By Eva Visperas (The Philippine Star) | Updated October 30, 2014 - 12:00am
SUAL, Pangasinan, Philippines – Team Energy, which manages and operates the Sual coal-fired power plant, yesterday vowed to cooperate with government authorities tasked to investigate the oil leak on Monday.
Froilan Gregory Romualdez III, head of external affairs and spokesman for Team Energy Corp., said there was no visible trace of the leak along the coastlines near the plant as of yesterday.
Romualdez said they have also inspected nearby fish cages, which were not in any way affected by the oil leak.
“Fishermen can be seen fishing…an indication that things are normal in the waters outside the power plant,” he said.
Romualdez said 4,000 liters of oil, which were reported to have leaked from a ruptured pipe, had been contained within the plant’s grounds.
“Our company remains committed to running the Sual power plant in a safe, reliable and environment friendly manner as it has been doing for the past 15 years,” he said.
Meanwhile, Westly Rosario, chief of the Bureau of Fisheries and Aquatic Resources and National Integrated Fisheries Technology and Development Center in Dagupan City, who sent a team to probe the oil leak, told The STAR that the oil leak was about 200 to 500 meters away from the fish cages.
Rosario said he sees no adverse effect on the fish cages. “The oil floats unless it’s too thick and the leak is widespread,” he said. source
Thursday, October 30, 2014
Philex Petroleum eyes LNG power plant
By Iris C. Gonzales (The Philippine Star) | Updated October 30, 2014 - 12:00am
MANILA, Philippines - Philex Petroleum Corp., the upstream oil and gas subsidiary of listed company Philex Mining Corp., is looking at investing in liquefied natural gas (LNG) as part of efforts to develop new sources of energy, its chairman Manuel V. Pangilinan said yesterday.
Pangilinan said the company is open to the possibility of developing an indigenous natural gas field or investing in an LNG power plant.
“In relation to either an indigenous gas field out here in the Philippines or in relation to a power plant, the answer is yes because at some point, the projection as we speak is that Malampaya will eventually run out so the country has to invest in other sources to have gas in the form of LNG,” Pangilinan said.
The Malampaya natural gas field in offshore Palawan, discovered in 1991, will run out of gas in 2024, according to data from the Department of Energy.
It is a critical source of power in Luzon as it currently supplies natural gas to three power plants in Batangas with a total capacity of 2,700 megawatts, accounting for 40 percent of supply in Luzon.
According to data on the gas field, the Malampaya field has proven reserves of 2.7 to 3.2 trillion cubic feet, of which more than one TCF has already been consumed.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
LNG, on the other hand, is natural gas that has been converted into liquid for ease of storage or transport.
With the expected depletion of gas at the Malampaya by 2024, numerous players have already expressed interest in developing LNG terminals around the country.
Pilipinas Shell Petroleum Corp., for instance, wants to build an LNG regasification terminal beside its refinery in Batangas with an estimated cost of $1 billion while First Gen Corp., the power generation company of the Lopez Group, is also aiming to build the first LNG terminal in the country near its existing natural gas power plant in Batangas.
Pangilinan said that with Malampaya’s reserves running out, it is important to be able to discover other indigenous energy sources such as what the disputed Recto Bank can possibly offer.
“We got to plan for that. Otherwise, there will be gas plants will be stranded. That’s why SC 72 is of utmost strategic importance to the country,” he said. source
MANILA, Philippines - Philex Petroleum Corp., the upstream oil and gas subsidiary of listed company Philex Mining Corp., is looking at investing in liquefied natural gas (LNG) as part of efforts to develop new sources of energy, its chairman Manuel V. Pangilinan said yesterday.
Pangilinan said the company is open to the possibility of developing an indigenous natural gas field or investing in an LNG power plant.
“In relation to either an indigenous gas field out here in the Philippines or in relation to a power plant, the answer is yes because at some point, the projection as we speak is that Malampaya will eventually run out so the country has to invest in other sources to have gas in the form of LNG,” Pangilinan said.
The Malampaya natural gas field in offshore Palawan, discovered in 1991, will run out of gas in 2024, according to data from the Department of Energy.
It is a critical source of power in Luzon as it currently supplies natural gas to three power plants in Batangas with a total capacity of 2,700 megawatts, accounting for 40 percent of supply in Luzon.
According to data on the gas field, the Malampaya field has proven reserves of 2.7 to 3.2 trillion cubic feet, of which more than one TCF has already been consumed.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
LNG, on the other hand, is natural gas that has been converted into liquid for ease of storage or transport.
With the expected depletion of gas at the Malampaya by 2024, numerous players have already expressed interest in developing LNG terminals around the country.
Pilipinas Shell Petroleum Corp., for instance, wants to build an LNG regasification terminal beside its refinery in Batangas with an estimated cost of $1 billion while First Gen Corp., the power generation company of the Lopez Group, is also aiming to build the first LNG terminal in the country near its existing natural gas power plant in Batangas.
Pangilinan said that with Malampaya’s reserves running out, it is important to be able to discover other indigenous energy sources such as what the disputed Recto Bank can possibly offer.
“We got to plan for that. Otherwise, there will be gas plants will be stranded. That’s why SC 72 is of utmost strategic importance to the country,” he said. source
JG Summit to expand Batangas coal-fired plant
By Iris C. Gonzales (The Philippine Star) | Updated October 30, 2014 - 12:00am
MANILA, Philippines - JG Summit Holdings Inc., the holding company of the Gokongwei Group is planning to expand its coal-fired power plant in Batangas City to 600 megawatts from 300 MW, according to documents from the Department of Energy.
The plant, located at Brgy. Pinamukan Ibaba in Batangas City, is among the DOE’s list of indicative power projects for Luzon.
The coal plant would have four units of 150 MW capacity each or a total of 600 MW, documents also shows.
However, JG Summit did not indicate when the project would be completed.
The Gokongwei Group’s holding company is becoming an active player in the power sector, after having acquired a 21.7-percent stake in Manila Electric Co. (Meralco).
The company’s subsidiary Universal Robina Corp., meanwhile, is also building a 46-MW bagasse-fired power plant in Negros Occidental.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
It also has investments in the petrochemical sector as it owns JG Summit Petrochemical which is the largest manufacturer of polyolefins in the country.
The DOE is also counting on the private power producers such as JG Summit to provide additional capacity for the summer of 2015 when supply would be critical.
The DOE said JG Summit has committed to make available 60 MW of capacity in time for summer next year, according to the DOE. source
MANILA, Philippines - JG Summit Holdings Inc., the holding company of the Gokongwei Group is planning to expand its coal-fired power plant in Batangas City to 600 megawatts from 300 MW, according to documents from the Department of Energy.
The plant, located at Brgy. Pinamukan Ibaba in Batangas City, is among the DOE’s list of indicative power projects for Luzon.
The coal plant would have four units of 150 MW capacity each or a total of 600 MW, documents also shows.
However, JG Summit did not indicate when the project would be completed.
The Gokongwei Group’s holding company is becoming an active player in the power sector, after having acquired a 21.7-percent stake in Manila Electric Co. (Meralco).
The company’s subsidiary Universal Robina Corp., meanwhile, is also building a 46-MW bagasse-fired power plant in Negros Occidental.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
It also has investments in the petrochemical sector as it owns JG Summit Petrochemical which is the largest manufacturer of polyolefins in the country.
The DOE is also counting on the private power producers such as JG Summit to provide additional capacity for the summer of 2015 when supply would be critical.
The DOE said JG Summit has committed to make available 60 MW of capacity in time for summer next year, according to the DOE. source
Wednesday, October 29, 2014
Aboitiz’s net profit drops 14% to P14.3b
By MST Business | Oct. 29, 2014 at 11:01pm
Aboitiz Equity Ventures, the holding company of the Aboitiz family, said Wednesday consolidated net income fell 14 percent in the first nine months to P14.3 billion from a year ago, on lower contribution of power and banking businesses.
Aboitiz Equity said in a statement the P14.3-billion net income translated into P2.58 in earnings per share.
Power accounted for 72 percent of the conglomerate’s net income in the nine-month period, followed by the banking, food, and land development strategic business units, with income contributions of 17 percent, 7 percent, and 4 percent, respectively.
Aboitiz Equity said adjusting for one-off transaction such as the P634 million gain from the sale of a couple of investments, core net income reached P13.9 billion, down 16 percent from a year ago.
“The drop in our net income does not affect the fundamental value of our businesses. Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” Aboitiz Equity president and chief executive Erramon Aboitiz said.
Aboitiz said the company would remain supportive of the government’s public-private partnership program, cognizant of the critical state of the country’s infrastructure.
He called on “the President to swiftly settle the Cavite-Laguna Expressway stalemate.”
Aboitiz Power Corp., the company’s power business, reported an 8-percent decline in net income in the nine month period to P13.2 billion.
The generation business accounted for 81 percent of earnings contributions from AboitizPower’s business segments, recording an income share of P10.8 billion in the first nine months, down 11 percent year-on-year. source
Aboitiz Equity Ventures, the holding company of the Aboitiz family, said Wednesday consolidated net income fell 14 percent in the first nine months to P14.3 billion from a year ago, on lower contribution of power and banking businesses.
Aboitiz Equity said in a statement the P14.3-billion net income translated into P2.58 in earnings per share.
Power accounted for 72 percent of the conglomerate’s net income in the nine-month period, followed by the banking, food, and land development strategic business units, with income contributions of 17 percent, 7 percent, and 4 percent, respectively.
