ERC okays power supply deal between SMC unit, Bicol co-op
MANILA, Philippines - The Energy Regulatory Commission (ERC) has approved the contract allowing San Miguel Energy Corp. (SMEC) to sell power to an electric cooperative in Bicol.Under the deal, SMEC, the energy arm of the San Miguel conglomerate, can now supply power to Sorsogon II Electric Cooperative Inc. (Soreco II) for two years.
“The Commission provisionally approves the energy supply contract between Sorsogon II Electric Cooperative Inc. and SMEC,” the regulator said.
Soreco II and SMEC filed an application for the energy supply contract in September last year.
The parties said the contract of state-run National Power Corp. (Napocor) to supply electricity to Soreco II has already expired.
Soreco II said it is mandated by the Electric Power Industry Reform Act to ensure the quality, reliability, security and affordability of its power supply.
It has the obligation to supply electricity in its captive market at the most affordable cost, it added.
“There is a necessity for the immediate and provisional approval of the instant application in order that there will be no undue disruption in the power supply,” Soreco II and SMEC said.
SMEC owns the 1,292-megawatt (MW) Sual coal-fired thermal power plant in Pangasinan that is operated by TeaM Energy Corp. The power plant is composed of two units with an installed capacity of 647 MW.
Under the contract, SMEC will sell between 4,000 MW-hours (mwh) to 6,000 mwh of power per month to Soreco II. SMEC will deliver the power at a voltage of 13,800 kilovolts.
“The applicable fees of Soreco II’s contracted monthly or hourly energy consumption are broken down into hourly rates,” ERC said. Rates vary from P2 to P6 per kilowatthour depending on the day and time of delivery.
Other existing customers of SMEC include Camarines Sur 1 Electric Cooperative, Quanta Paper, Ilocos Norte Electric Cooperative, Central Azucarrera de Tarlac and Isabela 1 Electric Cooperative.
GENERAL SANTOS CITY (MindaNews / 20 Nov) – On the eve of the
fifth anniversary of the Ampatuan Massacre, electricity supply for the
entire province of Maguindanao is in danger of being cut off because of
the P800-million debt incurred by its electric utility cooperative.
Energy Secretary Carlos Jericho Petilla said because the Maguindanao Electric Cooperative (MAGELCO) cannot pay its debts, the government plans to take over the power cooperative similar to what it did to another cash-strapped utility, the Lanao del Sur Electric Cooperative (LASURECO).
“We want to support MAGELCO so it can implement an effective collection system. We want to know if they need military muscle like LASURECO,” Petilla said.
The energy secretary said the government took control of LASURECO this year after its debts ballooned to P8 billion.
He said the government fielded soldiers and tanks to help LASURECO collect the electricity bills from Lanao del Sur consumers.
“We can do a similar operation here in the case of Maguindanao cooperative,” Petilla said.
He said MAGELCO failed to pay its bills for several years, resulting to the accumulation of interest on the unpaid principal.
He blamed the Ampatuan family of the financial mess of MAGELCO.
“First, the Ampatuan family did not pay their bills. When the collectors try to collect from the other consumers, these people run to the Ampatuans. The bills became unpaid,” Petilla said.
He said suppliers have presently cut off electricity to Maguindanao from 10 megawatts to only 2 megawatts because of the huge debt.
Energy Secretary Carlos Jericho Petilla said because the Maguindanao Electric Cooperative (MAGELCO) cannot pay its debts, the government plans to take over the power cooperative similar to what it did to another cash-strapped utility, the Lanao del Sur Electric Cooperative (LASURECO).
“We want to support MAGELCO so it can implement an effective collection system. We want to know if they need military muscle like LASURECO,” Petilla said.
The energy secretary said the government took control of LASURECO this year after its debts ballooned to P8 billion.
He said the government fielded soldiers and tanks to help LASURECO collect the electricity bills from Lanao del Sur consumers.
“We can do a similar operation here in the case of Maguindanao cooperative,” Petilla said.
He said MAGELCO failed to pay its bills for several years, resulting to the accumulation of interest on the unpaid principal.
He blamed the Ampatuan family of the financial mess of MAGELCO.
“First, the Ampatuan family did not pay their bills. When the collectors try to collect from the other consumers, these people run to the Ampatuans. The bills became unpaid,” Petilla said.
