Wednesday, February 12, 2014
Monday, February 10, 2014
Oppose Meralco's Threat to Trigger Brownouts if TRO is not Lifted! Revoke Meralco's License and Repeal EPIRA!
Meralco, the electricity monopoly, threatened its 5.3 million consumers with brownouts if the temporary restraining order (TRO) on its scandalous 4.5 peso per kilowatt hour is not lifted.
The threat was made by Meralco lawyer Victor Lazatin during the Supreme Court hearings on the rate hike on Feb. 4.
Consumers will not tolerate this blackmail.
On the pretext of losing vast amounts of money, this monopoly, which made 17 billion pesos in profits in 2013, is trying to derail the investigation of its role in the suspicious series of events that led to the rate increase. Meralco has put the blame on seven of its power suppliers that went offline when the Malampaya natural gas plant underwent maintenance from Nov. 11 to Dec. 10, 2013, allegedly forcing Meralco to go to the Wholesale Electricity Spot Market (WESM) for its power deficit. But documents submitted to the Supreme Court showed that it was Meralco’s order to a power supplier--Therma Mobile—that it controls to bid at the maximum allowable price of 62 pesos per kilowatt hour no less than 25 times during that period that was responsible for the skyhigh clearing price at WESM.
Meralco gamed the market, to the detriment of its consumers whom it is obligated to supply at the least possible cost. Moreover, Meralco would not have resorted to buying at WESM’s inflated prices had it made provisions for reserve power from its suppliers in the event of a foreseeable event like the Malampaya shutdown. As President Aquino himself has said, ““There is periodic maintenance [of Malampaya] required. That’s a foreseeable event. If you know what producers of fuel will not be able to produce, then you have to find a substitute. So preparation should have been made for foreseeable events.”
But the problem goes beyond Meralco. It goes beyond the Energy Regulatory Commission, which is the classic example of a regulator that is in the pocket of the regulated. It goes beyond the Department of Energy, which has shown itself to be completely incompetent in planning for the energy needs of the country. The main source of the problem lies in the Electric Power Industry Reform Act (EPIRA), which has placed power generation, transmission, and distribution completely in the hands of the private sector.
Privatization has resulted in monopoly control, inefficient power delivery, and sky-high prices, not in more efficiency, less concentration, and lower prices. Meralco, whose profits have risen over 100 per cent since EPIRA went into effect in 2001, is a monstrous example of EPIRA’s failure.
13 years of exploiting consumers is enough! We demand the revocation of Meralco’s license and the repeal of EPIRA.
The threat was made by Meralco lawyer Victor Lazatin during the Supreme Court hearings on the rate hike on Feb. 4.
Consumers will not tolerate this blackmail.
On the pretext of losing vast amounts of money, this monopoly, which made 17 billion pesos in profits in 2013, is trying to derail the investigation of its role in the suspicious series of events that led to the rate increase. Meralco has put the blame on seven of its power suppliers that went offline when the Malampaya natural gas plant underwent maintenance from Nov. 11 to Dec. 10, 2013, allegedly forcing Meralco to go to the Wholesale Electricity Spot Market (WESM) for its power deficit. But documents submitted to the Supreme Court showed that it was Meralco’s order to a power supplier--Therma Mobile—that it controls to bid at the maximum allowable price of 62 pesos per kilowatt hour no less than 25 times during that period that was responsible for the skyhigh clearing price at WESM.
Meralco gamed the market, to the detriment of its consumers whom it is obligated to supply at the least possible cost. Moreover, Meralco would not have resorted to buying at WESM’s inflated prices had it made provisions for reserve power from its suppliers in the event of a foreseeable event like the Malampaya shutdown. As President Aquino himself has said, ““There is periodic maintenance [of Malampaya] required. That’s a foreseeable event. If you know what producers of fuel will not be able to produce, then you have to find a substitute. So preparation should have been made for foreseeable events.”
