THE Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP) yesterday said the purchasing power of workers in Cebu and other parts of the country are greatly affected by the high cost of electricity.
ALU-TUCP education director Art Barrit said that business operations are no longer competitive due to high power rates in the country. As a result, most employers can hardly comply with the minimum wage order set by the Regional Tripartite Wages and Productivity Board (NWPC).
“Our economy is fueled by the remittances of OFW (Overseas Filipino Workers), not by FDI (foreign direct investment) which posted only $4 billion last year, whose total FDI in the Asean region registered at $120 billion,” Barrit said.
Based on their study, Barrit said the biggest budget outlay and the business operation is not the salaries in wages of the ordinary workers but on power and electricity.
“This is the reason why workers are asking Malacañang to review and revisit the Epira (Energy Power Industry Reform Act) and to have a cap on power rates,” Barrit said.
A letter dated June 17, 2014 was sent to President Benigno Aquino III through Department of Labor and Employment (Dole) Sec. Linda Dimapilis-Baldoz and Secretary to the Cabinet Rene Almendras by the Nagkaisa Labor Convenors.
“It has been 59 days today since you said you will meet us again to give your response to important various issues we raised with you and your cabinet during the nationally shown pre-labor day breakfast dialogue on April 29, 2014,” read the letter.
“With our local unions and members nationwide egging us for your feedback we would highly appreciate if you let us know if you are still inclined to meet with Nagkaisa to give your response to the issues on the table,” the letter further read.
Barrit said the labor sector has been asking Malacañang for a meeting on the power issue. Relatively, the Aquino administration is amenable to their proposals. - By Elias O. Baquero / SunStar
Showing posts with label Power Generation. Show all posts
Showing posts with label Power Generation. Show all posts
Wednesday, October 22, 2014
Thursday, September 25, 2014
Power supply disclosure sought
A labor group on Wednesday challenged the Energy Regulatory Commission (ERC) and Department of Energy (DOE) to disclose their power supply data, saying that a lot of available power is being concealed amid allegations of an impending power shortage in 2015.
The Trade Union Congress of the Philippines-Nagkaisa said the ERC has not spoken about an impending power shortage in 2015, even as the DOE is all over the place announcing a 300 megawatt deficit that can climb to 800 megawatt.
“We stressed the importance of correct data in undertaking power policy. If DOE has incorrect data, then the wrong arguments are being advanced and that’s is why fale solutions which are very expensive such as gas turbines, power barges, and generator sets are now being prioritized,” the TUCP said in a statement.
TUCP-Nagkaisa said DOE’s proposal of contracting P12 billion of capacity—300 megawatt genset or power barge plus 300 megawatt reserve—would mean a 50-centavo per kilowatt hour increase to be borne by consumers nationwide for two years.
“We warned that an increase in the price of power is sure to create an inflationary domino effect. Power is not a “stand alone” issue,” the TUCP said.
“Take the matter of workers disposable incomes which are constantly being erode by high price of power. A 24-month period where power rates are jacked up by 50 centavos per kilowatt hour which does not yet factor in additional generation, transmission and distribution charges is sure to wreak havoc on the already meager salaries of workers. It will surely trigger an increase in the prices of basic goods and services, we will be left with no other response except to seek an increase in wages.” - By Vito Barcelo / Manila Standard
The Trade Union Congress of the Philippines-Nagkaisa said the ERC has not spoken about an impending power shortage in 2015, even as the DOE is all over the place announcing a 300 megawatt deficit that can climb to 800 megawatt.
“We stressed the importance of correct data in undertaking power policy. If DOE has incorrect data, then the wrong arguments are being advanced and that’s is why fale solutions which are very expensive such as gas turbines, power barges, and generator sets are now being prioritized,” the TUCP said in a statement.
TUCP-Nagkaisa said DOE’s proposal of contracting P12 billion of capacity—300 megawatt genset or power barge plus 300 megawatt reserve—would mean a 50-centavo per kilowatt hour increase to be borne by consumers nationwide for two years.
“We warned that an increase in the price of power is sure to create an inflationary domino effect. Power is not a “stand alone” issue,” the TUCP said.