Aboitiz Equity said adjusting for one-off transaction such as the P634 million gain from the sale of a couple of investments, core net income reached P13.9 billion, down 16 percent from a year ago.
“The drop in our net income does not affect the fundamental value of our businesses. Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” Aboitiz Equity president and chief executive Erramon Aboitiz said.
Aboitiz said the company would remain supportive of the government’s public-private partnership program, cognizant of the critical state of the country’s infrastructure.
He called on “the President to swiftly settle the Cavite-Laguna Expressway stalemate.”
Aboitiz Power Corp., the company’s power business, reported an 8-percent decline in net income in the nine month period to P13.2 billion.
The generation business accounted for 81 percent of earnings contributions from AboitizPower’s business segments, recording an income share of P10.8 billion in the first nine months, down 11 percent year-on-year. source
Meralco unit raising P40b to expand 455-MW coal plant
By MST Business | Oct. 29, 2014 at 11:01pm
San Buenaventura Power Ltd. Co., a power company majority-owned by Meralco PowerGen Corp., is raising P40 billion to finance the expansion of a 455-megawatt coal plant in Mauban, Quezon.
“We are raising about P40 billion from the debt market,” Meralco PowerGen senior vice president Angelo Lantin told reporters. The amount will be used to double the capacity of the existing 455-MW coal-fired power plant of Quezon Power Philippines Ltd., which is partially controlled by Electricity Generating Public Co. Ltd. of Thailand.
Meralco PowerGen, the power generation arm of power distributor Manila Electric Co., owns 51 percent of the San Buenaventura coal project while Egco’s subsidiary New Growth B.V. owns the remaining 49 percent. Lantin did not disclose the actual cost of the plant construction.
“We are finalizing our EPC [engineering, procurement and construction] with our preferred contractor. We are also in the process of selecting arrangers for the project financing,” Lantin said.
Meralco president Oscar Reyes said the San Buenaventura plant would help ensure the country’s long-term power supply.
“We are fully aware of prevailing power supply and demand situation where I think the Luzon grid faces fairly thin reserves until new power plant capacities come into place,” Reyes said.
“We need to have this project before the summer of 2018 so that we have some degree of relief from the risk of red alert as demand continues to increase,” he said.
San Buenaventura signed a 20-year power supply agreement with Meralco for the sale and purchase of the plant’s entire output. source
San Buenaventura Power Ltd. Co., a power company majority-owned by Meralco PowerGen Corp., is raising P40 billion to finance the expansion of a 455-megawatt coal plant in Mauban, Quezon.
“We are raising about P40 billion from the debt market,” Meralco PowerGen senior vice president Angelo Lantin told reporters. The amount will be used to double the capacity of the existing 455-MW coal-fired power plant of Quezon Power Philippines Ltd., which is partially controlled by Electricity Generating Public Co. Ltd. of Thailand.
Meralco PowerGen, the power generation arm of power distributor Manila Electric Co., owns 51 percent of the San Buenaventura coal project while Egco’s subsidiary New Growth B.V. owns the remaining 49 percent. Lantin did not disclose the actual cost of the plant construction.
“We are finalizing our EPC [engineering, procurement and construction] with our preferred contractor. We are also in the process of selecting arrangers for the project financing,” Lantin said.
Meralco president Oscar Reyes said the San Buenaventura plant would help ensure the country’s long-term power supply.
“We are fully aware of prevailing power supply and demand situation where I think the Luzon grid faces fairly thin reserves until new power plant capacities come into place,” Reyes said.
“We need to have this project before the summer of 2018 so that we have some degree of relief from the risk of red alert as demand continues to increase,” he said.
San Buenaventura signed a 20-year power supply agreement with Meralco for the sale and purchase of the plant’s entire output. source
Funds sought for Quezon coal plant expansion
Business World Online
Posted on October 29, 2014 10:46:00 PM
By Claire-Ann M.C. Feliciano, Senior Reporter
THE JOINT venture between Meralco PowerGen Corp. (MGen) and New Growth B.V. is planning to raise up to P40 billion to fund the 460-megawatt (MW) expansion of a coal-fired power plant in Mauban, Quezon.
Angelito U. Lantin, MGen senior vice-president and general manager, said that while negotiations for the engineering, procurement and construction (EPC) contract are ongoing, San Buenaventura Power Ltd. (SBPL) is also finalizing financing arrangements for the project. “We are finalizing our EPC with the preferred contractor. We are also in the process of selecting arrangers for the project financing,” Mr. Lantin told reporters on Monday.
“We are raising about P40 billion from the debt market,” he added.
SBPL is also awaiting regulatory approval for its power supply deal with Manila Electric Co. (Meralco), which will buy the electricity that will be generated by the project.
“We hope that within six months, it will be approved,” Mr. Lantin said.
“Everything is geared up for completion of these activities. We hope to issue a notice to proceed very early next year,” he added.
Meralco President Oscar S. Reyes, for his part, emphasized the importance of this power project: “We are fully aware of prevailing power supply and demand situation where I think the Luzon grid faces fairly thin reserves until new power plant capacities come into place.”
“We need to have this project before the summer of 2018 so that we have some degree of relief from the risk of red alert as demand continues to increase,” Mr. Reyes added.
In August last year, the subsidiaries of Meralco and Thailand-based Electricity Generating Public Co. Ltd. (EGCO) signed a joint development agreement for the new 460-MW coal-fired power plant. The agreement provides that Meralco’s unit, MGen, will hold a 51% stake in the project while EGCO’s unit, New Growth, will hold the remaining 49% stake.
The existing Quezon power plant -- which started commercial operations in May 2000 -- supplies the Luzon grid under a 25-year power supply deal with Meralco, which in turn distributes electricity in Metro Manila, Bulacan, Cavite and Rizal; as well as several parts of Batangas, Laguna, Quezon and Pampanga.
MGen is the power generation arm of Meralco, the country’s largest distribution utility.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
Posted on October 29, 2014 10:46:00 PM
By Claire-Ann M.C. Feliciano, Senior Reporter
THE JOINT venture between Meralco PowerGen Corp. (MGen) and New Growth B.V. is planning to raise up to P40 billion to fund the 460-megawatt (MW) expansion of a coal-fired power plant in Mauban, Quezon.
Angelito U. Lantin, MGen senior vice-president and general manager, said that while negotiations for the engineering, procurement and construction (EPC) contract are ongoing, San Buenaventura Power Ltd. (SBPL) is also finalizing financing arrangements for the project. “We are finalizing our EPC with the preferred contractor. We are also in the process of selecting arrangers for the project financing,” Mr. Lantin told reporters on Monday.
“We are raising about P40 billion from the debt market,” he added.
SBPL is also awaiting regulatory approval for its power supply deal with Manila Electric Co. (Meralco), which will buy the electricity that will be generated by the project.
“We hope that within six months, it will be approved,” Mr. Lantin said.
“Everything is geared up for completion of these activities. We hope to issue a notice to proceed very early next year,” he added.
Meralco President Oscar S. Reyes, for his part, emphasized the importance of this power project: “We are fully aware of prevailing power supply and demand situation where I think the Luzon grid faces fairly thin reserves until new power plant capacities come into place.”
“We need to have this project before the summer of 2018 so that we have some degree of relief from the risk of red alert as demand continues to increase,” Mr. Reyes added.
In August last year, the subsidiaries of Meralco and Thailand-based Electricity Generating Public Co. Ltd. (EGCO) signed a joint development agreement for the new 460-MW coal-fired power plant. The agreement provides that Meralco’s unit, MGen, will hold a 51% stake in the project while EGCO’s unit, New Growth, will hold the remaining 49% stake.
The existing Quezon power plant -- which started commercial operations in May 2000 -- supplies the Luzon grid under a 25-year power supply deal with Meralco, which in turn distributes electricity in Metro Manila, Bulacan, Cavite and Rizal; as well as several parts of Batangas, Laguna, Quezon and Pampanga.
MGen is the power generation arm of Meralco, the country’s largest distribution utility.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
Aboitiz Equity Ventures net profit declines on lower power earnings
Manila Bulletin
by James Loyola
October 29, 2014
Aboitiz Equity Ventures reported a 14 percent to P14.3 billion in the first nine months of 2014 from P16.6 billion in the same period last year due to lower earnings from its power business.
AEV logoIn a disclosure to the Philippine Stock Exchange, AEV said power accounted for 72 percent, followed by the banking, food, and land development strategic business units (SBUs) with income contributions of 17 percent, 7 percent, and 4 percent, respectively.
For the period under review, AEV posted a non-recurring gain of P380 million (versus last year’s P128 million), due to the revaluation of its power businesses’ consolidated dollar-denominated liabilities and placements, and a one-off gain of P634 million from the sale of a couple of the group’s investments.
In addition, the power business booked a non-recurring cost for the acquisition of LiMA EnerZone Corporation (formerly LiMA Utilities Corporation) (LiMA EnerZone).
Adjusting for these one-off’s, AEV’s core net income amounted to P13.9 billion, which is 16-percent lower than last year.
“The drop in our net income does not affect the fundamental value of our businesses. Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” said AEV President Erramon I. Aboitiz.
He added that “we remain supportive of the government’s public-private partnership program, cognizant of the critical state of the country’s infrastructure.”
