Showing posts with label Power. Show all posts
Showing posts with label Power. Show all posts

Monday, October 13, 2014

‘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

Tuesday, September 9, 2014

More brownouts in next 2 years -TUCP

20140908_manila-blackout-ap-aaron-favila
Energy Secretary Carlos Jericho Petilla said rotational brownouts especially in Luzon may continue in 2015 due to electricity shortage. Photo shows dark Manila streets where power was affected following Typhoon Glenda earlier this year. AP/Aaron Favila


MANILA, Philippines — Labor group Trade Union Congress of the Philippines on Monday said it foresees more brownouts for the next two years without a concrete national strategy by the government to address a looming energy crisis.

The group said the real extent of the energy problem will kick in 2016 and beyond if Department of Energy (DOE) secretary Jericho Petilla will resort to quick fixes and expensive band-aid solutions.

Such short-term solutions the group cited as ineffective are renting power barges and generator sets, gas turbines and effect the Interruptible Load Program, or ILP.

The ILP by the DOE will allow malls to run their generator sets with consumers paying for their maintenance and operation costs.

Under these schemes, TUCP said the generating companies and their distribution utility will merrily do their supply and demand games while continuously burdening consumers with high power rates and more brownouts.

"The silence of Secretary Petilla is deafening. After his 'emergency powers' call was made, he is now backpedalling and trying to portray the problem as less than it is. Either he is the 'boy who cried wolf' or simply trying to place a band-aid fix because he was unable to make a case for surgery to the president, he clearly has not grasped the true extent of the problem," TUCP executive director Louie Corral said.

Corral warned that the ILP program is just a stopgap measure, noting that Meralco customers will now be financially obligated to cover the costs for mall owners running their generators for their own use.

It runs on the theory that by freeing Meralco to keep the lights on in other areas, businesses are doing consumers a favor, he explained.

"We are going to end up subsidizing their malls. But the 2015 power deficit is just the tip of the iceberg. The failure of both the DOE to address the policy gap now makes it inevitable that the crisis will repeat itself in 2016 and onwards," Corral said.

TUCP said the major policy gap is that government does not incentivize the entry of additional and cheaper power capacity if it continues to allow Meralco to enter 'sweetheart' bilateral contracts from their preferred suppliers which will always mean low reserves to ensure high power rates.

To bring in genuine competition and additional supply, TUCP proposes to allow enough leeway in the Electric Power Industry Reform Act for DOE to mandate all the distribution utilities such as the market-dominant Meralco to source their power supply every three years through international public bidding under the DOE and ERC.

"Our call is therefore to clip this self-serving option of their subject the choice of who will supply them to international public bidding under DOE supervision," Corral said.

By Dennis Carcamo (philstar.com)

Tuesday, September 2, 2014

TUCP tells Aquino: Lead from the front



THE largest labor organization in the country, the Trade Union Congress of the Philippines (TUCP), on Monday called on President Benigno Aquino 3rd to “lead from the front” and convene a “national summit for a jobs program” and a “national summit on power, water and public transport.”

“The TUCP believes that all sectors of society will rally behind the President once he takes the cudgels for the real issues that plague the country today: unemployment, the power crisis, the impending water crisis and the public transport breakdown,” TUCP Executive Director Luis Corral said.

According to him, “(t)he Left and their outworn ideological prescriptions are now outwearing the welcome and tolerance of those who simply want investments that create decent jobs and arguably the governance reforms of Aquino are creating such a window of opportunity.”

“In the same vein, there are those presuming to speak for the basic social sectors in advancing a narrative of succession in 2015, (with one) painting a false picture of the administration and the other is doing a disservice to the nation in distracting the President from the real problems he has to address in the last two years of his administration,” Corral said.

He added that Aquino’s “failure to take up these real problems, not the elite discourse on 2015 succession, will be the prelude to an economic meltdown and collapse of his social contract” with the people,” he added.

The TUCP pointed out that a recent Social Weather Stations survey on joblessness and the static 7.1 percent unemployment rate represent the true picture of how far economic inclusiveness still has to go, that the power crisis is having a chilling effect on locators and investors and may lead to a new round of job retrenchments.