“Take the matter of workers disposable incomes which are constantly being erode by high price of power. A 24-month period where power rates are jacked up by 50 centavos per kilowatt hour which does not yet factor in additional generation, transmission and distribution charges is sure to wreak havoc on the already meager salaries of workers. It will surely trigger an increase in the prices of basic goods and services, we will be left with no other response except to seek an increase in wages.” - By Vito Barcelo / Manila Standard
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
Congress asked to pass extra power reso
PRESIDENT Benigno Aquino III has asked Congress to pass a joint resolution authorizing him to enter into contracts to add generating capacity to the Luzon grid to avert a looming power crisis in 2015.
In a letter to House Speaker Feliciano Belmonte Jr. and Senate President Franklin Drilon dated Sept. 12, Aquino acknowledged that the imminent power shortage during the first quarter of next year as “a real threat to the country’s growing economy and the general welfare of the people.”
Aquino stressed the need for the House and the Senate to move for the speedy enactment of the joint resolution that “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.”
In seeking the authority from Congress, President Aquino invoked Section 71 – the Electric Power Crisis Provision – of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA).
“This authority is needed to address the imminent shortage of electric power for the summer of 2015 in Luzon,” Aquino said.
Section 71 states that the President, upon determination of an imminent shortage of supply of electricity, may ask Congress for authority, through a joint resolution, to establish additional generating capacity under such terms and conditions as it may approve.
The President’s letter noted that the Department of Energy had projected “a critical electricity situation in the summer of 2015” due to the expected effects of the El Niño phenomenon, the turnaround of the Malampaya gas-to-power facility, the increased and continuing outages of power plants, and the anticipated delays in the commissioning of new power projects.
The resolution to be submitted by the Palace is aimed at averting a looming power crisis in Luzon when the Malampaya gas field shuts down for a month from March 15 to April 15 with a shortfall of at least 300 megawatts.
Belmonte said he already referred the President’s request to the House committee on energy chaired by Oriental Mindoro Rep. Reynaldo Umali.
Umali had earlier vowed “to work very hard” to secure the passage of a resolution that will grant President Benigno Aquino III emergency powers to prevent blackouts next year.
But Senator Sergio Osmeña III, chairman of the Senate committee on energy, said the Palace request would have to be studied very carefully, even as he chided the administration for ignoring his warnings since 2011 of a coming power shortage.
He said Energy Secretary Carlos Jericho Petilla was even going around telling people not to believe him because there would be no blackouts in 2015.
“Now they send us a letter and want action by the end of the month? No sir! I have to protect the Filipino people,” Osmeña said.
“We won’t give him emergency powers just like that. We know what happened in 1992, right?” he added, referring to the negotiated power deals by the Ramos administration that resulted in high energy costs.
“We have to be very careful about what type of powers we will extend to them. Number two, we want to make sure that the people know what the price will be. And I am expecting the price will be as high as P15 per kilowatt-hour, or even 20/kwh.”
Drilon said he received the letter from the President Monday, but also said it would be impossible to have the joint resolution by the end of September.
“That is impossible because 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. We will work on as fast as we can,” Drilon said.
“I think the Committee on Energy chaired by Senator Osmena 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 added. “I don’t want to bind Senator Osmeña and his committee. They will examine this.”
Senator Francis Escudero urged the Palace to be transparent about how much contracted energy would cost, and how the Malampaya funds would be used if the President is granted emergency powers.
“A powerful light must shine on these contracts in the interest of transparency and to prevent a repeat of the country’s experience during the energy crunch of 1990s when power contracted later burdened consumers,” Escudero said.
In a speech in Quezon province last week, President Aquino announced he was seeking a joint congressional resolution which would authorize the government to order additional generating capacity of around 600 megawatts.
The generating capacity would be cut into two: 300 megawatts to meet the projected base-load deficit and 300 megawatts as buffer or equivalent to 4 percent of peak demand.
Energy officials forecast an energy shortage in Luzon at 400 MW to 1,000 MW during the first half of 2015.
Leyte Rep. Ferdinand Martin Romualdez, who heads the independent minority bloc in the House, cautioned his colleagues against granting the President emergency powers.
“This is a very serious matter that Congress should address with caution. The concerned government officials should back the necessity of giving emergency powers to the President,” Romualdez said.
