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

Wednesday, September 24, 2014

TUCP-Nagkaisa challenges DOE and ERC to disclose true reserve power

A Press Statement by the Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa)

The Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) challenged both the Energy Regulatory Commission (ERC) and Department of Energy (DOE) to disclose their power supply data.
If the ERC which is supposed to be the independent power regulator 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. Perhaps the ERC is aware of the existence of other sources of power.
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 false solutions which are very expensive such as gas turbines, power barges, and generator sets are now being prioritized.
TUCP-Nagkaisa pointed out that the DOE proposal of contracting P12 billion of capacity – 300 megawatt genset or power barge with another 300 megawatt as reserve – will translate into easily a 50-centavo per kilowatt hour increase to be borne by all power consumers nationwide for two years. This will be an additional burden that workers and consumers can ill afford.
On the other hand, the TUCP-Nagkaia said that here are perhaps other more cost-effective solutions such as the Interruptible Load Program.
We are not comfortable with the ILP because it smacks of Meralco consumers subsidizing business and malls running their own generators to power up their airconditioning and electricity powered operations. However, it might, in the short run, be the least cost solution and power barges which are so expensive. It’s just like buying 15 reserve tires when all you need is 1 for your car.
There is 1,300 mw of ILP out there. The question is who is campaigning for ILP participants to come on board to address the power crisis. Or is the DOE leaving the negotiating to Meralco? We can safely assume that it is being left entirely up to Meralco and that the DOE is again abdicating on its responsibilities. What has the DOE has done? Have they requested the President and the economic cluster of the cabinet to campaign with the potential ILP participants to open themselves to the ILP?
TUCP-Nagkaisa projections factor in ILP using diesel at P45 per liter as costing the consumers only an additional 10 centavos per kilowatt hour. You will have the added advantage that the 10 centavo increase will only be for the months you actually use ILP which can be as little as 3 months. Also, only customers in Luzon will be burdened, sparing Visayas and Mindanao.
TUCP-Nagkaisa has also advanced the adoption of corporate-wid – and not just voluntary – demand-side management (DSM). Raising airconditioning by 1 degree will result in less demand for power and free up capacity.
We are looking at DSM where industrial operations will be compensated for running at off-peak hours. Why doesn’t ERC and DOE look to a solution that will not bring up power rates and that will lower carbon emission.
“But the first thing is to get the data right. Even now TUCP suspects that a lot of available power is being concealed. Take the retail suppliers who are providing the power needs of big industrial and commercial power users. Only 60% of the total capacity they have is under take-or-pay contracts with these large users. Where is the rest of the 40%? Are they just waiting for ERC to lift its current cap on prices in the WESM? And there is no more cap they will bid in?”
TUCP has conditionally supported the grant of emergency powers as long as it does not increase power rates. 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.
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. - Samar News

TUCP to employers: Impose flexi-time, flexi-work schemes

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MANILA, Philippines - Labor group Trade Union Congress of the Philippines (TUCP) on Tuesday called on private and government agencies to adopt interim measures, such as implementing a flexi-time and flexi-work schemes, to maintain productivity of their workers.

TUCP also suggested that employers take the initiative to adjust their internal tardiness rules.

The group came up with the proposals as more workers' productivity has been affected by the daily traffic jams and deteriorating mass transport system in the metropolis.

TUCP also encouraged employers to employ a compressed four-day work week after consulting with their employees without cutting wages.
"Workers are making sacrificial adjustments already. They are waking up early and arriving home late. They are exposed to all kinds of pollution, stand in long queues, snugged in crowded MRT and LRT trains. And recently we are all victims of massive urban flooding. All these makes metro workers stressed upon arriving at their workplaces eventually affecting the quality output of workers in one way or the other. The need for flexible work arrangement acceptable to the workers and their employers,”TUCP-Nagkaisa Spokesperson Alan Tanjusay said.

On the part of the government, Tanjusay said it must improve the environment by giving tax incentives to employers that would adopt the stress-minimizing and time-saving measures.

It can, in the meantime, also use its entire fleet of service vehicles including those in the government-owned and controlled corporations and government financial institutions in providing shuttle and carpooling for private and public sector workers.

He said it is also possible for companies in the export processing zones to construct mass housing for their workers within or near their plants and factories for employees to cut travel time. - By Dennis Carcamo (philstar.com)

Encourage companies to ease stress of commuting to work—TUCP

As Metro Manila continues to suffer from horrendous traffic and congested mass transport, the country’s largest labor group called on the government yesterday to provide tax incentives to companies which implement “time-saving” measures for their commuting employees.

In a statement, Trade Union Congress of the Philippines (TUCP) spokesperson Alan Tanjusay said this will encourage the private sector to adopt schemes to ease the stress of employees from daily commuting woes which has now become the “new normal.”
“The new normal is already happening. Workers are making sacrificial adjustments already. They are waking up early, arrive home late,” Tanjusay said.

He said daily stress of commuting would have a negative impact on the productivity of companies in the long run.

TUCP said one of proposed options for companies to maintain the efficiency of their operation is a flexible time scheme which will allow workers to complete their regular eight-hour duty depending on the time of their arrival at their workplace.

It also said some companies could practice a compressed work week to allow employees to work for only four days a week with slightly longer working hours.

Tanjusay said companies could also explore the possibility of temporarily relaxing their “internal tardiness rules” and provide common shuttle or car pool services to workers.

“Employers would adopt the stress-minimizing and time-saving measures by giving them tax incentives,” Tanjusay said.

Aside from the tax deductions, the government could tap fleet service vehicles from government-owned and controlled corporations and financial institutions to provide similar car pooling services to private and government employees, he said. - by Samuel Medenilla / Manila Bulletin