It said even as clogged ports have led to some 20,000 workers being laid off, ordinary workers risk death and amputation everyday as they take the dilapidated Metro Rail Transit 3 train system daily.

Meanwhile, the TUCP accused the government of playing deaf to cries of the National Water and Resources Board that El Nino threatens the country’s water supply for drinking purposes, agricultural use and electricity generation.

TUCP spokesman Alan Tanjusay said the President is badly served by high officials preparing their golden parachutes or warming their chairs preparing for future electoral campaigns. - JING VILLAMENTE / Manila Times

Monday, September 1, 2014

TUCP: Real issues must be addressed

THE Trade Union Congress of the Philippines yesterday asked President Aquino to “lead from the front” and convene a national summit for a jobs program, on power, on water, and on public transport.

TUCP executive director Luis Corral said his group believes all sectors of society will rally behind Aquino if he addresses the “real issues” of unemployment, power crisis, impending water crisis, and “public transport breakdown.”
“It is the President who has a mandate. He has only to convene all groups so that they–and not the proxy poor, the proxy peasant and the proxy marginalized–can speak for themselves,” he said.

He said the leftist groups “and their outworn ideological prescriptions are now outwearing the welcome and tolerance of those who simply want investments that create decent jobs.”

“In the same vein there are those presuming to speak for the basic social sectors in advancing a narrative of succession in 2015,” Corral said.

Corral said the TUCP is appealing to Aquino not to be distracted.

“The divergence of political and economic goals heard from the left, the right and all points in between in the last few days shows that there are a mixed bag of opportunists, pretenders, and political engineers who are on the one hand trying to lead the country from behind and on the other hand, perennial ideological nitpickers trying to derail the political and economic gains of the last four years,” he said.

TUCP spokesperson Alan Tanjusay said a national summit on jobs and consumer issues will catalyze the silent majority who placed their trust in an Aquino presidency.

He said “assigning blame and politicking” are not what the silent majority is concerned about.

Corral said consultations on power ordered by the President in his state of the nation address last July have not brought ordinary consumers and workers on board.

“It appears to be a discourse of various Makati interest groups, who are elbowing each other out to promote their preferred gas turbines, power barges or interruptible load programs (ILP). It is again, and wrongly so, about how much will one group earns and what kind of price Juan dela Cruz will end up paying for both as taxpayer and consumer,” said Corral. - Malaya

National summit on unemployment, power pushed

BAGUIO CITY , Philippines – President Aquino was asked yesterday to call a national summit to resolve problems on unemployment, power, water and the breakdown of the public transport system.

Trade Union Congress of the Philippines (TUCP) executive director Luis Corral said Aquino must lead a national summit to draw up plans to promote job creation and ensure affordable power.

“The President should let the poor speak for themselves,” he said. “The fate of the water and rapid transport programs should not be allowed to follow that of the power sector.”

Corral said all sectors must rally behind Aquino when he takes up the cudgels on these issues besetting the nation today.
“Failure to take up these real problems, not the elite discourse on 2016 succession, will be the prelude to an economic meltdown and collapse of his social contract with the Filipino people,” he said.

TUCP spokesman Alan Tanjusay said a national summit on jobs and consumer issues will catalyze the silent majority who placed their trust in the Aquino presidency.

“The current discourse of assigning blame and politicking on the one hand, and the redemptive forecasting by others for 2016 on the other hand, is not what the silent majority is concerned about,” he said.

“The act of governance is, by its nature, fraught with risk, a party can be turned out of power or validated with a new majority. Also, governance is not about redeeming souls, it is about the governance mechanisms that create policies that provide higher salaries for government workers, for roads that close the distance for goods to reach their markets, and making education and healthcare accessible. It is about who will work, in what kind of job, with what kind of compensation and under what kind of conditions.”

Corral said Aquino must convene all groups so they can speak for themselves.

“Instead of being soothed by the siren call of the proxy poor and the substitute proletariat on the relative merits of charity work, Aquino should get down to the task at hand, creating decent jobs and squelching the deficit in power, water and mass transport,” he said.