The Trade Union Congress of the Philippines-Nagkaisa said it supported the granting of emergency powers, but warned that these should not result in higher electricity costs.
In a letter to House Speaker Feliciano Belmonte Jr. and Senate President Franklin Drilon dated Sept. 12, Aquino acknowledged that the imminent power shortage during the first quarter of next year as “a real threat to the country’s growing economy and the general welfare of the people.”
Aquino stressed the need for the House and the Senate to move for the speedy enactment of the joint resolution that “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.”
In seeking the authority from Congress, President Aquino invoked Section 71 – the Electric Power Crisis Provision – of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA).
“This authority is needed to address the imminent shortage of electric power for the summer of 2015 in Luzon,” Aquino said.
Section 71 states that the President, upon determination of an imminent shortage of supply of electricity, may ask Congress for authority, through a joint resolution, to establish additional generating capacity under such terms and conditions as it may approve.
The President’s letter noted that the Department of Energy had projected “a critical electricity situation in the summer of 2015” due to the expected effects of the El Niño phenomenon, the turnaround of the Malampaya gas-to-power facility, the increased and continuing outages of power plants, and the anticipated delays in the commissioning of new power projects.
The resolution to be submitted by the Palace is aimed at averting a looming power crisis in Luzon when the Malampaya gas field shuts down for a month from March 15 to April 15 with a shortfall of at least 300 megawatts.
Belmonte said he already referred the President’s request to the House committee on energy chaired by Oriental Mindoro Rep. Reynaldo Umali.
Umali had earlier vowed “to work very hard” to secure the passage of a resolution that will grant President Benigno Aquino III emergency powers to prevent blackouts next year.
But Senator Sergio Osmeña III, chairman of the Senate committee on energy, said the Palace request would have to be studied very carefully, even as he chided the administration for ignoring his warnings since 2011 of a coming power shortage.
He said Energy Secretary Carlos Jericho Petilla was even going around telling people not to believe him because there would be no blackouts in 2015.
“Now they send us a letter and want action by the end of the month? No sir! I have to protect the Filipino people,” Osmeña said.
“We won’t give him emergency powers just like that. We know what happened in 1992, right?” he added, referring to the negotiated power deals by the Ramos administration that resulted in high energy costs.
“We have to be very careful about what type of powers we will extend to them. Number two, we want to make sure that the people know what the price will be. And I am expecting the price will be as high as P15 per kilowatt-hour, or even 20/kwh.”
Drilon said he received the letter from the President Monday, but also said it would be impossible to have the joint resolution by the end of September.
“That is impossible because 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. We will work on as fast as we can,” Drilon said.
“I think the Committee on Energy chaired by Senator Osmena 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 added. “I don’t want to bind Senator Osmeña and his committee. They will examine this.”
Senator Francis Escudero urged the Palace to be transparent about how much contracted energy would cost, and how the Malampaya funds would be used if the President is granted emergency powers.
“A powerful light must shine on these contracts in the interest of transparency and to prevent a repeat of the country’s experience during the energy crunch of 1990s when power contracted later burdened consumers,” Escudero said.
In a speech in Quezon province last week, President Aquino announced he was seeking a joint congressional resolution which would authorize the government to order additional generating capacity of around 600 megawatts.
The generating capacity would be cut into two: 300 megawatts to meet the projected base-load deficit and 300 megawatts as buffer or equivalent to 4 percent of peak demand.
Energy officials forecast an energy shortage in Luzon at 400 MW to 1,000 MW during the first half of 2015.
Leyte Rep. Ferdinand Martin Romualdez, who heads the independent minority bloc in the House, cautioned his colleagues against granting the President emergency powers.
“This is a very serious matter that Congress should address with caution. The concerned government officials should back the necessity of giving emergency powers to the President,” Romualdez said.
The Trade Union Congress of the Philippines-Nagkaisa said it supported the granting of emergency powers, but warned that these should not result in higher electricity costs.
“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 Department of Energy 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. – by Maricel Cruz, Joel E. Zurbano, Vito Barcelo - Manila Standard Today
Tuesday, September 16, 2014
With no solution in sight, power crisis will spillover 2016 - TUCP
QUEZON CITY – Without an acceptable and genuine national strategy addressing the forthcoming energy crisis in 2015, the Trade Union Congress of the Philippines (TUCP) is seeing more brownouts to happen in 2016.
