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