MANILA, Philippines - Alarmed by the current power situation in some parts of the country following the onslaught of Typhoon "Glenda," the Trade Union Congress of the Philippines said Monday that it will meet with various business and labor groups this week to draw up measures to address the problem.
TUCP executive director Louie Corral said the Aquino administration has yet to come up with solution to the current energy situation.
Several provinces and areas in Metro Manila have been experiencing power outages after the typhoon crossed Luzon last week.
“TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis precluded by prolonged rotational brownouts currently prevailing in many key areas Luzon and in Mindanao," Corral said.
He added: "TUCP wants the government to be prepared when the ‘perfect storm,’ caused by lack of power policy, hits the country because it’s the workers who’ll be whipped hard when the storm comes."
The group said that with one of the highest electricity rates in the world, the country remains unattractive to new investments that create quality jobs resulting to a static unemployment of 3.046 million in April 2013 to 2.924 million in April 2014 while underemployed are 11.057 million and 11.501 million covering the same period.
With the rotational brownouts in the equation, the TUCP also fears many jobs might be retrenched with companies affected by inadequate power supply.
The TUCP and its labor coalition called Nagkaisa has recommended twice to President Benigno Aquino III during the previous Labor day dialogue since 2013 the creation of a multi-agency, multi-sectoral presidential task force headed by him and composed of the economic and infrastructure clusters of the cabinet, business chambers, labor, consumer and power industry players.
The aim of the task force is to address the insufficiency of power and the need to determine affordability and competitiveness of power rates in the country.
Based on the recommendation, Energy Secretary Jericho Petilla last May issued an order creating a study group under the DOE.
The TUCP and the Nagkaisa, however, refused to participate saying that they were asking for a presidential task force, not a study group.
Before the onset of rotational brownouts in Metro Manila, Corral said the TUCP urged Petilla to declare a national emergency on power "so that collectively we come up with the right solutions."
“The fate of all industry roadmaps particularly the employment targets is dependent on how we address the power crisis right now. We need a truthful picture of our future power supply so that we can come up with clear strategies and coping mechanisms and avert companies shutting down and retrenchments of workers," Corral said.
The TUCP is recommending that the government temporarily return to the power generation business until there is sufficient supply to restore business confidence, a return to tariff-setting based on 12 percent cap return-on-rate-base (RORB) to bring down the electricity prices to make the country reghionally competitive.
The group also suggests the suspension of Wholesale Electricity Spot Market in favor of bilateral contracting between generators and distributors overseen through a public auction by DOE and Energy Regulatory Commission to ensure true costs and not speculative and “gaming” costs. - Philstar
Monday, July 21, 2014
Workers, businessmen unite in hope to find answers to power woes
IN A rare opportunity, employers and employees find common ground in finding the urgency to address the emerging power crisis in the country.
In a statement, the Trade Union Congress of the Philippines (TUCP) said that business and labor groups are set to meet on Wednesday to discuss the power crisis in the country.
"We have no national strategy to address the looming power crisis. So, the TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis," said TUCP executive director Louie Corral.
He said the two sectors often fighting over labor issues deemed it necessary for them to be united in helping the government find an effective solution to the power crisis.
"The fate of all industry roadmaps particularly the employment targets is dependent on how we address the power crisis right now. A flawed power industry roadmap will be fatal to the economy. We cannot afford to hinge on the day-to-day weather predicament the fate of the employment of millions of workers," said Corral.
To recall, labor groups have already asked President Benigno Aquino III as early as last year to head a multi-agency, multi-sectoral presidential task force composed of the economic and infrastructure clusters of the cabinet, business chambers, labor, consumer and power industry players with the aim to address the power woes of the country.
Energy Secretary Jericho Petilla had responded last May by creating a study group under the Department of Energy (DOE), instead, said the TUCP.
Labor groups refused to participate, saying what they asked for is a presidential task force and not a study group.
TUCP spokesman Alan Tanjusay said they are wary that the rotational brownouts could ultimately result to severe job losses across the country.
"With the rotational brownouts in the equation, TUCP fears many jobs might be retrenched with companies affected by inadequate power supply," said Tanjusay in a phone interview.
He noted how the Department of Labor and Employment (Dole) had recorded last year about 40,000 people losing their jobs under normal circumstances, or due to slump in demand and high cost of production.