But the problem goes beyond Meralco. It goes beyond the Energy Regulatory Commission, which is the classic example of a regulator that is in the pocket of the regulated. It goes beyond the Department of Energy, which has shown itself to be completely incompetent in planning for the energy needs of the country. The main source of the problem lies in the Electric Power Industry Reform Act (EPIRA), which has placed power generation, transmission, and distribution completely in the hands of the private sector.
Privatization has resulted in monopoly control, inefficient power delivery, and sky-high prices, not in more efficiency, less concentration, and lower prices. Meralco, whose profits have risen over 100 per cent since EPIRA went into effect in 2001, is a monstrous example of EPIRA’s failure.
13 years of exploiting consumers is enough! We demand the revocation of Meralco’s license and the repeal of EPIRA.
Monday, February 3, 2014
Social protection, unemployment insurance for Filipinos – ILO, TUCP Partylist
DAVAO City – In a public forum dubbed “Sustainable and Dignified Living for All” organized by the Trade Union Congress Party (TUCP Party List) at ALU Hotel in Davao City today, Mr. Jeff Lawrence Johnson, the country Director for the Philippines of the International Labor Organization (ILO) stressed the importance of having protection of workers against continuing global economic crisis resulting in high global unemployment and increasing threats to lives and livelihoods posed by climate change.
Mr. Johnson said that unemployment is a problem, but the real problem now especially in the Philippines is vulnerable employment.
As of 2013, unemployment rate in the Philippines stood at seven percent (7%) while the gross domestic product (GDP) remained high at around seven percent (7%).
“It is good news that the Philippines still has strong economic growth, but how is this translated to the people. The real challenge for the Philippines is how to achieve sustainable and inclusive growth,” added ILO’s Johnson.
Forty percent (40%) of those with employment are in vulnerable jobs – lowly paid, family workers are unpaid, without security of tenure. ‘The income gap has to be addressed,” remarked Mr. Johnson.
“Social protection such as unemployment insurance will reduce the problems some of the major problems currently faced by the government. If Vietnam can implement unemployment insurance, I see there is no reason the Philippines can’t do it. The challenge for the Congress of the Philippines is how to pass a legislation on unemployment insurance,” said the ILO-Philippines country director.
Responding to Mr. Johnson and speaking before the media and leaders of labor federations in Mindanao, Visayas and Mindanao, TUCP Party –List Raymond Democrito Mendoza committed to file a bill that will mandate guaranteeing unemployment insurance to everyone.
The solon said that the House bill on unemployment insurance that he will file will be in addition to the bill that he co-authors which promotes the welfare of workers in the informal sector – the Magna Carta for Workers in the Informal Economy (MCWIE). The The Committee on Labor and Employment of the House of Representatives conducted its first hearing on the bill on January 22.
In the recently concluded General Assembly of TUCP-Partylist in Davao City on February 3, the Party highlighted the problems of poverty, inequality, and the increasing number of those in precarious jobs in the country.
TheTUCP Partylist Agenda in the next two years will be geared towards realization of quality well-being and life of dignity for everyone. This includes advocacies that promote the interest and welfare of workers, consumers, and other basic sectors of the society on urgent issues such as security of tenure and jobs, stopping contractualization of workers, and pushing for living wage. The Party list shall also pursue steps in the next two years towards expansion and institutionalization of social protection programs which include job guarantee, unemployment insurance, and universal access to social services such as healthcare, water, and electricity.
Mr. Johnson said that unemployment is a problem, but the real problem now especially in the Philippines is vulnerable employment.
As of 2013, unemployment rate in the Philippines stood at seven percent (7%) while the gross domestic product (GDP) remained high at around seven percent (7%).
“It is good news that the Philippines still has strong economic growth, but how is this translated to the people. The real challenge for the Philippines is how to achieve sustainable and inclusive growth,” added ILO’s Johnson.
Forty percent (40%) of those with employment are in vulnerable jobs – lowly paid, family workers are unpaid, without security of tenure. ‘The income gap has to be addressed,” remarked Mr. Johnson.
