granting President Aquino emergency powers to address a looming energy crisis.
“What’s the cost to taxpayers of this measure? Even if power contracted by the government will eventually be sold to distributors, and thus the acquisition cost will be recouped, we still would like to know the costs involved,” Escudero said in a statement.
Escudero said the Executive department should come clean and disclose what additional costs consumers would carry.
“How will it be financed? Even if it’s an off-budget transaction, the government has the duty to publicly disclose the details,” the senator said.
“What is the burden of this to the consumers? Will it entail additional costs to us? If it’s through the electric bill of consumers then government should tell them in advance,” Escudero pointed out.
“We have to protect the Filipino people. We have to be careful. We have to be very careful on what type of powers we extend to them. We want to make sure what price will be. I am expecting an energy price of P15 per kilowatt hour (kwh) and this might reach P20 kwh,” said Sen. Sergio R. Osmeña III, Senate Committee on Energy.
P6-B TO ADDRESS POWER CRISIS
Oriental Mindoro Rep. Reynaldo Umali, House Committee on Energy chairman, said the government needs P6 billion to contract additional generating capacity to address the imminent power crisis in Luzon in the summer of 2015.
Umali said the P6 billion, which would likely be sourced out from Malampaya funds, would be used for the payment of the lease for a two-year period.
“If we lease it, we need a maximum amount of P1 billion per 100 megawatts per year. That’s the working figure we are looking at. So if we need to contract an additional generating capacity to address the projected 300-megawatt deficit, that would be P6 billion,” Umali told reporters during the weekly Ugnayan sa Batasan forum.
Escudero said that if the government will tap funds from the Malampaya natural gas project as fuel for the emergency powers, then it should publicly disclose how it would be done and the amount involved.
Escudero was referring to the government share with the Malampaya funds which will reach P34.5 billion next year, according to the 2015 national budget.
“If the government will tap funds from the Malampaya natural gas field as fuel for emergency powers, then it should tell us how it will be done and the amount involved,” Escudero said.
FORMAL REQUEST
In a letter dated September 12, 2014, President Aquino formally asked Congress to immediately enact the Joint Resolution that would allow his government to contract additional generating capacity to address the “imminent” power crisis in 2015.
The President’s request was signed by Executive Secretary Paquito N. Ochoa Jr.
“In accordance with Section 61 of Republic Act No. 9136, otherwise known as the ‘Electric Power Industry Reform Act of 2001,’ I hereby seek the immediate enactment of a Joint Resolution authorizing the President to establish additional generating capacity,” the President said in his letter to Congress.
“This authority is needed in order to address the imminent shortage of electric power for the summer of 2015 in Luzon,” he stressed.
But Senate President Franklin M. Drilon admitted that it would be impossible for the Upper Chamber to pass the Malacañang request before Congress goes on a three-week recess starting Sept. 26, considering the complicated issues and only four session days left.
“I think the Committee on Energy chaired by Senator Osmeña will meet Wednesday next week. Given all the complicated issues, we cannot rush this but we know the urgency. We will work on this,” Drilon added
‘CRITICAL ELECTRICITY SITUATION’
Aquino sought Congress approval in response to the Department of Energy’s (DOE) report and projection of a “critical electricity situation” in the summer of 2015 arising from, among others, the expected effects of the El Niño phenomenon, the 2015 Malampaya Turnaround, increased and continuing outages of power plants, and anticipated delays in the commissioning of committed power projects.
“There is no gainsaying that the imminent electric power shortage during these months is a real threat to the country’s growing economy and the general welfare of the people,” Aquino said.
“The speedy enactment of the Joint Resolution will ensure the energy requirements of the country for this critical period – through specific, focused and targeted acquisition of very tight energy supply,” the President added.
The President said he is looking forward to a “favorable response from both Houses.”
Umali said the House of Representatives will likely pass the resolution by October.
But before Congress grants the President’s request, Umali wants Energy Secretary Jericho Petilla to define the parameters as required under Section 61 of RA 9136.
