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.

“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

House Ad Hoc panel working full swing to pass Bangsamoro Basic Law

Ad Hoc Comm. on Bangsamoro Chair Rufus Rodriguez conducting its first meeting with the 8 Vice-Chairs and its Secretariat 2014Sep11

While the House plenary conducts marathon sessions zeroing in on the proposed 2015 P2.606-Trillion national budget, Speaker Feliciano Belmonte today declared "We have set the ball rolling in creating this Ad Hoc committee and it's systems go" for the proposed Bangsamoro Basic Law.

Hon. Feliciano Belmonte, Jr."The passage of a Bangsamoro Basic Law is our fundamental role as legislators recognizing and responding to the call of our diverse culture as Filipinos. It is also our contribution to a global quest for genuine and sustainable peace," Belmonte stressed.

Wasting no time, the House Ad Hoc Committee to review, evaluate and proposed legislation relative to the Comprehensive Agreement on the Bangsamoro, chaired by Cagayan de Oro City Rep. Rufus Rodriguez, has approved its Rules of Procedure to guide its deliberations.

"We are tired of war. We cannot afford to lose time. We want peace," Chairman Rodriguez exclaimed after their organizational meeting Tuesday morning, echoing the sentiments of lawmakers especially those from Mindanao.

Gratified by the enthusiasm shown by his colleagues during the initial Ad Hoc meeting, Rodriguez revealed that they agreed to hold open public hearings, starting September 24 until December 17, five days a week, with hearings to be conducted in Zamboanga, Zamboanga Sibugay, Basilan, Sulu, Tawi-Tawi and Marawi, among others.

Hon. Rufus B. Rodriguez"We have decided to give one day for each of these areas to give ample time for concerned people in the said areas to participate actively in the deliberations," Rodriguez added.

The 75-member Ad Hoc Committee represents leaders and members of the majority coalition and five members of the minority group.

During the interim, the committee will be completing the line-up of resource person-invitees or guest who could give valuable insights and proposal to improve or fine-tune the provision in the proposed Bangsamoro Basic Law contained in HB 4994.

HB 4994 is entitled: "An Act providing for the Basic Law for the Bangsamoro and abolishing the Autonomous Region in Muslim Mindanao, repealing for the purpose Republic Act No. 9054, entitled 'An Act to strengthen and expand the Organic Act for the Autonomous Region in Muslim Mindanao,' and Republic Act No. 6743, entitled 'An Act providing for the Organic Act for the Autonomous Region in Muslim Mindanao,' and for other purposes."

It is interesting to note that the authors of the proposed law consists of the leaders of the Majority coalition led by Speaker Belmonte, among them are: Deputy Speakers Henedina Abad, Giorgidi Aggabao, Sergio Apostol, Pangalian Balindong, Carlos Padilla and Roberto Puno; with Majority Leader Neptali Gonzales II; and Reps. Mel Senen Sarmiento; Enrique Cojuangco; Mark Llandro Mendoza; Eleandro Jesus Madrona; Elpidio Barzaga, Jr.; Antonio Lagdameo, Jr.; Rolando Andaya, Jr.; Nicanor Briones; and Raymond Democrito Mendoza.

Recalling recent events, the Comprehensive Agreement on the Bangsamoro (CAB), signed on March 27, 2014, signalled the end of the decades-long armed conflict in Mindanao that has posed major setbacks to the full progress and development of the country, Belmonte and his co-authors pointed out.

"The negotiated CAB outlines the mechanisms, processes, and modalities through which the parties aim to establish and entrench a regime of peace, development, social justice, and the rule of law in the conflict-ridden areas and communities in Southern Philippines," the authors stressed.

Furthermore, inspired by the constitutional foundation on autonomous regions under the 1987 Constitution, the CAB prescribes the design for a new political entity to build upon the vital reforms introduced by the current government of the Autonomous Region in Muslim Mindanao (ARMM), they added.

"The proposed Bangsamoro entity will enhance existing systems and procedures, as well as establish a new set of institutional arrangements and modalities between the central government and the autonomous government with respect to power-sharing, wealth- and revenue-sharing, transitional aspects, and normalization," Belmonte assured.

Chairman Rodriguez said that, among other important considerations, his committee is will never compromise on the issue of constitutionality of all the provisions embodied in the proposed Basic law.

"We will make sure that it will be a win-win framework for all Filipinos," Rodriguez stressed. - by Dionisio P. Tubianosa, Media Relations Service-PRIB

TUCP calls for ERC, Napocor revamp

MANILA, Philippines - Labor group Trade Union Congress of the Philippines (TUCP)- Nagkaisa on Tuesday expressed support for the granting of emergency powers to President Benigno Aquino III to address the power crisis.

The group's support entails the condition that the proposed solution will not drive up electricity rates and that there be a revamp of both the Power Sector Assets and Liabilities Management Corporation (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 Department of Energy (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.

TUCP-Nagkaisa accused PSALM of criminal negligence for not including in its budget for operations the pending case of the illegally terminated workers of the National Power Corporation.

The recent Commission on Audit report on both the financial and operational audit of the ERC showed it has failed to inspect 125 distribution utilities as to possible metering violations, allowing an overcharging of the bills of millions of customers.

“We will no longer tolerate the intellectual dishonesty and corruption in the DOE, the ERC and PSALM. Workers and their families will no longer be the whipping boys to increase the corporate profits of the power industry up. Workers need also their fair share now,” Corral said.

He noted that while it is difficult to obtain a wage adjustment in Congress and the regional wage boards, it is so easy for the power sector to obtain an increase in their power rates before the ERC.

“The ERC even allows Meralco (Manila Electric Company) to charge its customers for future expenditures and projected operational costs, three years into the future. In effect, the consumer is made to advance for the capital expenditures of Meralco," Corral said.

The TUCP-Nagkaisa decried the failure of the PSALM to factor in the case of the illegally terminated NPC employees.

“Under their Operational Management Agreement, PSALM is in charge of maintaining the assets to answer for the stranded costs of NPC. The biggest elephant in the room was the pending Supreme Court case involving the workers of the NPC. It was the biggest item that would have to be paid,” TUCP-Nagkaisa spokesperson Alan Tanjusay said.

He said the TUCP-Nagkaisa expressed alarm that some of the solutions listed by the DOE are gas turbines and diesel-powered generation sets.

“This will drive the power rates up. 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. Ordinary workers and their families are the ones being punished by for the lack of forwards planning of DOE,” Tanjusay said. - By Dennis Carcamo (philstar.com)

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