“Social protection such as unemployment insurance will reduce the problems some of the major problems currently faced by the government. If Vietnam can implement unemployment insurance, I see there is no reason the Philippines can’t do it. The challenge for the Congress of the Philippines is how to pass a legislation on unemployment insurance,” said the ILO-Philippines country director.
Responding to Mr. Johnson and speaking before the media and leaders of labor federations in Mindanao, Visayas and Mindanao, TUCP Party –List Raymond Democrito Mendoza committed to file a bill that will mandate guaranteeing unemployment insurance to everyone.
The solon said that the House bill on unemployment insurance that he will file will be in addition to the bill that he co-authors which promotes the welfare of workers in the informal sector – the Magna Carta for Workers in the Informal Economy (MCWIE). The The Committee on Labor and Employment of the House of Representatives conducted its first hearing on the bill on January 22.
In the recently concluded General Assembly of TUCP-Partylist in Davao City on February 3, the Party highlighted the problems of poverty, inequality, and the increasing number of those in precarious jobs in the country.
TheTUCP Partylist Agenda in the next two years will be geared towards realization of quality well-being and life of dignity for everyone. This includes advocacies that promote the interest and welfare of workers, consumers, and other basic sectors of the society on urgent issues such as security of tenure and jobs, stopping contractualization of workers, and pushing for living wage. The Party list shall also pursue steps in the next two years towards expansion and institutionalization of social protection programs which include job guarantee, unemployment insurance, and universal access to social services such as healthcare, water, and electricity.
Wednesday, January 29, 2014
Workers call for reformatting of the power industry
The power industry needs not just a reboot but a major reformatting to better serve the country’s current and future energy needs and to satisfy the people’s clamour for affordable and sustainable power.
This, according to the labor coalition Nagkaisa, should be the new frame in seeking amendments or replacement to the failed Electric Power Industry Reform Act or EPIRA.
The group made this challenge as some of its leaders attended the Department of Energy’s (DoE) consultations on EPIRA amendments while its members called for the law’s scrapping in a demonstration held outside the Legends Hotel in Mandaluyong City.
“A bad law like EPIRA may need some amendments to address the current mess. But a wrong policy such as wholesale privatization can only be addressed by replacing it with a new one, a better one,” stated Josua Mata, one of the convenors of Nagkaisa.
Mata, who is also the secretary general SENTRO, told the DoE that workers will engage the amendment process in Congress and at the same time work for its replacement when such is probable amid the incurability of EPIRA and the viability of other options.
Another convenor, Louie Corral of the Trade Union Congress of the Philippines (TUCP), said amendments are necessary on issues of cross-ownership; the generation being a ‘non-public’ utility, reforms in the ERC (composition and rate-setting methodology); privatization of the transmission system and the Agus-Pulangi hydro complexes in Mindanao; retail competition and open access; and on electric cooperatives, among others.
It can be recalled that in a petition letter submitted to President Aquino during the Labor Day celebration of 2012, Nagkaisa raised the following issues to the Executive, some of these require legislative actions:
1. Removal of oil and power from EVAT coverage;
2. Stopping the indexation of/or pegging the prices of natural gas and geothermal steam to international prices of oil and coal;
3. Stopping the ERC’s implementation of Performance Based Rate (PBR) methodology as this allows power firms to increase rates in anticipation of future expansion and other capital expenditures; and,
4. Reforming the Energy Regulatory Commission (ERC).
The group also bats for the re-nationalization of the transmission lines and the permanent stay in the planned privatization of the Agus-Pulangi.
Partido ng Manggagawa spokesperson, Wilson Fortaleza, another convenor said the country and the people will not accept another 13 years of failed rule under EPIRA.
“It’s time to rethink and come up with a new model of public power that is completely different from what the industry is, before and under EPIRA. Fortunately we are blessed with so much national potential to do that. It is only the government that thinks it can’t be done without the prescribed track imposed by the ADB and World Bank,” said Fortaleza.
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