Corral said the Left and their “outworn ideological prescriptions” are now outwearing the welcome and tolerance of people wanting investments to create jobs and for the governance reforms of Aquino to create “a window of opportunity.”

Some people are painting a false picture of the administration and others are distracting Aquino from the real problems he has to face in the last two years of his administration, he added. – With Mayen Jaymalin - Philstar

Group urges Aquino to address problems via national summit

THE Trade Union Congress of the Philippines (TUCP) on Sunday called on President Aquino to take the lead in addressing the problems besetting the country by convening a “national summit for jobs program” and a “national summit on power, water and public transport” to rally the support of the people.
“The TUCP believes that all sectors of society will rally behind the President once he takes the cudgels for the real issues that plague the country today: unemployment, the power crisis, the impending water crisis and the public-transport breakdown,” TUCP Executive Director Luis Corral said in a statement.

The TUCP appeals to Mr. Aquino not to be distracted by the political noise and get down to the task at hand of creating decent jobs and addressing power, water and mass-transport problems.

“It is the President who has a mandate. He has only to convene all groups so that they—and not the proxy poor, the proxy peasant and the proxy marginalized—can speak for themselves. Currently, the jobless see themselves as without hope. And ordinary consumers see apathy from government as the days without power, without water and rolling coffin trains creep upon them,” Corral stressed.

He said even as the clogged ports has led to some 20,000 workers both in the forward and backward supply chain being laid off, ordinary workers risk death and amputation everyday as they take the dilapidated trains daily.

On the other hand, the National Water and Resources Board is playing deaf, even as the El Niño Phenomenon threatens water supply for drinking purposes, agricultural use and electricity generation, he added.

“These are the problems where we need the President to inspire us, to rally us toward collective solutions, especially where collective sacrifice is needed. The political noise of naysayers and the gimmickry of apologists is not a substitute for presidential leadership,” TUCP Spokesman Alan Tanjusay said.

“Let us focus on the task at hand, and have the President convene and lead summits to address job creations so that workers can feed their families; a summit to ensure reliable and affordable power so that industries can grow, reliable water so that we can live lives with some dignity and mass transport that unclogs our roads and delivers both people and goods safely to their destinations.”

TUCP insisted that a national summit on jobs and also on consumer issues will catalyze the silent majority, who placed their trust in an Aquino presidency. - Jonathan L. Mayuga /Business Mirror

Sunday, August 31, 2014

President urged to convene summit on water crisis

The country’s largest labor group urged President Aquino to convene a National Summit, which will discuss solutions for national economic problems, particularly the imminent water shortage next summer.

In a statement, Trade Union Congress of Philippines (TUCP) Executive Director Luis Corral said other issues which should also be included in the proposed meeting would be the looming power shortage, public transportation woes, and the still significantly high unemployment rate in the country.

“Aquino should get down to the task at hand, creating decent jobs and squelching the deficit in power, water and mass transport,” Corral said.

TUCP issued the statement yesterday amid the apparent lack of government preparation for the imminent calamity.

“The high officialdom is playing deaf to the cries of the National Water and Resources Board (NWRB) that El Niño threatens our water supply for drinking purposes, agricultural use and electricity generation,” TUCP spokesperson Alan Tanjusay said.

Water concessionaires earlier warned they may resort to water rationing by next year as the levels in the Angat, which supplies the water in Metro Manila, is expected to further decline with the onset of the El Niño weather phenomenon before the end of 2014.

“The TUCP believes that all sectors of society will rally behind the President once he takes the cudgels for the real issues that plague the country today,” he said.

Corral said the proposed summit would yield better recommendations compared to some of his advisers from the organization, which are “proxy poor, the proxy peasant and the proxy marginalized” as well as those, who want to “lead the country from behind.”

“We appeal to the President not to be distracted by those who wish to waylay economic gains and not to be hijacked by those who wish to take advantage of him when too much of his political capital is being wasted in the legal equivalent of saloon brawls,” Corral said. - Manila Bulletin / Yahoo

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

Friday, August 8, 2014

TUCP, Ecop: Reduced workweek to backfire



Workers and employers are one in opposing a proposal for a four-day work week to conserve electricity in offices and factories.