For the first nine months of 2014, Aboitiz Power Corporation registered an income contribution of P10.1 billion, an 8 percent dip from the previous year’s P11.0 billion. When adjusted for non-recurring items, the Power SBU recorded a 15 percent year-on-year (YoY) decline in its earnings share, from P12.1 billion to P10.3 billion.
AEV’s banking business contributed Banking SBU’s income contribution for the incurred a 28 percent drop in net income to P2.4 billion in the first nine months of 2014 from P3.3 billion last year due to lower trading gains.
Pilmico Foods Corporation reported a 1-percent YoY increase in its income contribution for the first nine months of 2014, from P932.1 million to P942.2 million.
The slow growth in earnings was due to the weak performance of the Feeds division, which registered a net income of P282 million for the first nine months of the year as a result of the decline in margins and expiration of the income tax holiday of Iligan Feedmill.
Aboitiz Land, Inc. (AboitizLand), registered YoY growth of 247 percent in its net income contribution for the first nine months of 2014 to P565.4 million from P162.8 million.
“We remain on track with our strategy to build AboitizLand into a national player in the real estate industry as we remain on the lookout for expansion opportunities in Luzon,” Aboitiz said. source
by James Loyola
October 29, 2014
Aboitiz Equity Ventures reported a 14 percent to P14.3 billion in the first nine months of 2014 from P16.6 billion in the same period last year due to lower earnings from its power business.
AEV logoIn a disclosure to the Philippine Stock Exchange, AEV said power accounted for 72 percent, followed by the banking, food, and land development strategic business units (SBUs) with income contributions of 17 percent, 7 percent, and 4 percent, respectively.
For the period under review, AEV posted a non-recurring gain of P380 million (versus last year’s P128 million), due to the revaluation of its power businesses’ consolidated dollar-denominated liabilities and placements, and a one-off gain of P634 million from the sale of a couple of the group’s investments.
In addition, the power business booked a non-recurring cost for the acquisition of LiMA EnerZone Corporation (formerly LiMA Utilities Corporation) (LiMA EnerZone).
Adjusting for these one-off’s, AEV’s core net income amounted to P13.9 billion, which is 16-percent lower than last year.
“The drop in our net income does not affect the fundamental value of our businesses. Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” said AEV President Erramon I. Aboitiz.
He added that “we remain supportive of the government’s public-private partnership program, cognizant of the critical state of the country’s infrastructure.”
For the first nine months of 2014, Aboitiz Power Corporation registered an income contribution of P10.1 billion, an 8 percent dip from the previous year’s P11.0 billion. When adjusted for non-recurring items, the Power SBU recorded a 15 percent year-on-year (YoY) decline in its earnings share, from P12.1 billion to P10.3 billion.
AEV’s banking business contributed Banking SBU’s income contribution for the incurred a 28 percent drop in net income to P2.4 billion in the first nine months of 2014 from P3.3 billion last year due to lower trading gains.
Pilmico Foods Corporation reported a 1-percent YoY increase in its income contribution for the first nine months of 2014, from P932.1 million to P942.2 million.
The slow growth in earnings was due to the weak performance of the Feeds division, which registered a net income of P282 million for the first nine months of the year as a result of the decline in margins and expiration of the income tax holiday of Iligan Feedmill.
Aboitiz Land, Inc. (AboitizLand), registered YoY growth of 247 percent in its net income contribution for the first nine months of 2014 to P565.4 million from P162.8 million.
“We remain on track with our strategy to build AboitizLand into a national player in the real estate industry as we remain on the lookout for expansion opportunities in Luzon,” Aboitiz said. source
Meralco eyes P40B for power plant expansion
Manila Times
October 29, 2014 8:40 pm
MERALCO PowerGen Corp. (MGen) is raising P40 billion to finance the expansion of its 460-megawatt San Buenaventura coal power plant in Mauban, Quezon.
“We are raising about P40 billion from the debt market,” MGen SVP for commercial development Angelito U. Lantin told reporters.
Lantin said Mgen, the power generation arm of Meralco, is now in the final stage of the engineering, procurement and construction (EPC) talks with the preferred contractor for the plant’s expansion.
“We are finalizing our EPC with our preferred contractor. We are also in the process of selecting arrangers for the project financing,” he added.
He expressed confidence that Mgen’s power supply agreement with Meralco will be approved by the Energy Regulatory Commission (ERC).
“We hope that within six months, it will be approved (by ERC),” he added.
Pending the ERC approval, Lantin said they will proceed with the issuance of notices possibly by next year.
“Everything is geared up for the completion of these activities. We hope to issue a notice to proceed very early next year,” he said.
The Meralco subsidiary plans to start construction in the fourth quarter.
For his part, Meralco President and Chief Executive Officer Oscar S. Reyes said their goal is to finish the project before the summer of 2018.
“We need to have this project before the summer of 2018 so that we have some degree of relief from the risk of red alert as demand continues to increase,” he added.
Reyes said once completed, the project will boost the Luzon grid’s capacity.
“We are fully aware of the prevailing power supply and demand situation where I think the Luzon grid faces fairly thin reserves until new power plant capacities come into place,” he said. RITCHIE A. HORARIO source
October 29, 2014 8:40 pm
MERALCO PowerGen Corp. (MGen) is raising P40 billion to finance the expansion of its 460-megawatt San Buenaventura coal power plant in Mauban, Quezon.
“We are raising about P40 billion from the debt market,” MGen SVP for commercial development Angelito U. Lantin told reporters.
Lantin said Mgen, the power generation arm of Meralco, is now in the final stage of the engineering, procurement and construction (EPC) talks with the preferred contractor for the plant’s expansion.
“We are finalizing our EPC with our preferred contractor. We are also in the process of selecting arrangers for the project financing,” he added.
He expressed confidence that Mgen’s power supply agreement with Meralco will be approved by the Energy Regulatory Commission (ERC).
“We hope that within six months, it will be approved (by ERC),” he added.
Pending the ERC approval, Lantin said they will proceed with the issuance of notices possibly by next year.
“Everything is geared up for the completion of these activities. We hope to issue a notice to proceed very early next year,” he said.
The Meralco subsidiary plans to start construction in the fourth quarter.
For his part, Meralco President and Chief Executive Officer Oscar S. Reyes said their goal is to finish the project before the summer of 2018.
“We need to have this project before the summer of 2018 so that we have some degree of relief from the risk of red alert as demand continues to increase,” he added.
Reyes said once completed, the project will boost the Luzon grid’s capacity.
“We are fully aware of the prevailing power supply and demand situation where I think the Luzon grid faces fairly thin reserves until new power plant capacities come into place,” he said. RITCHIE A. HORARIO source
Aboitiz Equity Ventures reports P14.3-B income
Manila Times
October 29, 2014 8:39 pm
Aboitiz Equity Ventures (AEV) posted a consolidated net income of P14.3 billion in the first nine months, down 14 percent from last year’s P16.6 billion.
Erramon Aboitiz, AEV president and chief executive officer, said the drop in the company’s net income does not affect the fundamental value of their businesses.
“Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” he said.
At the same time, Aboitiz said they “remain supportive of the government’s public-private partnership program, cognizant of the critical state of the country’s infrastructure.”
Among its strategic business units (SBUs), power accounted for 72 percent of AEV’s earnings, followed by banking (17 percent), food (7 percent), and land development (4 percent).
On non-recurring items for the period, AEV incurred a non-recurring gain of P380 million from the revaluation of dollar-denominated liabilities and placements and a one-off gain of P634 million from the sale of a couple of investments. In addition, the power unit booked a non-recurring cost for the acquisition of Lima Enerzone Corp. (formerly Lima Utilities Corp.).
In addition, the Power SBU booked a non-recurring cost for the acquisition of Lima Enerzone Corp. (formerly Lima Utilities Corp.).
Adjusting for these one-offs, AEV’s core net income amounted to P13.9 billion, which is 16 percent lower than last year’s.
For the first nine months of 2014, Aboitiz Power Corp. (AboitizPower) registered an income contribution of P10.1 billion, 8 percent down from the previous year’s P11 billion. RITCHIE A. HORARIO source
October 29, 2014 8:39 pm
Aboitiz Equity Ventures (AEV) posted a consolidated net income of P14.3 billion in the first nine months, down 14 percent from last year’s P16.6 billion.
Erramon Aboitiz, AEV president and chief executive officer, said the drop in the company’s net income does not affect the fundamental value of their businesses.
“Our future growth plans remain intact as we continue to strengthen our businesses in keeping with the country’s economic growth,” he said.
At the same time, Aboitiz said they “remain supportive of the government’s public-private partnership program, cognizant of the critical state of the country’s infrastructure.”
Among its strategic business units (SBUs), power accounted for 72 percent of AEV’s earnings, followed by banking (17 percent), food (7 percent), and land development (4 percent).
On non-recurring items for the period, AEV incurred a non-recurring gain of P380 million from the revaluation of dollar-denominated liabilities and placements and a one-off gain of P634 million from the sale of a couple of investments. In addition, the power unit booked a non-recurring cost for the acquisition of Lima Enerzone Corp. (formerly Lima Utilities Corp.).
In addition, the Power SBU booked a non-recurring cost for the acquisition of Lima Enerzone Corp. (formerly Lima Utilities Corp.).
Adjusting for these one-offs, AEV’s core net income amounted to P13.9 billion, which is 16 percent lower than last year’s.