"If the government does not come up with the right strategy to address the problem, the numbers could easily increase dramatically to almost double," said Tanjusay. (HDT/Sunnex)
In a statement, the Trade Union Congress of the Philippines (TUCP) said that business and labor groups are set to meet on Wednesday to discuss the power crisis in the country.
"We have no national strategy to address the looming power crisis. So, the TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis," said TUCP executive director Louie Corral.
He said the two sectors often fighting over labor issues deemed it necessary for them to be united in helping the government find an effective solution to the power crisis.
"The fate of all industry roadmaps particularly the employment targets is dependent on how we address the power crisis right now. A flawed power industry roadmap will be fatal to the economy. We cannot afford to hinge on the day-to-day weather predicament the fate of the employment of millions of workers," said Corral.
To recall, labor groups have already asked President Benigno Aquino III as early as last year to head a multi-agency, multi-sectoral presidential task force composed of the economic and infrastructure clusters of the cabinet, business chambers, labor, consumer and power industry players with the aim to address the power woes of the country.
Energy Secretary Jericho Petilla had responded last May by creating a study group under the Department of Energy (DOE), instead, said the TUCP.
Labor groups refused to participate, saying what they asked for is a presidential task force and not a study group.
TUCP spokesman Alan Tanjusay said they are wary that the rotational brownouts could ultimately result to severe job losses across the country.
"With the rotational brownouts in the equation, TUCP fears many jobs might be retrenched with companies affected by inadequate power supply," said Tanjusay in a phone interview.
He noted how the Department of Labor and Employment (Dole) had recorded last year about 40,000 people losing their jobs under normal circumstances, or due to slump in demand and high cost of production.
"If the government does not come up with the right strategy to address the problem, the numbers could easily increase dramatically to almost double," said Tanjusay. (HDT/Sunnex)
Sunday, July 13, 2014
Parts of Luzon suffer rotating power outages
MANILA, Philippines - Parts of Luzon experienced rotating power interruptions lasting up to three hours yesterday due to supply deficiency brought about by the unavailability of some power plants, according to the Manila Electric Co. (Meralco).
Meralco started the manual load dropping, a way of rationing power, at 10:27 a.m., resulting in rotating blackouts of two to three hours in portions of Tutuban, Manila; Calumpit, Meycauayan, Marilao and Sta. Maria in Bulacan; Bacoor, Cavite; and Grace Park in Caloocan. Parts of Quezon City also experienced power outages.
The rotating power outages ran from 10 a.m. to 4 p.m. and again from 7 p.m. to 9 p.m.
Energy Secretary Carlos Jericho Petilla said the situation is expected to return to normal today.
The supply deficiency stemmed from the scheduled maintenance shutdown of the Ilijan natural gas power plant in Batangas, owned and operated by Kepco Philippines Inc. and which sources its supply from the Malampaya natural gas facility in offshore Palawan.
The Ilijan plant is one of the three natural gas plants supplying 30 percent to 40 percent of Luzon’s energy requirements.
Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1
“The Ilijan plant had to undergo pigging (pipeline inspection gauge) activities,” said Meralco spokesman Joe Zaldarriaga.
The pigging procedure also intends to eliminate accumulated deposits, which affect the overall productivity of the facility, according to the Department of Energy (DOE). The process will clean the nearly 15-kilometer pipeline of the plant, which originates all the way from the Malampaya platform.
The Calaca coal-fired power plant in Batangas also went on maintenance shutdown but went back online yesterday.
As a result of the supply deficiency, the National Grid Corporation of the Philippines put the Luzon grid on red alert yesterday.
A red alert means there is severe power deficiency, while a yellow alert means reserves are below the minimum level set by the regulator. Yellow alert is reached when the total reserve is less than the capacity of the largest plant online. For the Luzon grid, this is usually equivalent to 647 megawatts, or one unit of the Sual power plant.
Augmenting the power supply deficiency was the government’s so-called Interruptible Load Program (ILP).
ILPs are generating units, which are the back-up capacity of all industries around the country such as malls.
“The ILP is in place so there’s less (blackout) in Meralco’s franchise area,” Petilla said.