TUCP warned that the real extent of the problem will kick in 2016 and beyond if the current Department of Energy (DOE) secretary resort to quick fix and expensive band aid solutions such as renting power barges and generator sets, gas turbines and effect the Interruptible Load Program (ILP) – a program by the DOE allowing malls to run their generator sets with consumers paying for their maintenance and operation costs.
Under these schemes, TUCP insists 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 implications for workers who will be laid off, for jobs that will never be created, for imperiled businessmen, and for the poor consumers are disaster.
“We are alarmed at the silence of the government to directly and genuinely address the power crisis. 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,” said TUCP executive director Louie Corral.
Corral warned that the ILP program is just a stopgap measure. He said Meralco customers will now be financially obligated to cover the costs for Messrs. Sy and Gokongwei running their mall generators for their own use on the theory that by freeing Meralco to keep the lights on in other areas that these oligarchs are doing consumers a favor.
“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 emphasized.
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 is proposing that there is enough leeway in EPIRA for DOE to mandate that henceforth all the distribution utilities such as the market-dominant Meralco, controlling 74%of the Luzon market, to source their power supply every 3 years from international public bidding held under the supervision of the DOE and ERC.
TUCP suspects Meralco is again behind the power crisis. Meralco allegedly hostaged its consumers to their Redondo coal plant supplier in Subic. When the 600 MW coal plant was stymied by the Supreme Court issuance of Writ of Kalikasan and the objections of environmental groups, Meralco could have chosen 2 to 3 years ago to take their supply from AES Masinloc which also wanted to set up 600 MW plant or even from GN Power in Quezon. Instead they insisted on Redondo.
With 74% of the market share in Luzon, Meralco is proverbial ‘only game in town’ and if they chose any other source, this would have prevented the power shortfall for 2015. “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,” he added.
- Samar News
TUCP warned that the real extent of the problem will kick in 2016 and beyond if the current Department of Energy (DOE) secretary resort to quick fix and expensive band aid solutions such as renting power barges and generator sets, gas turbines and effect the Interruptible Load Program (ILP) – a program by the DOE allowing malls to run their generator sets with consumers paying for their maintenance and operation costs.
Under these schemes, TUCP insists 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 implications for workers who will be laid off, for jobs that will never be created, for imperiled businessmen, and for the poor consumers are disaster.
“We are alarmed at the silence of the government to directly and genuinely address the power crisis. 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,” said TUCP executive director Louie Corral.
Corral warned that the ILP program is just a stopgap measure. He said Meralco customers will now be financially obligated to cover the costs for Messrs. Sy and Gokongwei running their mall generators for their own use on the theory that by freeing Meralco to keep the lights on in other areas that these oligarchs are doing consumers a favor.
“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 emphasized.
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 is proposing that there is enough leeway in EPIRA for DOE to mandate that henceforth all the distribution utilities such as the market-dominant Meralco, controlling 74%of the Luzon market, to source their power supply every 3 years from international public bidding held under the supervision of the DOE and ERC.
TUCP suspects Meralco is again behind the power crisis. Meralco allegedly hostaged its consumers to their Redondo coal plant supplier in Subic. When the 600 MW coal plant was stymied by the Supreme Court issuance of Writ of Kalikasan and the objections of environmental groups, Meralco could have chosen 2 to 3 years ago to take their supply from AES Masinloc which also wanted to set up 600 MW plant or even from GN Power in Quezon. Instead they insisted on Redondo.
With 74% of the market share in Luzon, Meralco is proverbial ‘only game in town’ and if they chose any other source, this would have prevented the power shortfall for 2015. “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,” he added.
- Samar News
Tuesday, September 9, 2014
More brownouts in next 2 years -TUCP
 |
| 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)
Monday, August 18, 2014
TUCP sees gloom for power users
Every household in Luzon may have to pay P1,600 to P1,800 more per month for their electricity once the energy crisis kicks in next year, the Trade Union Congress of the Philippines (TUCP) warned on Sunday.
If this projection holds true, the country’s residential electricity rates would be among the highest in the world, TUCP Executive Director Louie Corral said.