Both the Trade Union Congress of the Philippines and the Employers Confederation of the Philippines said the proposal put forth by the Energy department would backfire and erode productivity.

The Department of Energy’s failure to have a policy on power security and competitive rates led to this crisis, said Louie Corral, TUCP executive director. “How dare it now tries to impose a labor policy. Why will workers sacrificed to answer for the policy failure and lack of forward planning of the Department of Energy? When did workers become the safety net to ensure high profits for power generation and Meralco?”

Ecop president Edgardo Lacson, for his part,  said that to cut working days to four a week would blunt the country’s competitive edge in the global workplace.

“While the rest of the world continuously work from five to six days a week, it will  be expected that the country will further slide down in the competitiveness ladder,” Lacson said.

Both groups said the compressed workweek would tell on the health of the workers whose efficiency and productivity would suffer due to fatigue caused by the stressful 2-hour extension for 4 nights.

The Philippines bears highest cost of electricity in Asia and the Filipino family in general has exhausted all means to cut cost, Corral said. “Have they lost all decency? Is this their idea of the social contract of our government with its people? Their cavalier treatment of the SONA directive to consult and their easy conclusion of who must pay the price speak volume about what we can expect from the both of you during the DOE leadership,” he added.

He said that while many Filipinos  are sacrificing because of the power crisis, Petilla apparently does not seem to share this sentiment.

‘Instead of time-bound and transparent multi-sectoral consultations, Petilla is very quick to dump the burden on worker while he insensitively undertook negotiations for expensive power barge rentals. Petilla apparently do not understand correct sequencing,’ he said

For his part, TUCP spokesperson Alan Tanjusay said that a compressed  week for daily wage earners would mean one day less of wages.

Tanjusay reiterated the call TUCP made with the Nagkaisa labor coalition in April to President Aquino to convene a multi-agency, multi-sectoral task force to generate a national response and work towards solutions-- a clear policy on power supply, price and a coherent strategy out of the crisis.

He said the DOE failed the consumers by not applying a full-options approach which would have nipped the crisis in the bud or minimized its impact.

The DOE, he said, rather contently sleepwalks from crisis-to-crisis applying one band-aid solution after the other but what they really did was surrender the real power policy making to Meralco and to the generation sector actors-- neither wants a secure power supply or a competitive rate. - By Vito Barcelo

TUCP thumbs down 4-day workweek plan

by JING VILLAMENTE

The Trade Union Congress of the Philippines (TUCP) has shot down the four-day workweek proposal by Energy Undersecretary Jose Layug Jr. as a means to conserve energy.

TUCP Executive Director Louie Corral on Thursday said the proposal highlighted the Department of Energy’s lack of policy on power security and competitive rates.

“Why will workers be sacrificed to answer for the policy failure and lack of forward planning by the Department of Energy? When did workers become the safety net to assure high profits for power generation and Meralco?” Corral added, referring to the Manila Electric Co., the country’s biggest power distributor.

“In this power crisis, all must bear the burden and all must sacrifice but Energy Secretary Jericho Petilla apparently does not seem to share this sentiment,” he said.

Corral accused Petilla of “dumping” the burden on workers while pushing for “expensive power barge rentals” to ease the energy shortage.

TUCP spokesman Alan Tanjusay said a compressed four-day workweek would be stressful for workers.

Tanjusay reiterated the group’s call for President Benigno Aquino 3rd to convene a multi-agency, multi-sectoral task force to generate a national response and a clear policy on power supply, price and a coherent strategy to address the looming power crisis.

Tuesday, August 5, 2014

TUCP urges Petilla to hold dialogue on power problem

 Energy Secretary Jericho Petilla
MANILA, Philippines - The Trade Union Congress of the Philippines (TUCP) on Monday called on Energy Secretary Jericho Petilla to hold consultations with stakeholders and immediately establish policies and plans to address the looming power crisis.

The TUCP made the call after President Benigno Aquino III, during his 5th State of the Nation Address, instructed Petilla to schedule time-bound consultations.

Without the consultation, the TUCP said that various businessmen are taking advantage of the current power situation by offering expensive sources of electricity.