For the first nine months of 2014, Aboitiz Power Corp. (AboitizPower) registered an income contribution of P10.1 billion, 8 percent down from the previous year’s P11 billion. RITCHIE A. HORARIO source
Aboitiz nets P14 billion in 9 months
Doris C. Dumlao
Philippine Daily Inquirer
12:41 PM | Wednesday, October 29th, 2014
MANILA, Philippines — Aboitiz Equity Ventures Inc. grew its third quarter net profit by 3 percent year-on-year to P4.8 billion, aided by improved earnings from the banking business.For the first nine months of the year, AEV’s consolidated net income declined by 14 percent year-on-year to P14.3 billion due to the decline in contribution from the flagship power business as well as sluggish banking earnings for the first semester.
For the three-month period in review, AEV registered a non-recurring loss of P406 million, mainly due to the revaluation of the power unit’s consolidated dollar-denominated liabilities and placements. Adjusting for these one-offs, AEV closed the quarter with a core net income of P5.2 billion, higher by 9 percent year-on-year.
The year-on-year decline in the nine-month earnings was mostly due to lower earnings from flagship Aboitiz Power Corp., which contributed P10.1 billion or down by 8 percent from the level in the same period last year.
When adjusted for non-recurring items, the power unit recorded a 15 percent year-on-year decline in its earnings share to P10.3 billion.
Aboitiz Power’s generation group registered an 11 percent year-on-year decline in its income contribution to P8.3 billion. This was attributed to the full-year impact of the implementation of the Geothermal Resource Supply Contract of the Tiwi-Makban plants, limited operations of Magat plant due to low water levels, and the expiration of the Pagbilao plant’s income tax holiday starting January 2014.
For the nine-month period, power accounted for 72 percent of total business, followed by the banking, food and real estate units with income contributions of 17 percent, 7 percent, and 4 percent, respectively.
On non-recurring items for the period, AEV incurred a non-recurring gain of P380 million from the revaluation of dollar-denominated liabilities and placements and a one-off gain of P634 million from the sale of a couple of investments. In addition, the power unit booked a non-recurring cost for the acquisition of Lima Enerzone Corp. (formerly Lima Utilities Corp.).
Adjusting for these one-off’s, AEV’s nine-month core or recurring net income amounted to P13.9 billion, 16 percent lower than last year.
Meanwhile, other units contribution in the first nine months year-on-year were as follows: banking unit Union Bank’s income contribution declined by 28 percent year-on-year to P2.4 billion due to sluggish trading gains in the first six months; food unit, Pilmico Foods Corp. recorded a modest 1 percent year-on-year increase in income contribution to P942.2 million due to the weak performance of the feeds division, in turn as a result of the decline in margins and expiration of the income tax holiday of Iligan Feedmill; property unit Aboitiz Land Inc. grew income contribution by 247 percent to P565.4 million as revenues breached the P2 billion mark for the first time, almost triple from the same period last year. Industrial revenues were up by 473 percent year-on-year mainly from the contribution of Lima Land Inc. in Batangas. source
DOE pins hopes on wind energy
By Iris C. Gonzales (The Philippine Star) | Updated October 29, 2014 - 12:00am
MANILA, Philippines - The Department of Energy is counting on some 250 megawatts of wind power to be available starting this year until early 2015, a development that could significantly ease the country’s critical power supply situation.
“Around 250 MW (of wind capacity will come in) until early next year,” Energy Secretary Carlos Jericho Petilla said following a visit to Ilocos Norte, known as the country’s wind farm haven.
The Energy chief visited three wind projects in the province, namely the 33-MW Bangui Windmills operated by NorthWind power Development Corp., the Energy Development Corp.’s 150 MW Burgos wind farm and the 81 MW Pagudpud project of the North Luzon Renewable Energy Corp.
The three projects are racing to be the first to be completed under the feed-in-tariff regime, a set of incentives given to renewable energy players.
“This is a race so I cannot disclose,” Petilla said when asked which of the three would be completed first based on the timetables submitted to the Department of Energy.
EDC officials said the company hopes to put up the first wind project that would avail of the feed-in-tariff. The DOE has approved the tariff for 200 MW of wind projects on a first to commission, first served basis.
Once operational, the Burgos wind project is envisioned to be the biggest wind farm in the Philippines.
On the other hand, Ayala Corp.’s North Luzon is in the advanced stage of construction of its 81 MW Caparispisan phase 1 wind project in Pagudpud, Ilocos Norte.
According to documents submitted to the DOE, the construction of the first phase is now almost 80 percent complete, while the construction of the substation and transmission line is ongoing.
The DOE expects the 81 MW wind project to come online by March next year and help augment supply in the Luzon grid.
Another Ayala-led firm NorthWind Power, meanwhile, is pursuing the third phase expansion of the Bangui Bay wind farm in Ilocos Norte by adding 18 megawatts from the existing 33 MW, documents from the department also showed. source
MANILA, Philippines - The Department of Energy is counting on some 250 megawatts of wind power to be available starting this year until early 2015, a development that could significantly ease the country’s critical power supply situation.
“Around 250 MW (of wind capacity will come in) until early next year,” Energy Secretary Carlos Jericho Petilla said following a visit to Ilocos Norte, known as the country’s wind farm haven.
The Energy chief visited three wind projects in the province, namely the 33-MW Bangui Windmills operated by NorthWind power Development Corp., the Energy Development Corp.’s 150 MW Burgos wind farm and the 81 MW Pagudpud project of the North Luzon Renewable Energy Corp.
The three projects are racing to be the first to be completed under the feed-in-tariff regime, a set of incentives given to renewable energy players.
“This is a race so I cannot disclose,” Petilla said when asked which of the three would be completed first based on the timetables submitted to the Department of Energy.
EDC officials said the company hopes to put up the first wind project that would avail of the feed-in-tariff. The DOE has approved the tariff for 200 MW of wind projects on a first to commission, first served basis.
Once operational, the Burgos wind project is envisioned to be the biggest wind farm in the Philippines.
On the other hand, Ayala Corp.’s North Luzon is in the advanced stage of construction of its 81 MW Caparispisan phase 1 wind project in Pagudpud, Ilocos Norte.
According to documents submitted to the DOE, the construction of the first phase is now almost 80 percent complete, while the construction of the substation and transmission line is ongoing.
The DOE expects the 81 MW wind project to come online by March next year and help augment supply in the Luzon grid.
Another Ayala-led firm NorthWind Power, meanwhile, is pursuing the third phase expansion of the Bangui Bay wind farm in Ilocos Norte by adding 18 megawatts from the existing 33 MW, documents from the department also showed. source
Tuesday, October 28, 2014
Not enough time to buy more power -- Aquino
Business World Online
Posted on October 28, 2014 11:49:00 PM
TIME HAS RUN OUT for the Executive to contract additional generating capacity to address a power shortage looming in Luzon in summer next year, President Benigno S.C. Aquino III told top officials of electronics firms in the country yesterday, signaling he doubts the remaining options would suffice to plug the deficiency.
Mr. Aquino noted it takes about six months to lease and prepare generating units, and that Congress has yet to approve the joint resolution that would grant him additional powers to do so with the power shortage less than five months away.
“One of the things that we asked from Congress was the ability to contract two or three generating plants we could rent,” Mr. Aquino said during the open forum of the general membership meeting of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) at The Peninsula Manila hotel in Makati City.
“Unfortunately, there is a need of six months to install these facilities to include all of the civil works attendant to it -- fuel tanks, the ports that will service, etc. Congress has not given us that power as of yet and, of course, the emergency period or the critical period is from March, April, May, June and July next year,” he noted.
“So, that doesn’t seem to be an option at this point in time.”
Hence, Mr. Aquino said, the government will now focus on its other options which include the Interruptible Load Program (ILP), energy conservation measures and running old, reconditioned but workable plants, although he was unsure whether they would be enough to plug the power shortage.
He added that the government has also sought to reduce consumption by distributing 8.6 million more efficient bulbs.
“Congress and some members of the private sector are very, very inclined to just utilize the so-called Interruptible Load Program,” Mr. Aquino said.
“My caution was these backup generators are precisely that -- backup generators -- not base-load plants, and there is no assurance,” he added.
“I’m just trying to give you the picture as I see it so as not to raise false hopes. The reason we wanted the plants, the base-load plants, was precisely because they have demonstrated capability to produce the attendant power. Unfortunately, the cost is also high, but it is better to have and not need than to need and not have,” he continued.
“Unfortunately, others are taking a more optimistic look that the ILP will suffice to carry us through.”
Mr. Aquino said he hoped Luzon “will have all the necessary power” with “all of these steps that are being undertaken... and hopefully we will have a mild or non-existent El Niño situation next year” that will otherwise leave no water to run hydroelectric plants.
CARROT AND STICK
The Department of Energy (DoE) earlier projected a 900-MW deficiency in a worst-case scenario that could strike Luzon in the second week of April next year, but later revised the power outlook to show the island -- which is estimated to contribute 70% to gross domestic product -- would need at least 678 MW -- covering both shortage and minimum reserve.
Mr. Aquino last month formally asked Congress for additional options in the face of the looming problem, invoking the crisis provision of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001. That, in turn, set legislative wheels in motion to approve the envisioned joint resolution.
Proponents in Congress had earlier committed Oct. 29 for approval of the resolution that would give the Executive from March to June next year an arsenal of options ranging from an intensified energy conservation program to temporary acquisition of additional megawatts to plug the gap, but later moved the deadline to Dec. 1 instead.