Corral lambasted Energy officials for their alleged lack of concrete and enforceable plans and strategies to avert a power crisis.
“We, and that means all of us, should know the merits and specifics of the recommended strategies, where the suggestions are coming from, and what the taxpayers and the consumers will end up paying for,” he said.
The TUCP and the Philippine Chamber of Commerce and Industry (PCCI) agree that there must be a comprehensive set of policies to combat the crisis while also working to bring power rates down.
Energy Secretary Jericho Petilla earlier admitted that a power crisis may be felt by March or May 2015, affecting 10.4 million households if the projected demand of 9,011 megawatts for next year is not met.
As a solution, Petilla is planning to rent expensive diesel-run power barges for two to three years.
The power barges will be run by the Power Sector Assets and Liabilities Management (PSALM) for 20 days and whenever there will be yellow alert status.
“Under this scheme, the generation charges from these plants, excluding transmission and distribution charges, will easily hit P15 to P18 per kwh. This will dramatically drive up household rates,” explained Alan Tanjusay, TUCP spokesman.
Also proposed was the use of the Interruptible Load Program (ILP), which is being pushed by some business lobbies so that there is no longer any need to resort to emergency powers for President Benigno Aquino 3rd. ILP allows mall owners to run their generators to provide electricity to their stores.
“These groups are now lobbying to bring up the current cost of 66 centavos per kwh, which the ERC [Energy Regulatory Commission[ allows the ILP participating companies to charge to all Meralco customers for running their own generators rather than getting their power from Meralco. Talks are rife that they also want commercial rates in the neighborhood of P15 to P18 per kwh. We remind all that what we face is not just a supply problem but a cost problem. If we are not competitive in Asean we will lose out. Jobs will be lost and no new jobs will be created,” Tanjusay said.
Asean (Association of Southeast Asian Nations) groups the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
According to Tanjusay, higher electricity “will have a very painful effect on ordinary workers.”
“It will also have dire political consequences for the Aquino administration and derail the economic takeoff of the country,” he also warned. -by JING VILLAMENTE
If this projection holds true, the country’s residential electricity rates would be among the highest in the world, TUCP Executive Director Louie Corral said.
Corral lambasted Energy officials for their alleged lack of concrete and enforceable plans and strategies to avert a power crisis.
“We, and that means all of us, should know the merits and specifics of the recommended strategies, where the suggestions are coming from, and what the taxpayers and the consumers will end up paying for,” he said.
The TUCP and the Philippine Chamber of Commerce and Industry (PCCI) agree that there must be a comprehensive set of policies to combat the crisis while also working to bring power rates down.
Energy Secretary Jericho Petilla earlier admitted that a power crisis may be felt by March or May 2015, affecting 10.4 million households if the projected demand of 9,011 megawatts for next year is not met.
As a solution, Petilla is planning to rent expensive diesel-run power barges for two to three years.
The power barges will be run by the Power Sector Assets and Liabilities Management (PSALM) for 20 days and whenever there will be yellow alert status.
“Under this scheme, the generation charges from these plants, excluding transmission and distribution charges, will easily hit P15 to P18 per kwh. This will dramatically drive up household rates,” explained Alan Tanjusay, TUCP spokesman.
Also proposed was the use of the Interruptible Load Program (ILP), which is being pushed by some business lobbies so that there is no longer any need to resort to emergency powers for President Benigno Aquino 3rd. ILP allows mall owners to run their generators to provide electricity to their stores.
“These groups are now lobbying to bring up the current cost of 66 centavos per kwh, which the ERC [Energy Regulatory Commission[ allows the ILP participating companies to charge to all Meralco customers for running their own generators rather than getting their power from Meralco. Talks are rife that they also want commercial rates in the neighborhood of P15 to P18 per kwh. We remind all that what we face is not just a supply problem but a cost problem. If we are not competitive in Asean we will lose out. Jobs will be lost and no new jobs will be created,” Tanjusay said.
Asean (Association of Southeast Asian Nations) groups the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
According to Tanjusay, higher electricity “will have a very painful effect on ordinary workers.”
“It will also have dire political consequences for the Aquino administration and derail the economic takeoff of the country,” he also warned. -by JING VILLAMENTE
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
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