“Power policy is de facto being set by the independent power generation sector and Meralco. They are now taking advantage of the absolute lack of leadership of Petilla as one group is peddling very expensive solar, another trying to lease power barges to the government and Meralco is shuffling around maintenance schedules to prevent the crisis,” TUCP executive director Louie Corral said.

TUCP has also appealed to Aquino to convene a multi-agency, multi-sectoral committee to draw up a consensus on what policy the government should implement on power security and competitive rates.

“Only the president can restore investor and consumer confidence. Petilla preens with confidence but his explanation sounds curiously fraudulent," Corral said.

- By Dennis Carcamo (philstar.com)

Monday, August 4, 2014

KRISIS DAW O | So where is the energy plan? Labor group asks energychief Petilla

 PHOTO BY BERNARD TESTA

MANILA – The Trade Union Congress of the Philippines (TUCP) has expressed alarm that Energy Secretary Jericho Petilla still has not set up the time-bound and transparent consultation that President Aquino has instructed him to do at last week’s SONA to establish policies and plans to address the power crisis.

In a related development, a partylist lawmaker on Monday questioned the forecast of the Department of Energy (DoE) of a looming power crisis that could result in rotating brownouts in Luzon in the summer months next year.

“Power policy is de facto being set by the independent power generation sector and Meralco. They are now taking advantage of the absolute lack of leadership of Petilla as one group is peddling very expensive solar, another trying to lease power barges to the government, and Meralco is shuffling around maintenance schedules to prevent the crisis,” said Louie Corral, TUCP executive director, in a news release.

TUCP appealed to Aquino to convene a multi-agency, multi-sectoral committee to draw up a consensus on what policy we will have on power security and competitive rates.

“Only the president can restore investor and consumer confidence. Petilla preens with confidence but his explanation sounds curiously fraudulent.”

Corral reminded Petilla that the power crisis is not just due to a power deficit but to power rates among the highest in the world.

“Our sky-high power rates have made us regionally uncompetitive in the ASEAN, and now we have all these salesmen of expensive power lobbying on the respective merits of their products,” Corral said.

He empasized that multi-sectoral consensus is key if the people will be made to sacrifice during the crisis.

“We gently remind the DOE secretary that it will be the Filipino taxpayer and the Filipino consumer who will end up footing the bill. If expensive solutions are not backed up by a modicum of government savvy and intervention, we will end precisely where we are now: at the mercy of the independent power producers.”

Is the power crisis real?

Bayan Muna partylist Representative Neri Colmenares said that based on DoE figures as of 2013, the installed capacity for Luzon grid was 12,790 MW and dependable capacity was 11,469 MW. He added that the peak demand for the grid was only 8,700 MW, and Meralco’s share was 6,121 MW.

“So if you deduct dependable capacity from peak demand, there should have been allowance for reserves amounting to 2,700MW. This is more than the 400 MW deficit that (Energy) Secretary (Jericho) Petilla claims. Based on the DoE figures itself, even in a tight supply condition, there should be more than enough supply,” Colmenares said.

“As I see it and based on the DoE data itself power supply is not a problem and there is no need for emergency powers if the Energy Regulatory Commission (ERC) and DOE would get their acts together. The Aquino administration should stop crying wolf and once again try to find an excuse for a power rate hike,” Colmenares added.

Petilla has been pushing Congress to grant President Benigno Aquino III emergency powers to allow him to deal with the looming crisis.

Colmenares said that if the DoE's reference on plant capacities were accurate, then it should have been addressed a long time ago through the Power Development Plan.

“Is it really supply that is a problem or there are other factors that prevent some capacities from being dispatched, like the supposed collusion between power industry players last year? Up till now the ERC has yet to submit their investigation on the matter,” he said.

The lawmaker also noted that one unit of the 650-MW Malaya plant -- 300 MW capacity -- was down.

"When can the Power Sector Assets and Liabilities Management Corp. (PSALM) bring it back to operation so it can contribute to 2015 summer supply?” he said.