This, following statements by DoE officials that the Executive may rely primarily on the ILP and the power crisis may not need as much state intervention as earlier believed.
Malacañang has since insisted it still wants to be able to acquire additional megawatts to bridge an energy shortage expected to strike Luzon in summer next year, fearing capacities among private firms with generator sets may not be enough to cover the gap.
At the same time, Congress is looking at a “carrot-and-stick” scheme to encourage more companies to join the ILP.
House of Representatives Energy committee chairman Rep. Reynaldo V. Umali of Oriental Mindoro (2nd district) said in a phone interview yesterday that provisions of the draft joint resolution include value added tax relief for companies that take part in the ILP.
“We are giving companies until Dec. 1 to register with the ILP. The carrot that we will be offering is that they will be paid for the additional expenses that they will incur from running their own plants, and the stick is that companies may be asked to run their own capacities and not get paid,” he said.
CONFIDENT
Mr. Umali also said Congress is “very confident” the remaining options -- ILP, energy conservation and efficiency measures, and running plants up for rehabilitation -- will be enough to bridge the energy gap next year.
Sought for comment yesterday, Senate Energy committee chairman Sen. Sergio R. Osmeña III -- who had said earlier that ILP alone could plug the looming deficit -- said in a text message: “If they’re [Executive] using their heads, they should pick up more than 500 MW thru ILP and RESA [Renewable Energy Supply Agreement] and tweak another 800 MW from existing plants.”
Business leaders also remained confident the ILP would be able to address the potential energy crisis next year.
“There is enough time to rev up more participation for the ILP,” Makati Business Club Executive Director Peter Angelo V. Perfecto said in a text message.
“Other companies are hesitant simply because they do not understand the terms of the engagement,” he added.
“Moreover, government must lead in an aggressive, no-nonsense energy conservation program to further ease demand on the grid during peak hours especially in times of red alert (when demand outstrips supply, including reserves),” Mr. Perfecto stressed.
“Finally, government must also lead in the crafting of a multi-stakeholder, longer term and sustainable energy security plan so that we can stop this cycle of energy gaps every three to five years.”
European Chamber of Commerce of the Philippines Vice-President Henry J. Schumacher said via text: “We maintain that the private sector can become part of the solution to address the power crisis through ILP and energy savings/efficiencies.”
“We are pretty confident that 700 MW can be achieved through ILP. On energy savings and energy efficiency, we can achieve 400 MW if we stand together and invest in lighting (LED), new aircon systems with high-efficiency motors now.”
Management Association of the Philippines President Gregorio S. Navarro, in a separate text message, said “the government should aggressively pursue the ILP and demand-side power saving measures to address the power shortage. Businesses and the public should be incentivized to adopt/support these schemes.”
John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said separately: “If generation capacity will not be contracted by the government, Luzon grid consumers will have to follow efficiency and conservation measures, the ILP program must be maximized and peaking plant owners paid enough to operate plants profitably.” -- Imee Charlee C. Delavin source
Posted on October 28, 2014 11:49:00 PM
TIME HAS RUN OUT for the Executive to contract additional generating capacity to address a power shortage looming in Luzon in summer next year, President Benigno S.C. Aquino III told top officials of electronics firms in the country yesterday, signaling he doubts the remaining options would suffice to plug the deficiency.
Mr. Aquino noted it takes about six months to lease and prepare generating units, and that Congress has yet to approve the joint resolution that would grant him additional powers to do so with the power shortage less than five months away.
“One of the things that we asked from Congress was the ability to contract two or three generating plants we could rent,” Mr. Aquino said during the open forum of the general membership meeting of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) at The Peninsula Manila hotel in Makati City.
“Unfortunately, there is a need of six months to install these facilities to include all of the civil works attendant to it -- fuel tanks, the ports that will service, etc. Congress has not given us that power as of yet and, of course, the emergency period or the critical period is from March, April, May, June and July next year,” he noted.
“So, that doesn’t seem to be an option at this point in time.”
Hence, Mr. Aquino said, the government will now focus on its other options which include the Interruptible Load Program (ILP), energy conservation measures and running old, reconditioned but workable plants, although he was unsure whether they would be enough to plug the power shortage.
He added that the government has also sought to reduce consumption by distributing 8.6 million more efficient bulbs.
“Congress and some members of the private sector are very, very inclined to just utilize the so-called Interruptible Load Program,” Mr. Aquino said.
“My caution was these backup generators are precisely that -- backup generators -- not base-load plants, and there is no assurance,” he added.
“I’m just trying to give you the picture as I see it so as not to raise false hopes. The reason we wanted the plants, the base-load plants, was precisely because they have demonstrated capability to produce the attendant power. Unfortunately, the cost is also high, but it is better to have and not need than to need and not have,” he continued.
“Unfortunately, others are taking a more optimistic look that the ILP will suffice to carry us through.”
Mr. Aquino said he hoped Luzon “will have all the necessary power” with “all of these steps that are being undertaken... and hopefully we will have a mild or non-existent El Niño situation next year” that will otherwise leave no water to run hydroelectric plants.
CARROT AND STICK
The Department of Energy (DoE) earlier projected a 900-MW deficiency in a worst-case scenario that could strike Luzon in the second week of April next year, but later revised the power outlook to show the island -- which is estimated to contribute 70% to gross domestic product -- would need at least 678 MW -- covering both shortage and minimum reserve.
Mr. Aquino last month formally asked Congress for additional options in the face of the looming problem, invoking the crisis provision of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001. That, in turn, set legislative wheels in motion to approve the envisioned joint resolution.
Proponents in Congress had earlier committed Oct. 29 for approval of the resolution that would give the Executive from March to June next year an arsenal of options ranging from an intensified energy conservation program to temporary acquisition of additional megawatts to plug the gap, but later moved the deadline to Dec. 1 instead.
This, following statements by DoE officials that the Executive may rely primarily on the ILP and the power crisis may not need as much state intervention as earlier believed.
Malacañang has since insisted it still wants to be able to acquire additional megawatts to bridge an energy shortage expected to strike Luzon in summer next year, fearing capacities among private firms with generator sets may not be enough to cover the gap.
At the same time, Congress is looking at a “carrot-and-stick” scheme to encourage more companies to join the ILP.
House of Representatives Energy committee chairman Rep. Reynaldo V. Umali of Oriental Mindoro (2nd district) said in a phone interview yesterday that provisions of the draft joint resolution include value added tax relief for companies that take part in the ILP.
“We are giving companies until Dec. 1 to register with the ILP. The carrot that we will be offering is that they will be paid for the additional expenses that they will incur from running their own plants, and the stick is that companies may be asked to run their own capacities and not get paid,” he said.
CONFIDENT
Mr. Umali also said Congress is “very confident” the remaining options -- ILP, energy conservation and efficiency measures, and running plants up for rehabilitation -- will be enough to bridge the energy gap next year.
Sought for comment yesterday, Senate Energy committee chairman Sen. Sergio R. Osmeña III -- who had said earlier that ILP alone could plug the looming deficit -- said in a text message: “If they’re [Executive] using their heads, they should pick up more than 500 MW thru ILP and RESA [Renewable Energy Supply Agreement] and tweak another 800 MW from existing plants.”
Business leaders also remained confident the ILP would be able to address the potential energy crisis next year.
“There is enough time to rev up more participation for the ILP,” Makati Business Club Executive Director Peter Angelo V. Perfecto said in a text message.
“Other companies are hesitant simply because they do not understand the terms of the engagement,” he added.
“Moreover, government must lead in an aggressive, no-nonsense energy conservation program to further ease demand on the grid during peak hours especially in times of red alert (when demand outstrips supply, including reserves),” Mr. Perfecto stressed.
“Finally, government must also lead in the crafting of a multi-stakeholder, longer term and sustainable energy security plan so that we can stop this cycle of energy gaps every three to five years.”
European Chamber of Commerce of the Philippines Vice-President Henry J. Schumacher said via text: “We maintain that the private sector can become part of the solution to address the power crisis through ILP and energy savings/efficiencies.”
“We are pretty confident that 700 MW can be achieved through ILP. On energy savings and energy efficiency, we can achieve 400 MW if we stand together and invest in lighting (LED), new aircon systems with high-efficiency motors now.”
Management Association of the Philippines President Gregorio S. Navarro, in a separate text message, said “the government should aggressively pursue the ILP and demand-side power saving measures to address the power shortage. Businesses and the public should be incentivized to adopt/support these schemes.”
John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said separately: “If generation capacity will not be contracted by the government, Luzon grid consumers will have to follow efficiency and conservation measures, the ILP program must be maximized and peaking plant owners paid enough to operate plants profitably.” -- Imee Charlee C. Delavin source
Aquino admits no reliable back up for looming power crisis next year
Sunstar Network
Tuesday, October 28, 2014
PRESIDENT Benigno Aquino III admitted Tuesday that there could be no reliable solution in case power shortage hit Luzon grid next year.
Aquino told executives from the semiconductor and electronic industry that leasing generators to produce additional capacity during the summer months of 2015 was not an option anymore due to inaction yet of Congress to grant him the emergency powers.
He noted that there is no more time to install these generator sets because six months are needed to do this.
"So, Congress and some members of the private sector are very, very inclined to just utilize the so-called Interruptible Load Program. My caution was these backup generators are precisely that backup generators, not base load plants. And there is no assurance... I’m just trying to give you the picture as I see it so as not to raise false hopes," he said.
