Thursday, September 18, 2014

House begins work on Bangsamoro law amid kinks

MANILA - The Bangsamoro Basic Law (BBL) is expected to be the key to a lasting peace in Mindanao. However, the start of its legislation has turned out to be rather problematic.

House Majority Leader Neptali Gonzales II said the closed door organizational meeting of the ad hoc committee on Tuesday turned out some problems.

"Unang-una, kita niyo naman kahapon kaagad that's organizational meeting of ad hoc committee, marami na kinks. And si committee has requested the committee on rules to have to meet kahit may plenary kami Wednesday next week. We will grant them, pwede magsimula sila before session starts 9 a.m. 'til 2 p.m. Mas kailangan quorum pagdating ng hapon," he said.

Gonzales thumbed down plans to invite as resource persons former Autonomous Region in Muslim Mindanao (ARMM) Governor Nur Misuari, who has been blamed for the 2013 siege of Zamboanga.

"DOJ (Department of Justice) has no intention of applying for the withdrawal of warrant of arrest. Di ko alam how committee can go about it considering we have no power to stop implementation of warrant dahil that's a judicial function, not a legislative function."

The House is on day 3 of plenary deliberations on the 2015 national budget. Under the rules, no committee can hold hearings during this time unless with prior authorization.

Gonzales said all committees have been allowed to meet during the coming 3-week break.

"Nothing prevents the committees including the ad hoc committee to meet during the break. Nakita ko schedule, napag-agree-han mukhang at least 7 ang gusto outside committee meetings," he said.

The ad hoc committee finds itself in the same boat as the energy committee, which is also hammering out an equally important piece of legislation -- a joint resolution authorizing President Aquino to contract additional power generating capacity to address a power crisis in the summer of 2015.

Both committees will be granted permission to hold hearing alongside the budget plenary for so long as they can rush to the plenary during quorum calls.

WARRANTS VS MNLF, BIFF

Cagayan de Oro Representative Rufus Rodriguez, who chairs the committee, told ABS-CBN they agreed to ask the DOJ to apply for a suspension of the warrants of arrest for Nur Misuari and Umbra Kato to allow them to attend the congressional hearings in Manila on behalf of the Moro National Liberation Front (MNLF) and the Bangsamoro Islamic Freedom Fighters (BIFF).

The panel expects to finish the bill by November 30 and have it enacted by Congress by December 17.

House Speaker Feliciano Belmonte previously declared "we have set the ball rolling in creating this Ad Hoc committee and it's systems go" for the proposed Bangsamoro Basic Law.

"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.

The ad hoc committee 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.

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

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."

The authors of the proposed law consists of the leaders of the majority coalition led by Belmonte, among them are: Deputy Speakers Henedina Abad, Giorgidi Aggabao, Sergio Apostol, Pangalian Balindong, Carlos Padilla and Roberto Puno; with Gonzales; and Representatives 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. - By RG Cruz, ABS-CBN News

‘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

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

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