- By: Lira Dalangin-Fernandez, InterAksyon.com

Thursday, July 24, 2014

TUCP presses government to enter into power generation


TUCP, iminumungkahing pasukin na ng gobyerno ang sektor ng paglikha ng kuryente

Aired July 23, 2014, GMA News State of the Nation Jessica Soho 9:00 PM (PHL Time) on GMA News TV Channel 11

Tuesday, July 22, 2014

Power crisis may shut down businesses, TUCP fears

AS the power situation in Luzon remains tight, the Trade Union Congress of the Philippines (TUCP) warned that the power crisis may force businesses to shut down.

The group is scheduled to meet on Wednesday with various business and labor groups to draw up measures amid adverse ramifications of the energy problem on employment and business stability.

“We have no national strategy to address the looming power crisis. So, the TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis precluded by prolonged rotational brownouts currently prevailing in many key areas Luzon and in Mindanao,” TUCP Executive Director Louie Corral said on Monday.

The TUCP “wants the government to be prepared when the perfect storm caused by lack of power policy hits the country because it’s the workers who’ll be whipped hard when the storm comes,” Corral added.

Even before Typhoon Glenda hit the country last week, he said, his group had urged Energy Secretary Jericho Petilla to declare a national emergency on power “so that collectively we can come up with the right solutions.”

Petilla recommended the declaration to Malacanang on Monday.
“The fate of all industry roadmaps, particularly the employment targets, is dependent on how we address the power crisis right now.

We need a truthful picture of our future power supply so that we can come up with clear strategies and coping mechanisms and avert companies shutting down and retrenchments of workers. A flawed power industry roadmap will be fatal to the economy. We cannot afford to hinge on the day-to-day weather predicament the fate of the employment of millions of workers,” Corral said.

“Without sufficient and affordable power, there will be no investors and there will be no new jobs,” he added.

The TUCP urged the government to temporarily return to power generation business “until there is sufficient supply to restore business confidence, a return to tariff-setting based on 12 percent cap return-on-rate-base (RORB) to bring down the electricity prices to make the country regionally competitive.”

The group noted that the Philippines has one of the highest electricity rates in the world, which makes the country unattractive to new investments that create quality jobs. This, it said, resulted in static unemployment of 3.046 million in April 2013 and 2.924 million in April 2014.

If the rotating brownouts being imposed by the Manila Electric Co. (Meralco) continues, the TUCP said it is possible that thousands of employees may lose their jobs.

Meralco also on Monday said electricity would have been fully restored in Metro Manila on Sunday but that some areas in nearby provinces will continue to be without power because distribution lines damaged by Typhoon Glenda had not been fixed.

Joe Zaldarriaga, Meralco spokesman, said the company has doubled efforts to restore power in their franchise area.

Also as of Monday, 4.99 percent of the distribution utility’s franchise still had no electricity.

“We hope to close the gap [for Metro Manila] within today. For the franchise area, we cannot say, but we have an internal deadline,” Zaldarriaga told reporters.

He said they are fixing transmission lines in the provinces of Laguna, Cavite, Batangas and Quezon but that it will take time to fully restore power in these provinces.

“These are isolated areas [where] we lost supply because we still have to re-string the lines and fix our transformers after they were devastated by the typhoon,” Zaldarriaga added.

Petilla said the power deficit has narrowed down after the 250-megawatt unit of Santa Rita plant kicked in. The energy situation is expected to improve when four power plants will start feeding the Luzon grid within the week.

These plants are San Lorenzo, Pagbilao 1 and 2, Calaca and BacMan. - Manila Times

Monday, July 21, 2014

TUCP to gather labor groups amid current 'power' situation

MANILA, Philippines - Alarmed by the current power situation in some parts of the country following the onslaught of Typhoon "Glenda," the Trade Union Congress of the Philippines said Monday that it will meet with various business and labor groups this week to draw up measures to address the problem.

TUCP executive director Louie Corral said the Aquino administration has yet to come up with solution to the current energy situation.

Several provinces and areas in Metro Manila have been experiencing power outages after the typhoon crossed Luzon last week.

“TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis precluded by prolonged rotational brownouts currently prevailing in many key areas Luzon and in Mindanao," Corral said.