Aquino said the reason he wanted the base load plants than ILP was precisely because they have demonstrated capability to produce the attendant power.
"Unfortunately, the cost is also high; between 6 to 12 billion pesos of something that we hope we will not utilize. But it is better to have and not need than to need and not have," he said.
Congress has yet to act on the President's request for emergency powers to address the possible power shortage.
Aquino expressed hope that power supply problem next year would just be mild.
"So hopefully, all of these steps that are being undertaken and hopefully we will have a mild or non-existent El Niño situation next year, will not produce the emergency situation and that we will all have the necessary power," he said. (SDR/Sunnex) source
Tuesday, October 28, 2014
PRESIDENT Benigno Aquino III admitted Tuesday that there could be no reliable solution in case power shortage hit Luzon grid next year.
Aquino told executives from the semiconductor and electronic industry that leasing generators to produce additional capacity during the summer months of 2015 was not an option anymore due to inaction yet of Congress to grant him the emergency powers.
He noted that there is no more time to install these generator sets because six months are needed to do this.
"So, Congress and some members of the private sector are very, very inclined to just utilize the so-called Interruptible Load Program. My caution was these backup generators are precisely that backup generators, not base load plants. And there is no assurance... I’m just trying to give you the picture as I see it so as not to raise false hopes," he said.
Aquino said the reason he wanted the base load plants than ILP was precisely because they have demonstrated capability to produce the attendant power.
"Unfortunately, the cost is also high; between 6 to 12 billion pesos of something that we hope we will not utilize. But it is better to have and not need than to need and not have," he said.
Congress has yet to act on the President's request for emergency powers to address the possible power shortage.
Aquino expressed hope that power supply problem next year would just be mild.
"So hopefully, all of these steps that are being undertaken and hopefully we will have a mild or non-existent El Niño situation next year, will not produce the emergency situation and that we will all have the necessary power," he said. (SDR/Sunnex) source
Aquino admits Congress delay made contracting generators impossible
Inquirer.net
Kristine Angeli Sabillo
1:51PM Tuesday, October 28th, 2014
MANILA, Philippines — Despite pushing for additional authority from Congress, President Benigno Aquino III eventually admitted on Tuesday that contracting generating sets for the looming energy shortage is no longer possible.
“That doesn’t seem to be an option at this point in time,” Aquino said during the general membership meeting of the Semiconductor and Electronics Industries in the Philippines (Seipi) held at the Peninsula Manila.
He explained that the generating sets require six months of installment and even if the joint resolution is approved by Congress, the facilities cannot be set-up before the summer of 2015. source
Kristine Angeli Sabillo
1:51PM Tuesday, October 28th, 2014
MANILA, Philippines — Despite pushing for additional authority from Congress, President Benigno Aquino III eventually admitted on Tuesday that contracting generating sets for the looming energy shortage is no longer possible.
“That doesn’t seem to be an option at this point in time,” Aquino said during the general membership meeting of the Semiconductor and Electronics Industries in the Philippines (Seipi) held at the Peninsula Manila.
He explained that the generating sets require six months of installment and even if the joint resolution is approved by Congress, the facilities cannot be set-up before the summer of 2015. source
EDITORIAL - Simplified rules
(The Philippine Star) | Updated October 28, 2014 - 12:00am
With more than 20 major companies committing to use their own generators next summer, lawmakers no longer see a need to give emergency or special powers to President Aquino. These days the government is projecting blackouts lasting no more than an hour a day next summer. And the situation could improve if more companies commit to use generators for their operations.
In making the proposal, the government had hoped, among other things, that the President would be empowered to approve contracts for additional energy capacity without public bidding. This was envisioned to speed up response in case the warning of experts about serious power outages in the summer of 2015 materialized.
Thanks to cooperation from the private sector, it looks like there will be no energy crisis next summer. But the case should prompt the government to review processes that slow down emergency response, delivery of public services and implementation of projects and programs.
The review can start with bidding procedures. Numerous government projects, from big-ticket to minor ones, have been stalled at the bidding stage. Laws on government procurement can be fine-tuned so that simplified procedures can be followed throughout the government, from national agencies to the smallest local units. Where possible, the rules must be uniformly applied to prevent confusion and make it easier to do business.
As everyone knows, red tape is deliberately designed into systems and procedures to encourage the payment of “facilitation fees” or grease money. In certain local government units, red tape also gives undue advantage to the dominant political clan, whose members and cronies enjoy express service in all their dealings with the LGU while keeping out potential competition.
Those layers of bureaucratic requirements, many of them redundant and calling for unnecessary fees, have retarded national competitiveness and driven away investors to neighboring countries where simplified rules have made it much easier to do business. Complicated rules, on top of weak regulation and uncertainty in the business environment, have also discouraged needed investments in the energy sector – the reason why blackouts loom next summer. The projected energy shortage should pave the way for necessary reforms. source
With more than 20 major companies committing to use their own generators next summer, lawmakers no longer see a need to give emergency or special powers to President Aquino. These days the government is projecting blackouts lasting no more than an hour a day next summer. And the situation could improve if more companies commit to use generators for their operations.
In making the proposal, the government had hoped, among other things, that the President would be empowered to approve contracts for additional energy capacity without public bidding. This was envisioned to speed up response in case the warning of experts about serious power outages in the summer of 2015 materialized.
Thanks to cooperation from the private sector, it looks like there will be no energy crisis next summer. But the case should prompt the government to review processes that slow down emergency response, delivery of public services and implementation of projects and programs.
The review can start with bidding procedures. Numerous government projects, from big-ticket to minor ones, have been stalled at the bidding stage. Laws on government procurement can be fine-tuned so that simplified procedures can be followed throughout the government, from national agencies to the smallest local units. Where possible, the rules must be uniformly applied to prevent confusion and make it easier to do business.
As everyone knows, red tape is deliberately designed into systems and procedures to encourage the payment of “facilitation fees” or grease money. In certain local government units, red tape also gives undue advantage to the dominant political clan, whose members and cronies enjoy express service in all their dealings with the LGU while keeping out potential competition.
Those layers of bureaucratic requirements, many of them redundant and calling for unnecessary fees, have retarded national competitiveness and driven away investors to neighboring countries where simplified rules have made it much easier to do business. Complicated rules, on top of weak regulation and uncertainty in the business environment, have also discouraged needed investments in the energy sector – the reason why blackouts loom next summer. The projected energy shortage should pave the way for necessary reforms. source
Will DOE’s DASAP solve power crisis?
BIZLINKS By Rey Gamboa (The Philippine Star) | Updated October 28, 2014 - 12:00am
The answer is negative, according to Matuwid na Singil sa Kuryente (MSK). MSK is a consumer alliance group formed in late 2011 by concerned Meralco consumers who claim to have a “deep knowledge of the electric power industry privatization and deregulation and the inner workings of the industry.”
One of its avowed missions is to enlighten the public and policy makers on the specific rules and practices that have been causing the “abusive power costs.” One of its claimed accomplishments is the opposition and review of a proposed P11-billion charge by National Grid Corporation.
I recently received the consumer group’s position on the proposed Demand Aggregation and Supply Auctioning Policy (DASAP) of the Department of Energy, one of the suggested measures that will help avert any serious power shortages next year during the summer months.
The DOE had posted the draft guidelines in its website requesting for comments by October 10, 2014, which was the day when a news article was published about it, and when MSK learned about DASAP. Nevertheless, MSK submitted its position paper, parts of which follow:
“After reading the draft, you get the feeling that the authors are sheepishly tiptoeing into tinder territory, apparently being careful not to step on some very big toes. The initial version is an NGE (not good enough) and on its way to keeping the WD [watered down] tradition of power and energy laws including the Epira Law.
“Our comments, clarifications, and suggestions on DASAP.
“1. Premises of the Guidelines (Pages 1 to 3)
“One main reason power cost in the country is high is because low power cost is not a declared government policy.
“The premises of the DASAP Guideline are not an exception. With all the big words contained in the premises up to Section 1 ‘eneral policies and principles,’ it failed to categorically state that the objective of the guideline is to ‘aggregate demand and subject them to competitive bidding to reduce power costs.’
“2. Coverage. Who and what will be subjected to bidding (or auctioning)?
“Will Meralco and the private utilities be really covered by this guideline even if Section 2 says the DUs are mandatory participants? Private DUs serve about 72 percent of the energy needs of the country, with only 28 percent served by the 119 electric cooperatives.
“a. Only the “un-contracted” energy requirements of the DUs will be included in an ‘auction.’ So, what if Meralco says they already contracted the next 3,000 MW of its energy requirements to Meralco PowerGen through its self-negotiated contracts? So DASAP will not mean anything to the Meralco consumers? Davao Light and Visayan Electric Co. would have all its future energy requirements contracted to Therma South companies.
“To provide real teeth and purpose to this guideline, why not include a standstill provision that says all new power supply requirements for delivery starting in 2017 will be subjected to competitive bidding under DASAP. And all un-contracted energy requirements for delivery in 2015 onwards will also be subjected to this bidding.
“b. It is not clear in Section 3 which agency will aggregate the power demand from the private DUs. It doesn’t say it is under the Department of Energy’s responsibilities. The need to sign commitment to buy agreements with the DUs is not provided. Is this an oversight?