He said suppliers have presently cut off electricity to Maguindanao from 10 megawatts to only 2 megawatts because of the huge debt.
| Philippine protests against water privatization bill (Senate Bill 2997) |
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Water district employees in Mindanao to block Water Sector Reform Act Davao Today http://davaotoday.com/main/2012/09/05/water-district-employees-in-mindanao-to-block-water-sector-reform-act/ They call for the pull out Senate Bill 2997 as they say it spells doom not only for the employees of various water districts who will face job displacements once the bill is enacted, but the people’s access to this basic need, as well. DAVAO CITY, Philippines – The renewed effort to ensure the passage of Senate Bill 2997, and its counterpart House Bill 5497, also known as the Water Sector Reform Act (WSRA) last week, prompted employees of water districts in Mindanao to bolster moves to block the proposed changes in the way water is being sourced, managed and distributed to Filipinos. Simultaneous protests were conducted by employees of water districts in various places in Mindanao, Monday, in response to the nationally-coordinated action called for by the umbrella group, Water System Employees’ Response (Water), an affiliate of the Confederation for Unity, Recognition and Advancement of Government Employees (Courage). They call for the pull out SB 2997 as they say it spells doom not only for the employees of various water districts who will face job displacements once the bill is enacted, but the people’s access to this basic need, as well. Author of SB 2997, Senator Edgardo Angara, assured in a public hearing last week that there will be no privatization under the WSRA, a declaration that employees of water districts slam as “sheer deception.” Privatized water districts Edelmero Reyes, President of the Metro Cotabato Water District Employees Union told davaotoday.com in an interview that they have no doubts that SB 2997 and HB 5497 will result to “privatized water districts.” Among other provisions of SB 2997 is the emphasis on the promotion of arrangements between the government and private entity for the provision of water service in a particular area, or the so-called Public-Private Partnerships (PPP) of water services, assuming that this is the way “to reform” the failure of the water district model under Presidential Decree 198, to provide quality service. PD 198, which essentially places water resource management, development and distribution under government control, is the law that governs water services in the country for 30 years now. This is why the proposed bill is also seeking to restructure the management of water resources by consolidating service providers under the so-called Provincial Water Resource Zones (PWRZ). But Rudy Aranjuez, President of the employees’ union of the Davao City Water District is wary that this move to restructure the management of water districts will diminish government control over this basic public utility. “Nabalaka mi kay kung mapasa na kini, wala nay katungod ang city, bisan Board kay ang National na ang magbuot, unya klaro man diha nga pag makuha na sa national government hinayhinay na kini nilang ihatag o itugyan ngadto sa private sector (We are worried that once this bill is passed, the City and even the Board will lose its hold of the water district to the national leadership, and in turn gradually hand it over to private hands),” Aranjuez said. Aranjuez said with the takeover of private entities on water districts, the people may even lose the benefit of a public hearing prior to any move to increase water rates. He cites the case of the Metropolitan Waterworks and Sewerage System or MWSS where water rates increased rapidly since its privatization in 1997. Aranjuez cited that Davaoeños can even hardly afford the P114.40 monthly minimum charge for water supply service. In fact, he said, every month in Davao City, there are about 1,000 households whose water lines get disconnected for failure to pay their water bill. Toll on workers For Ferdinand Salvacion, president of the employees’ union of the Digos City Water District, at stake in this privatization scheme are also the workers of water districts. “Mao nay dakong problema sa among mga empleyado tungod kay kung i-privatize na ni, apil na pud mi apektado, (That is the problem. Privatization will certainly take its toll on us, the workers,)” Salvacion said. The profit-oriented nature of private entities, he said, makes it susceptible for them to embark on “streamlining,” a scheme to shed off workers in order to save on labor expenses and increase profits. Edelmero Reyes, President of the Metro Cotabato Water District Employees Union blames President Benigno Aquino III’s centerpiece economic program Public-Private Partnerships (PPP) behind this move to push the onerous bill. The Mindanawons against Privatization of Water and Energy Resources (M-Power) with which workers of various water employees unions have also affiliated with, is also saying that under the PPP scheme “the ultimate motive is for profit for the few and not for service for all”. M-power convener Danilo Dayanghirang said the consolidation of existing water districts under the Local Water Supply and Sanitation Company (LWSSC) in a designated Provincial Water Resource Zone or PWRZ, will easily facilitate government and private partnership’s entry in concession agreements specified under the PPP program. He also explained that the local water districts may not be abolished as promised by its proponents, however, “public control of it will definitely be diminished because the bill allows big local and foreign companies to take over the operations.” House Bill 5497, SB 2997’s counterpart proposal in Congress, is authored by Davao City 1st district representative Karlo Alexei Nograles. Alejo Rojas, assistant general manager for operations of the Zamboanga City Water District call for a unified action among various water districts in Mindanao. “Ang among position sa karon dili gyud mi mosugot nga maprivatize. We also request the Sanggunian to pass a resolution in support of opposing moves to private water districts,” Rojas said. As part of its intensified campaign, M-Power is conducting massive information and petition signing drives down to the communities, campuses and public places. The group believes that these signed petitions would serve as strong messages to the Aquino administration that privatizing water districts is a wrong option. The coalition also urges local legislators in different local legislative bodies to pass resolutions opposing the enactment of the Angara and Nograles bills. (Alex D. Lopez and Roweno R. Caballes/davaotoday.com) IBON says private power firms will only benefit from emergency powers