He added: "TUCP wants the government to be prepared when the ‘perfect storm,’ caused by lack of power policy, hits the country because it’s the workers who’ll be whipped hard when the storm comes."

The group said that with one of the highest electricity rates in the world, the country remains unattractive to new investments that create quality jobs resulting to a static unemployment of 3.046 million in April 2013 to 2.924 million in April 2014 while underemployed are 11.057 million and 11.501 million covering the same period.

With the rotational brownouts in the equation, the TUCP also fears many jobs might be retrenched with companies affected by inadequate power supply.

The TUCP and its labor coalition called Nagkaisa has recommended twice to President Benigno Aquino III during the previous Labor day dialogue since 2013 the creation of a multi-agency, multi-sectoral presidential task force headed by him and composed of the economic and infrastructure clusters of the cabinet, business chambers, labor, consumer and power industry players.

The aim of the task force is to address the insufficiency of power and the need to determine affordability and competitiveness of power rates in the country.

Based on the recommendation, Energy Secretary Jericho Petilla last May issued an order creating a study group under the DOE.

The TUCP and the Nagkaisa, however, refused to participate saying that they were asking for a presidential task force, not a study group.

Before the onset of rotational brownouts in Metro Manila, Corral said the TUCP urged Petilla to declare a national emergency on power "so that collectively we come up with the right solutions."

“The fate of all industry roadmaps particularly the employment targets is dependent on how we address the power crisis right now. We need a truthful picture of our future power supply so that we can come up with clear strategies and coping mechanisms and avert companies shutting down and retrenchments of workers," Corral said.

The TUCP is recommending that the government temporarily return to the power generation business until there is sufficient supply to restore business confidence, a return to tariff-setting based on 12 percent cap return-on-rate-base (RORB) to bring down the electricity prices to make the country reghionally competitive.

The group also suggests the suspension of Wholesale Electricity Spot Market in favor of bilateral contracting between generators and distributors overseen through a public auction by DOE and Energy Regulatory Commission to ensure true costs and not speculative and “gaming” costs. - Philstar

Workers, businessmen unite in hope to find answers to power woes

IN A rare opportunity, employers and employees find common ground in finding the urgency to address the emerging power crisis in the country.

In a statement, the Trade Union Congress of the Philippines (TUCP) said that business and labor groups are set to meet on Wednesday to discuss the power crisis in the country.

"We have no national strategy to address the looming power crisis. So, the TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis," said TUCP executive director Louie Corral.

He said the two sectors often fighting over labor issues deemed it necessary for them to be united in helping the government find an effective solution to the power crisis.

"The fate of all industry roadmaps particularly the employment targets is dependent on how we address the power crisis right now. A flawed power industry roadmap will be fatal to the economy. We cannot afford to hinge on the day-to-day weather predicament the fate of the employment of millions of workers," said Corral.

To recall, labor groups have already asked President Benigno Aquino III as early as last year to head a multi-agency, multi-sectoral presidential task force composed of the economic and infrastructure clusters of the cabinet, business chambers, labor, consumer and power industry players with the aim to address the power woes of the country.

Energy Secretary Jericho Petilla had responded last May by creating a study group under the Department of Energy (DOE), instead, said the TUCP.

Labor groups refused to participate, saying what they asked for is a presidential task force and not a study group.

TUCP spokesman Alan Tanjusay said they are wary that the rotational brownouts could ultimately result to severe job losses across the country.

"With the rotational brownouts in the equation, TUCP fears many jobs might be retrenched with companies affected by inadequate power supply," said Tanjusay in a phone interview.

He noted how the Department of Labor and Employment (Dole) had recorded last year about 40,000 people losing their jobs under normal circumstances, or due to slump in demand and high cost of production.

"If the government does not come up with the right strategy to address the problem, the numbers could easily increase dramatically to almost double," said Tanjusay. (HDT/Sunnex)

Sunday, July 13, 2014

TUCP Slams DOE Sec. Petilla for Inutility on Brownouts

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The Trade Union Congress of the Philippines (TUCP) chided Energy Secretary Petilla for his being inability to address brownouts and increasing electricity rates.

The group, instead, proposes a declaration of national emergency on power so that the country will cease being a victim of the vicious cycle.