Malacañang also assured the public yesterday that authorities were on top of the situation as the maintenance activities were ongoing.
Deputy presidential spokesperson Abigail Valte said over radio dzRB that authorities were closely monitoring the tight supply due to emergency maintenance.
“We do ask for the understanding of our citizens and their cooperation... We can take small steps to conserve energy over the weekend because that will help in managing the demand,” Valte added.
National emergency on power called
Despite the assurance from Malacañang, the Trade Union Congress of the Philippines (TUCP) yesterday called for the declaration of a national emergency on power to prevent a possible massive displacement of workers due to the power crisis.
The TUCP also asked the Aquino administration to establish a multi-agency group to address the power crisis and protect workers from blackouts and rising electricity rates.
“All it takes is presidential courage to announce an emergency and the need for a national response,” the TUCP said in a statement.
The TUCP said the ASEAN integration in 2015 would require a clear energy roadmap to encourage foreign investors to pour their investments in the country and promote employment. – With Mayen Jaymalin, Aurea Calica , Philstar
Meralco started the manual load dropping, a way of rationing power, at 10:27 a.m., resulting in rotating blackouts of two to three hours in portions of Tutuban, Manila; Calumpit, Meycauayan, Marilao and Sta. Maria in Bulacan; Bacoor, Cavite; and Grace Park in Caloocan. Parts of Quezon City also experienced power outages.
The rotating power outages ran from 10 a.m. to 4 p.m. and again from 7 p.m. to 9 p.m.
Energy Secretary Carlos Jericho Petilla said the situation is expected to return to normal today.
The supply deficiency stemmed from the scheduled maintenance shutdown of the Ilijan natural gas power plant in Batangas, owned and operated by Kepco Philippines Inc. and which sources its supply from the Malampaya natural gas facility in offshore Palawan.
The Ilijan plant is one of the three natural gas plants supplying 30 percent to 40 percent of Luzon’s energy requirements.
Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1
“The Ilijan plant had to undergo pigging (pipeline inspection gauge) activities,” said Meralco spokesman Joe Zaldarriaga.
The pigging procedure also intends to eliminate accumulated deposits, which affect the overall productivity of the facility, according to the Department of Energy (DOE). The process will clean the nearly 15-kilometer pipeline of the plant, which originates all the way from the Malampaya platform.
The Calaca coal-fired power plant in Batangas also went on maintenance shutdown but went back online yesterday.
As a result of the supply deficiency, the National Grid Corporation of the Philippines put the Luzon grid on red alert yesterday.
A red alert means there is severe power deficiency, while a yellow alert means reserves are below the minimum level set by the regulator. Yellow alert is reached when the total reserve is less than the capacity of the largest plant online. For the Luzon grid, this is usually equivalent to 647 megawatts, or one unit of the Sual power plant.
Augmenting the power supply deficiency was the government’s so-called Interruptible Load Program (ILP).
ILPs are generating units, which are the back-up capacity of all industries around the country such as malls.
“The ILP is in place so there’s less (blackout) in Meralco’s franchise area,” Petilla said.
Malacañang also assured the public yesterday that authorities were on top of the situation as the maintenance activities were ongoing.
Deputy presidential spokesperson Abigail Valte said over radio dzRB that authorities were closely monitoring the tight supply due to emergency maintenance.
“We do ask for the understanding of our citizens and their cooperation... We can take small steps to conserve energy over the weekend because that will help in managing the demand,” Valte added.
National emergency on power called
Despite the assurance from Malacañang, the Trade Union Congress of the Philippines (TUCP) yesterday called for the declaration of a national emergency on power to prevent a possible massive displacement of workers due to the power crisis.
The TUCP also asked the Aquino administration to establish a multi-agency group to address the power crisis and protect workers from blackouts and rising electricity rates.
“All it takes is presidential courage to announce an emergency and the need for a national response,” the TUCP said in a statement.
The TUCP said the ASEAN integration in 2015 would require a clear energy roadmap to encourage foreign investors to pour their investments in the country and promote employment. – With Mayen Jaymalin, Aurea Calica , Philstar
TUCP Slams DOE Sec. Petilla for Inutility on Brownouts
The Trade Union Congress of the Philippines (TUCP) chided Energy Secretary Petilla for his being inability to address brownouts and increasing electricity rates.