“I asked my committee secretariat to draft a letter to Secretary Petilla to define what should be the basis for the issuance of the joint resolution…To sum it all up, what imminent power shortage are we experiencing? We need clear parameters before we craft the resolution. We may have call for a committee hearing on this,” Umali said.
Meanwhile, the Trade Union Congress of the Philippines (TUCP) urged Congress to approve the request of President Aquino for emergency power to address the looming power crisis.
TUCP Executive Director Luis Corral said this will give Aquino the leeway to implement solutions to ensure the country will have sufficient power supply. by Hannah L. Torregoza and Charissa M. Luci (With reports from Mario B. Casayuran and Samuel P. Medenilla) Manila Bulletin
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
Noy to Congress: Give me emergency powers
 |
| President Aquino is greeted by European Council President Herman Van Rompuy |
MANILA, Philippines - President Aquino has formally asked Congress for emergency powers that would enable him to address the projected electricity shortage next year.
Aquino made the request in a letter to Speaker Feliciano Belmonte Jr., a copy of which was furnished Senate President Franklin Drilon.
However, Drilon said it was impossible for the Senate to come up with the joint resolution by the end of September since Congress has only four plenary sessions left before it adjourns for a three-week break.
“We don’t even have the draft joint resolution. We don’t know the parameters of the authority being requested. We know the urgency, but we can’t rush into this,” he said.
The letter-request, dated Sept. 12, was included in the House order of business yesterday and sent to the rules committee chaired by Majority Leader Neptali Gonzales II.
“In accordance with Section 71 of Republic Act 9136, otherwise known as the Electric Power Industry Reform Act of 2001, I hereby seek the immediate enactment of a joint resolution authorizing the President to establish additional generating capacity,” Aquino said in his request.
He informed Belmonte and Drilon that the Department of Energy predicts a “critical electricity situation” in the summer of 2015 due to, among other factors, the expected effects of the El Niño phenomenon and delays in the start of operation of “committed power projects.”
“There is no gainsaying that the imminent electric power shortage during these months is a real threat to the country’s growing economy and the general welfare of the people.
“The speedy enactment of the joint resolution will ensure the energy requirements of the country for this critical period – through a specific, focused and targeted acquisition of additional generating capacities for use during the limited periods of time of very tight energy supply,” the President said.
“This authority is needed in order to address the imminent shortage of electric power for the summer of 2015 in Luzon. I look forward to a favorable response from both houses (of Congress),” he added.
Gonzales said they are reviewing the draft bill before referring it to the committee on energy. “We will attend to the President’s request with dispatch,” he said.
Cannot be rushed
Drilon said the Senate would work on the measure “as fast as we can,” but could not be rushed to approve it.
“I think the committee on energy chaired by Senator (Sergio) Osmeña will meet on Wednesday next week. Given all the complicated issues, we cannot rush into this but we know the urgency. We will work on this,” he said.
During the hearing on the proposed 2015 budget of the DOE yesterday, Drilon said the President’s letter was too “broad” and did not contain the parameters for the authority being requested from Congress.
Osmeña also echoed Drilon’s statement that the authority could not be granted to the President by the end of the month.
“I’ve been telling them we’ll have a shortage since 2011 and then now this is going to be my fault? It’s not accurate for them to depend on Senate approval before the end of September,” he said.
He said the Senate has a duty to protect the people from the possible adverse impacts of the grant of emergency powers to the President.
He cited the experience during the Ramos administration when several independent power producers were contracted to address the power crisis with a take or pay guarantee. This led to an overcapacity and the National Power Corp. accumulating a massive debt.
Cost to taxpayers
Sen. Francis Escudero said he wants to find out how much the government would incur and its cost to taxpayers.
“What’s the cost to taxpayers of this measure? Even if power contracted by the government will eventually be sold to distributors, and thus the acquisition cost will be recouped, we still would like to know the costs involved,” said Escudero, chairman of the Senate finance committee.
“How will it be financed? Even if it’s an off-budget transaction, the government has the duty to publicly disclose the details,” he added.
Only solution
Energy Secretary Carlos Jericho Petilla said he had raised the issue since July and would continue to push for the establishment of additional generation capacity as “the only solution… at this point.”