TUCP described the “red alert” status issued by the Department of Energy, warning as to insufficient supply this weekend as the tip of the iceberg.

“Our ship-of-state is sailing full speed ahead, in a collision course with the twin -peak iceberg of lack of power and MERALCO’s never-ending price increases. The DOE is placing our economic take-off at risk and is setting the stage for an impending economic meltdown,” said TUCP Executive Director Luis Corral.

“The TUCP requests that the DOE Secretary to call a spade a spade and advice President Aquino that there is now an emergency in the power sector, requiring a multi-agency response with clear directions from the President, “said Corral.

The labor center in a two-hour audience with President Aquino this April 30 requested the President to declare an emergency and establish a multi-agency group under him to address the power crisis. The DOE instead set up a task force study group which the TUCP and labor coalition Nagkaisa..

Corral laid the responsibility with the DOE for not laying down clear policy parameters and accompanying strategies to ensure secure power supply or to define competitive rates.

“The DOE doesn’t have these two items which can be technically defined by engineers, financial analysts and industry practitioners. In the absence of crisis leadership, electric power policy is veering from one Supreme Court case, still unresolved, to a new Supreme Court case, from ERC caps on a supposedly free-market activity to a more complex two price-cap mechanism and now to a pitiful DOE Task Force on Power Rates whose arcane and complex debates are further obscuring one central fact: That power Philippine Power Policy is in this climate of drift is firmly in the hands of a socially irresponsible and financially greedy power generation sector,” he explained.

In the midst of this, consumers are supposed to rely on the oversight of an Energy Regulatory Commission headed by the Napoles-challenged Zeny Ducut,” said TUCP spokesperson Alan Tanjusay.

“While there is a lack of secure and reliable supply, government should step in to put up additional capacity. If bilateral contracts between power distributors and generators will better lower rates and approximate true costs, then suspend the WESM until a technically developed percentage of supply reserve is set up to engender real competition. If there is cheap hydropower available during the rainy season, then run it instead of keeping it as ancillary reserve while the more expensive coal and oil plants are run,” Tanjusay said..

He said this can be done without need of amending EPIRA,” All it takes is Presidential courage to announce an emergency and the need for a national response. Then all the players can be prodded, cajoled and otherwise mobilized to restore sanity to the electricity industry."

The TUCP also called for an end to “blue skies” wishful thinking that somehow the DOE target to increase solar from 50 Megawatts to 500 Megawatts, will ease the burden of the supply deficit.

Solar has at best an efficiency capacity at best of 20%, 500 MW really means 100 MW and that will never be large enough or reliable enough to be base load for large industries. Also, this will be done with a feed-in-tariff that will jack up rates by an average of 18 centavos per kWh for the next 20 years.

"Solar seems to be the flavor of the month, Two years ago the flavor was privatizing the power barges and last year it was pushing generation sets. In Mindanao DOE could have rehabilitated the Agus Pulangui hydro-electric complex as demanded by Mindanawons, they did not , so the UP experts are predicting 200 plus days of brownouts for Mindanao next year. In the meantime the DOE rushed implementation of the Retail Competition and Open Access program which we fear will further drive up rates for the captive residential households of MERALCO,” Corral added.

TUCP attributes the deflated 5.9% GDP growth rate in the first quarter as being driven by insecurity of businesses in our power supply. TUCP also attributed the inflation rate of 4.7% in May, the highest in 30 months, on the spiraling cost of power. They said energy officials preen with confidence about the manageability of our power crisis and yet we are made to pay for their failure of political leadership.

The labor group said the country is hit by the triple whammy of spiraling costs of goods and commodities, an interruptible load program that allows Robinson's and SM to power up their generators to energize the lights and air-conditioning of their malls when there are NCR brownouts and be able to charge it to MERALCO customers, and now the real threat of retrenchments because businesses are losing because of no power and high power costs.

TUCP has warned that the ASEAN Integration come 2015 requires a clear energy roadmap. "A wrong-headed energy roadmap will be fatal to all other industry roadmaps. If there is no power, there will be no investors and there will be no jobs," Tanjusay said.- Bohol Standard