“The National Electrification Administration (NEA) on the other hand is clearly mandated to aggregate and facilitate the ‘auctioning’ of the demand of electric cooperatives under Section 3 (c).
“c. ‘Aggregation must be amongst the contiguously located DUs.’
“In a grid-connected system where most DUs are connected by transmission lines to the national grid, there is no reason why DUs of Northern Luzon cannot be aggregated with the demand of those DUs in Southern Luzon even if they are not contiguously located because they are all part of the delivery system of NGCP’s system. The winning generator can deliver power to all of them in Luzon through the Luzon transmission grid. Why cannot an Isabela coop aggregate with a Meralco big tender, and benefit from the economies of scale?
“Geographical contiguousness unnecessarily limits the potential for aggregation.
“d. Short Term contracts to existing generating plans
“Section 4 (e) proposes to offer only one- to three-year contracts to existing generators. This discourages the new investments in the expansion and upgrading of existing power plants and effectively promotes only greenfield new projects by offering them up to 25 years. Existing plants that are made more efficient and increased in capacity would most likely offer lower rates at sure timetables because they don’t have to deal with the permitting, financing, construction, and start-up challenges of new greenfield projects. New plants tend to run into environmental resistance. Why not give at least 10 years for upgraded existing power plants?
“Let us hope the DOE Committee will address the above concerns with an open mind. Unless there are powerful influences behind the writing of yet another watered down rule and regulation that is always derailing well intended objectives to truly achieve what they are supposed to deliver to the electric consumers.”
It would be interesting to hear what DOE technocrats and bureaucrats will say to the above points raised by MSK. source
The answer is negative, according to Matuwid na Singil sa Kuryente (MSK). MSK is a consumer alliance group formed in late 2011 by concerned Meralco consumers who claim to have a “deep knowledge of the electric power industry privatization and deregulation and the inner workings of the industry.”
One of its avowed missions is to enlighten the public and policy makers on the specific rules and practices that have been causing the “abusive power costs.” One of its claimed accomplishments is the opposition and review of a proposed P11-billion charge by National Grid Corporation.
I recently received the consumer group’s position on the proposed Demand Aggregation and Supply Auctioning Policy (DASAP) of the Department of Energy, one of the suggested measures that will help avert any serious power shortages next year during the summer months.
The DOE had posted the draft guidelines in its website requesting for comments by October 10, 2014, which was the day when a news article was published about it, and when MSK learned about DASAP. Nevertheless, MSK submitted its position paper, parts of which follow:
“After reading the draft, you get the feeling that the authors are sheepishly tiptoeing into tinder territory, apparently being careful not to step on some very big toes. The initial version is an NGE (not good enough) and on its way to keeping the WD [watered down] tradition of power and energy laws including the Epira Law.
“Our comments, clarifications, and suggestions on DASAP.
“1. Premises of the Guidelines (Pages 1 to 3)
“One main reason power cost in the country is high is because low power cost is not a declared government policy.
“The premises of the DASAP Guideline are not an exception. With all the big words contained in the premises up to Section 1 ‘eneral policies and principles,’ it failed to categorically state that the objective of the guideline is to ‘aggregate demand and subject them to competitive bidding to reduce power costs.’
“2. Coverage. Who and what will be subjected to bidding (or auctioning)?
“Will Meralco and the private utilities be really covered by this guideline even if Section 2 says the DUs are mandatory participants? Private DUs serve about 72 percent of the energy needs of the country, with only 28 percent served by the 119 electric cooperatives.
“a. Only the “un-contracted” energy requirements of the DUs will be included in an ‘auction.’ So, what if Meralco says they already contracted the next 3,000 MW of its energy requirements to Meralco PowerGen through its self-negotiated contracts? So DASAP will not mean anything to the Meralco consumers? Davao Light and Visayan Electric Co. would have all its future energy requirements contracted to Therma South companies.
“To provide real teeth and purpose to this guideline, why not include a standstill provision that says all new power supply requirements for delivery starting in 2017 will be subjected to competitive bidding under DASAP. And all un-contracted energy requirements for delivery in 2015 onwards will also be subjected to this bidding.
“b. It is not clear in Section 3 which agency will aggregate the power demand from the private DUs. It doesn’t say it is under the Department of Energy’s responsibilities. The need to sign commitment to buy agreements with the DUs is not provided. Is this an oversight?
“The National Electrification Administration (NEA) on the other hand is clearly mandated to aggregate and facilitate the ‘auctioning’ of the demand of electric cooperatives under Section 3 (c).
“c. ‘Aggregation must be amongst the contiguously located DUs.’
“In a grid-connected system where most DUs are connected by transmission lines to the national grid, there is no reason why DUs of Northern Luzon cannot be aggregated with the demand of those DUs in Southern Luzon even if they are not contiguously located because they are all part of the delivery system of NGCP’s system. The winning generator can deliver power to all of them in Luzon through the Luzon transmission grid. Why cannot an Isabela coop aggregate with a Meralco big tender, and benefit from the economies of scale?
“Geographical contiguousness unnecessarily limits the potential for aggregation.
“d. Short Term contracts to existing generating plans
“Section 4 (e) proposes to offer only one- to three-year contracts to existing generators. This discourages the new investments in the expansion and upgrading of existing power plants and effectively promotes only greenfield new projects by offering them up to 25 years. Existing plants that are made more efficient and increased in capacity would most likely offer lower rates at sure timetables because they don’t have to deal with the permitting, financing, construction, and start-up challenges of new greenfield projects. New plants tend to run into environmental resistance. Why not give at least 10 years for upgraded existing power plants?
“Let us hope the DOE Committee will address the above concerns with an open mind. Unless there are powerful influences behind the writing of yet another watered down rule and regulation that is always derailing well intended objectives to truly achieve what they are supposed to deliver to the electric consumers.”
It would be interesting to hear what DOE technocrats and bureaucrats will say to the above points raised by MSK. source
Meralco projects P17.8-B core net income this year
By Iris C. Gonzales (The Philippine Star) | Updated October 28, 2014 - 12:00am
MANILA, Philippines - The Manila Electric Co. (Meralco), the country’s biggest power distributor, aims to end the year with a consolidated core net income of P17.8 billion, higher than the P17 billion posted last year, its chairman Manuel V. Pangilinan said yesterday.
“In terms of full year outlook, based on the first nine months result, we’re guiding full year profitability on a core basis at P17.8 billion in reference, say to the 2013 core of about P17 billion, so that’s about 4.6-percent growth on core income in 2014 from 2013,” Pangilinan said in a media briefing yesterday.
Meralco’s consolidated reported net income amounted to P14.3 billion, up five percent compared with 2013, Meralco chief finance officer Betty Siy-Yap said during yesterday’s media briefing.
Consolidated core net income, which excludes one-time, exceptional charges, also amounted to P14.3 billion, Siy said.
Consolidated volume of energy distributed for the nine month period was 26,253 gigawatt-hour, two percent higher than the P25,616 GWh in 2013, Meralco reported.
“Total volume of electricity distributed grew by more than two percent, weighed down by the adverse effect of successive weather disturbances in the third quarter of 2014,” Meralco reported.
The power distributor posted that its consolidated revenues, of which electricity sales account for 98 percent, decreased by over two percent to P202.9 billion due to the combined effects of net lower pass-through generation charge and to the reduction in supply revenues form contestable customers supplied by other retail electricity suppliers as well as the adjustment of the prices at the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.
The Energy Regulatory Commission (ERC), the power regulator, ordered the recalculation of prices at the spot market for the December 2013 supply month bill following its findings of market collusion among players.
At the time, Meralco’s generation charge rose to P9.10 per kilowatt-hour and to P10.23 per kwh in January 2014.
Aside from these factors, Meralco also noted lower average distribution tariff and unrealized sales due to three weather disturbances, which affected the franchise area in the third quarter. source
MANILA, Philippines - The Manila Electric Co. (Meralco), the country’s biggest power distributor, aims to end the year with a consolidated core net income of P17.8 billion, higher than the P17 billion posted last year, its chairman Manuel V. Pangilinan said yesterday.
“In terms of full year outlook, based on the first nine months result, we’re guiding full year profitability on a core basis at P17.8 billion in reference, say to the 2013 core of about P17 billion, so that’s about 4.6-percent growth on core income in 2014 from 2013,” Pangilinan said in a media briefing yesterday.
Meralco’s consolidated reported net income amounted to P14.3 billion, up five percent compared with 2013, Meralco chief finance officer Betty Siy-Yap said during yesterday’s media briefing.
Consolidated core net income, which excludes one-time, exceptional charges, also amounted to P14.3 billion, Siy said.
Consolidated volume of energy distributed for the nine month period was 26,253 gigawatt-hour, two percent higher than the P25,616 GWh in 2013, Meralco reported.
“Total volume of electricity distributed grew by more than two percent, weighed down by the adverse effect of successive weather disturbances in the third quarter of 2014,” Meralco reported.
The power distributor posted that its consolidated revenues, of which electricity sales account for 98 percent, decreased by over two percent to P202.9 billion due to the combined effects of net lower pass-through generation charge and to the reduction in supply revenues form contestable customers supplied by other retail electricity suppliers as well as the adjustment of the prices at the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.
The Energy Regulatory Commission (ERC), the power regulator, ordered the recalculation of prices at the spot market for the December 2013 supply month bill following its findings of market collusion among players.