November 22 2014
DAVAO CITY—Research group IBON said that only big private
power firms will benefit from the emergency powers granted by Congress
to President Aquino.“The real intention of granting emergency powers may be to promote the interests of big power firms whose projects have been delayed or mothballed because of regulatory and other issues,” says IBON. IBON cited the Aboitiz-Pangilinan group as “one of the possible big business beneficiaries of emergency powers which controls the planned 600-megawatt (MW) Subic coal-fired power plant.” This as IBON expressed concern on the requirement for presidential emergency powers to implement the Interruptible Load Program (ILP) that will supposedly address power supply gap. “While ILP is gaining more prominence, tucked in House Joint Resolution (JR) 21 on the proposed emergency powers is the presidential authority to fast-track the construction of new power plants.” To do this, the Joint Resolution 21 wants to suspend various laws and regulatory requirements, stressed IBON. But IBON pointed out that the ILP has already been implemented in Visayas and Mindanao without requiring presidential emergency powers. “Aquino’s allies in Congress and energy officials are highlighting the ILP as government’s primary response to the supposed power shortage in Luzon next summer,” says IBON. IBON recalled that in 2012, the Supreme Court (SC) issued a Writ of Kalikasan against the coal plant while the Court of Appeals (CA) eventually invalidated its environmental compliance certificate (ECC) in 2013. “As such, emergency powers could be used to revive the Subic coal power plant despite the judiciary’s prior decisions,” warns IBON, noting that “under JR 21, compliance to the ECC and other requirements shall be deferred until the completion of the power project.” IBON said ILP “involves private businesses such as malls and factories to use their own generator sets (gensets) when power supply becomes critical. In return, government will reimburse them the cost of running their gensets.” According to IBON, at least 30 companies, including the country’s largest mall operators, have already signed up for the ILP. Their gensets have a combined capacity of 171.96 megawatts (MW). Meanwhile, the Department of Energy (DOE) is targeting an additional 32 companies with a total capacity of 61.53 MW to also join the ILP. The DOE estimates that the ILP will cost government around Php450 million. The amount is based on operation and maintenance costs pegged at a maximum of Php23,500 per genset monthly and fuel costs at 0.34 liters per kilowatt-hour (kWh). Despite the resolution’s approval on first reading, IBON maintained that “Congress should devote its time in crafting a law that will replace the flawed Electric Power Industry Reform Act (EPIRA).” “The country should not entrust to the private sector the power industry because of its strategic role in development and the people’s quality of living,” IBON added. (davaotoday.com) |
Group blasts Agus-Pulangi hydro plants privatization
November 19 2014
DAVAO CITY — Advocates in Lanao del Sur blasted the
proposed privatization of Agus-Pulangi hydropower plants in Mindanao by
2017.“The privatization plan lacks proper consultation and approval from the people of Lanao del Sur,” says Drieza A. Lininding, convenor of Ranaw Movement.
Lininding said “For decades, the excessive utilization of Lake Lanao has destroyed the livelihood of the people living near the lake.”
Lininding added that the government is yet to comply the environmental issues raised in a resolution issued by the Organization of Islamic Cooperation (OIC) last June 2014.
In the said resolution, it exhorted the government to “take urgent action to address the environmental problems reported because of non-compliance of the environmental standards in Lake Lanao which had caused serious environmental repercussions on people’s health, economic and social conditions.”
Resolution No. 2/41-MM was discussed during the 41st Session of the Council of Foreign Ministers (Session of Exploring Areas for Islamic Cooperation-) held in Jeddah, Kingdom of Saudi Arabia, last June 18-19.
Despite opposition from Ranaw movement and other groups, the Power Sector Assets and Liabilities Management Corp. (PSALM), a government owned-corporation, announced earlier that it will push through the privatization of the state-owned power asset Agus-Pulangi hydropower plants come 2017.
Having a capacity of 982 megawatts, it will supply beyond the 50 % of the total power requirement in Mindanao, PSALM said.
But for Lininding, pushing through with the privatization will only open the floodgates to unabated power rate hikes once it will be under the control of private firms.
“Once it will be operationalized, we fear also that power rates will soar up since it will be controlled by private corporations. We don’t see any reason why the government should surrender that to a private entity,” says Lininding.
She said that Agus-Pulangi hydropower plants are the government’s “performing assets” considered to be a source of cheap and renewable form of enegy.
“The risk and destruction posed by the dams along Agus-Pulangi plants should be revisited and addressed sooner. What the government must do is to rehabilitate these plants,” Lininding insists.
“We demand a just and equitable share from the 6 Agus plants utilizing Lake Lanao as energy resource, guaranteed by the laws.”(davaotoday.com)
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