While there are other solutions for the expected power shortage next summer, he said there are no guarantees that these would materialize, and might even be more expensive.
Among the options is the Interruptible Load Program (ILP), which involves distribution utilities such as the Manila Electric Co. and electric cooperatives asking their big load customers to address their power requirements by using their own generator sets.
Petilla said private sector response to the ILP has been “dismal” and there is no guarantee it would materialize and address the power shortage.
He said the old Malaya geothermal power plant in Rizal, also among the options, has to be rehabilitated to be utilized.
Given the uncertainties with the other options, Petilla said contracting with power suppliers is presently the only real solution.
Suppliers’ requirement
He said the end-September deadline for the contracting of additional power was based on the requirement of the suppliers of a six-month period to be able to guarantee the necessary load.
“It’s absolute as far as the supplier is concerned,” he said.
With Congress saying that it cannot come out with the joint resolution this month, Petilla said he could settle for a supplier who could provide power requirements of the country in three months.
“But it will be expensive… I don’t think there is anybody who can supply in three months,” he said.
“There are alternatives but the question is, are we willing to pay for it. There are many alternatives, but our problem is time and cost constraints. What we have to consider is if we’re willing to have brownouts. It all depends on what we want,” he added.
Go slow
Militant party-list representatives and other members of the House minority bloc, however, cautioned Congress to go slow in the grant of emergency powers to avoid the anomalies that took place during the Ramos administration.
“We should not commit those mistakes again, like entering into a take-or-pay arrangement, which allows an investor to be fully paid for his generating capacity, whether that is used or not. We should pity the consumer, who will ultimately pay for our mistakes,” Isabela Rep. Rodolfo Albano III, a member of the minority, said.
He said Congress should impose strict parameters for the exercise of emergency powers.
He said Petilla should tell lawmakers his agency’s plans to increase generating capacity in Luzon for the middle of next year.
“Are they buying generators or are they renting? What do they exactly want to do? What are the details? Secretary Petilla should tell us because he will be the one who will be in charge of implementation. As of now, we are groping in the dark, we are guessing. ” he said.
Albano said Petilla should also verify his department’s data on “generating capacity, dependable capacity and demand” to clear up confusion.
“If his own figures for 2013 were to be believed, we even have excess electricity available in Luzon,” he said.
He cited the figures released by his minority colleague, Bayan Muna Rep. Neri Colmenares, and supplied by the DOE, that installed capacity for the Luzon grid is 12,790 megawatts, while dependable capacity is 11,469 MW.
The peak demand for the grid is just 8,700 MW, with Meralco using 6,121 MW.
“If these figures are correct, we will have enough electricity in Luzon next year, when a shortage is projected. Unless they are wrong,” Albano said.
TUCP backs bill
The Trade Union Congress of the Philippines (TUCP) expressed support for the grant of emergency powers for the President, but said he must also ensure that it will not lead to power rate hikes.
“We insist that the Department of Energy 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.
The TUCP said the DOE’s proposals, such as gas turbines and diesel-powered generation sets, could lead to higher power rates.
“We have already advised DOE to do tariff simulations first because the power crisis cannot just be defined as a lack of power supply, it is also about uncompetitive power rates,” the DOE said in a statement.
“It is the consumers who are being punished for the failure to inspect defective meters in 125 distribution utilities by the ERC. And now the power industry wants to add to their profit by creating a power shortage which will allow them to charge more,” the TUCP statement added.
Doable plans
Militant labor group Partido ng Manggagawa (PM) called on Congress to ask the President to present doable plans to solve the looming power crisis before granting him emergency powers.
PM spokesman Wilson Fortaleza warned that palliative solutions to the power crisis would only bring more problems.
He said the Aquino government should be blamed for the power crisis for doing nothing since warnings were raised as early as 2010.
Fortaleza said lawmakers should also declare the EPIRA and privatization a failure and audit all the plants’ capacities before granting emergency powers to the President. – By Jess Diaz (The Philippine Star) With Mayen Jaymalin, Marvin Sy, Artemio Dumlao
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