The group, instead, proposes a declaration of national emergency on power so that the country will cease being a victim of the vicious cycle.
TUCP described the “red alert” status issued by the Department of Energy, warning as to insufficient supply this weekend as the tip of the iceberg.
“Our ship-of-state is sailing full speed ahead, in a collision course with the twin -peak iceberg of lack of power and MERALCO’s never-ending price increases. The DOE is placing our economic take-off at risk and is setting the stage for an impending economic meltdown,” said TUCP Executive Director Luis Corral.
“The TUCP requests that the DOE Secretary to call a spade a spade and advice President Aquino that there is now an emergency in the power sector, requiring a multi-agency response with clear directions from the President, “said Corral.
The labor center in a two-hour audience with President Aquino this April 30 requested the President to declare an emergency and establish a multi-agency group under him to address the power crisis. The DOE instead set up a task force study group which the TUCP and labor coalition Nagkaisa..
Corral laid the responsibility with the DOE for not laying down clear policy parameters and accompanying strategies to ensure secure power supply or to define competitive rates.
“The DOE doesn’t have these two items which can be technically defined by engineers, financial analysts and industry practitioners. In the absence of crisis leadership, electric power policy is veering from one Supreme Court case, still unresolved, to a new Supreme Court case, from ERC caps on a supposedly free-market activity to a more complex two price-cap mechanism and now to a pitiful DOE Task Force on Power Rates whose arcane and complex debates are further obscuring one central fact: That power Philippine Power Policy is in this climate of drift is firmly in the hands of a socially irresponsible and financially greedy power generation sector,” he explained.
In the midst of this, consumers are supposed to rely on the oversight of an Energy Regulatory Commission headed by the Napoles-challenged Zeny Ducut,” said TUCP spokesperson Alan Tanjusay.
“While there is a lack of secure and reliable supply, government should step in to put up additional capacity. If bilateral contracts between power distributors and generators will better lower rates and approximate true costs, then suspend the WESM until a technically developed percentage of supply reserve is set up to engender real competition. If there is cheap hydropower available during the rainy season, then run it instead of keeping it as ancillary reserve while the more expensive coal and oil plants are run,” Tanjusay said..
He said this can be done without need of amending EPIRA,” All it takes is Presidential courage to announce an emergency and the need for a national response. Then all the players can be prodded, cajoled and otherwise mobilized to restore sanity to the electricity industry."
The TUCP also called for an end to “blue skies” wishful thinking that somehow the DOE target to increase solar from 50 Megawatts to 500 Megawatts, will ease the burden of the supply deficit.
Solar has at best an efficiency capacity at best of 20%, 500 MW really means 100 MW and that will never be large enough or reliable enough to be base load for large industries. Also, this will be done with a feed-in-tariff that will jack up rates by an average of 18 centavos per kWh for the next 20 years.
"Solar seems to be the flavor of the month, Two years ago the flavor was privatizing the power barges and last year it was pushing generation sets. In Mindanao DOE could have rehabilitated the Agus Pulangui hydro-electric complex as demanded by Mindanawons, they did not , so the UP experts are predicting 200 plus days of brownouts for Mindanao next year. In the meantime the DOE rushed implementation of the Retail Competition and Open Access program which we fear will further drive up rates for the captive residential households of MERALCO,” Corral added.
TUCP attributes the deflated 5.9% GDP growth rate in the first quarter as being driven by insecurity of businesses in our power supply. TUCP also attributed the inflation rate of 4.7% in May, the highest in 30 months, on the spiraling cost of power. They said energy officials preen with confidence about the manageability of our power crisis and yet we are made to pay for their failure of political leadership.
The labor group said the country is hit by the triple whammy of spiraling costs of goods and commodities, an interruptible load program that allows Robinson's and SM to power up their generators to energize the lights and air-conditioning of their malls when there are NCR brownouts and be able to charge it to MERALCO customers, and now the real threat of retrenchments because businesses are losing because of no power and high power costs.
TUCP has warned that the ASEAN Integration come 2015 requires a clear energy roadmap. "A wrong-headed energy roadmap will be fatal to all other industry roadmaps. If there is no power, there will be no investors and there will be no jobs," Tanjusay said.- Bohol Standard
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