At the time, Meralco’s generation charge rose to P9.10 per kilowatt-hour and to P10.23 per kwh in January 2014.
Aside from these factors, Meralco also noted lower average distribution tariff and unrealized sales due to three weather disturbances, which affected the franchise area in the third quarter. source
Alsons gets $73.5-M loan for power proj
By Iris C. Gonzales (The Philippine Star) | Updated October 28, 2014 - 12:00am
MANILA, Philippines - ALSONS Consolidated Resources Inc. (ACR), the publicly listed company of the Alcantara Group, has signed a $73.5-million long-term loan with local and foreign banks to fund its power development projects in Mindanao.
In a disclosure to the Philippine Stock Exchange (PSE), Alsons said it would use a portion of the loan to refinance existing debts.
ACR chairman Tomas Alcantara cited UBS AG, which arranged the loan with a consortium of local and foreign banks, for its successful completion of the facility.
As a power generation company, ACR is developing coal-fired power plants in Mindanao to help provide a stable source of baseload power for Mindanao and to ensure long-term power security for the island.
These power facilities are the 105-MW San Ramon Power, Inc. (SRPI) plant in Zamboanga City and the 210-MW Sarangani Energy Corporation (SEC) plant in a sprawling property in Maasim, Sarangani.
The SEC plant is one of only two power plants that would be operating by 2015 to help provide a sustainable and lasting solution to the four-year-old Mindanao power shortage, ACR said in the disclosure.
The first 105 MW section of the SEC plant is already under construction and is 76 percent complete. It is targeted for commissioning in May of 2015, with commencement of operations by October 2015.
The company is aiming to reach the full capacity of 210 MW by the fourth quarter of 2016 or within the first half of 2017.
Apart from the coal fired power plants which are under development, ACR currently operates three diesel power plants in Mindanao.
To date, ACR’s portfolio of diesel-fired power generation facilities includes the Southern Philippines Power Corporation’s (SPPC) 55 MW plant in Alabel, Sarangani, the 100 MW Western Mindanao Power Corporation (WMPC) plant in Zamboanga City, and the 103 MW Mapalad Power Corporation (MPC) plant in Iligan City.
ACR is also embarking on renewable energy projects such as run of river hydroelectric plants as well as solar power.
The first of these projects is a 16 MW hydroelectric facility at the Siguil River in Maasim, Sarangani, which is currently in the advanced stages of development and is expected to commence construction in 2015. source
MANILA, Philippines - ALSONS Consolidated Resources Inc. (ACR), the publicly listed company of the Alcantara Group, has signed a $73.5-million long-term loan with local and foreign banks to fund its power development projects in Mindanao.
In a disclosure to the Philippine Stock Exchange (PSE), Alsons said it would use a portion of the loan to refinance existing debts.
ACR chairman Tomas Alcantara cited UBS AG, which arranged the loan with a consortium of local and foreign banks, for its successful completion of the facility.
As a power generation company, ACR is developing coal-fired power plants in Mindanao to help provide a stable source of baseload power for Mindanao and to ensure long-term power security for the island.
These power facilities are the 105-MW San Ramon Power, Inc. (SRPI) plant in Zamboanga City and the 210-MW Sarangani Energy Corporation (SEC) plant in a sprawling property in Maasim, Sarangani.
The SEC plant is one of only two power plants that would be operating by 2015 to help provide a sustainable and lasting solution to the four-year-old Mindanao power shortage, ACR said in the disclosure.
The first 105 MW section of the SEC plant is already under construction and is 76 percent complete. It is targeted for commissioning in May of 2015, with commencement of operations by October 2015.
The company is aiming to reach the full capacity of 210 MW by the fourth quarter of 2016 or within the first half of 2017.
Apart from the coal fired power plants which are under development, ACR currently operates three diesel power plants in Mindanao.
To date, ACR’s portfolio of diesel-fired power generation facilities includes the Southern Philippines Power Corporation’s (SPPC) 55 MW plant in Alabel, Sarangani, the 100 MW Western Mindanao Power Corporation (WMPC) plant in Zamboanga City, and the 103 MW Mapalad Power Corporation (MPC) plant in Iligan City.
ACR is also embarking on renewable energy projects such as run of river hydroelectric plants as well as solar power.
The first of these projects is a 16 MW hydroelectric facility at the Siguil River in Maasim, Sarangani, which is currently in the advanced stages of development and is expected to commence construction in 2015. source
Monday, October 27, 2014
Meralco core profit guidance for 2014 set at P17.8 billion
Business World Online
Posted on October 27, 2014 11:29:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
MANILA Electric Co. (Meralco) expects 2014 core profit to come in at nearly P18 billion, reflecting a small increase in sales volume which will help the company exceed the year-earlier core profit of P17.02 billion.
“Based on the nine-month results, we are guiding full-year outlook on a core basis at P17.8 billion,” Meralco Chairman Manuel V. Pangilinan said in a briefing in Pasig City yesterday.
“Our core distribution business, which has so far provided 96% of our bottom line, will continue to focus on service reliability and accelerated energization of our growing number of customers,” he said.
Energy sales volume, Mr. Pangilinan said, is expected to rise by 2.5%-2.8% for the year.
The outlook, which the company deems conservative, took into account the expected lower revenue from distribution charges as approved by the Energy Regulatory Commission (ERC) following an annual revenue requirement review.
“We are pitching the guidance at that level because we are fully aware that a new regulatory tariff became effective in July this year, which was lower compared to the previous year,” Meralco President and Chief Executive Officer Oscar S. Reyes explained.
The ERC earlier ordered Meralco to implement a P1.5562-per-kilowatt-hour (/kWh) distribution rate from July this year to June 2015 from P1.6474/kWh in effect during the previous regulatory year.
“That’s about a P0.10/kWh drop in distribution tariff year on year so that will bring the overall tariff lower for the full year,” Mr. Reyes added.
For the nine months to September, Meralco’s net profit rose 4.9% to P14.308 billion, while core profit -- which strips out one-time gains and losses -- grew 5.4% to P14.286 billion.
Revenue fell 2.5% to P202.890 billion as electricity sales -- which accounted for bulk of the total -- slid 3.1% to P199.042 billion.
Non-electricity revenue, meanwhile, grew 37.1% to P3.848 billion.
The 4% drop in costs and expenses to P181.149 billion helped offset the lower recorded revenues.
LOSSES FROM TYPHOONS
Meralco’s energy sales edged up by 2.5% year on year in the nine months to 26,253 gigawatt-hours (GWh).
“We recorded fairly sluggish energy sales in the first half but this has gone up by 2.5% in the nine months compared to the same period last year with the addition of 637 GWh,” Mr. Reyes said.
The official added that this could have been higher if not for typhoons Glenda and Mario which affected its franchise area in July and September, respectively.
“As a result of typhoons, and Glenda and Mario, we had unrealized sales of 263 GWh,” Mr. Reyes said.
“Without those, our growth would have been 3.5% rather than 2.5%.”
Meralco also sustained over P400 million worth of damage due to these typhoons.
Even with these results, Meralco’s Mr. Reyes said the company’s operating results were “very good and decent in terms of energy sales.”
CAPEX
Meralco yesterday also earmarked higher capital expenditure (capex) levels for next year to improve its distribution network.
“For 2015, I think were looking at capex of around P13.5 billion for Meralco,” Mr. Reyes said during the same briefing.
He noted that this is 17% more than the P11.5 billion actual spending seen for this year.
The same official added that capex will fund new electric capital projects and connections to new areas that have to be energized.
“New areas are opening up like through socialized and commercial housing programs so we have to accommodate new connections by building new substations and facilities,” Mr. Reyes said.
He added that the utility is also making its distribution facilities more resistant to damage from typhoons and other calamities.
“We are also hardening our entire distribution system to be able to withstand more severe typhoons or storms so that consumers are not inconvenienced or put at risk,” Mr. Reyes said.
Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna and Quezon.
Through Clark Electric Distribution Corp., the company also provides electricity to more than 1,000 industrial customers in Clark Freeport Zone in Pampanga
Shares of Meralco closed unchanged at P264 on Monday.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
Posted on October 27, 2014 11:29:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
MANILA Electric Co. (Meralco) expects 2014 core profit to come in at nearly P18 billion, reflecting a small increase in sales volume which will help the company exceed the year-earlier core profit of P17.02 billion.
“Based on the nine-month results, we are guiding full-year outlook on a core basis at P17.8 billion,” Meralco Chairman Manuel V. Pangilinan said in a briefing in Pasig City yesterday.
“Our core distribution business, which has so far provided 96% of our bottom line, will continue to focus on service reliability and accelerated energization of our growing number of customers,” he said.
Energy sales volume, Mr. Pangilinan said, is expected to rise by 2.5%-2.8% for the year.
The outlook, which the company deems conservative, took into account the expected lower revenue from distribution charges as approved by the Energy Regulatory Commission (ERC) following an annual revenue requirement review.
“We are pitching the guidance at that level because we are fully aware that a new regulatory tariff became effective in July this year, which was lower compared to the previous year,” Meralco President and Chief Executive Officer Oscar S. Reyes explained.
The ERC earlier ordered Meralco to implement a P1.5562-per-kilowatt-hour (/kWh) distribution rate from July this year to June 2015 from P1.6474/kWh in effect during the previous regulatory year.
“That’s about a P0.10/kWh drop in distribution tariff year on year so that will bring the overall tariff lower for the full year,” Mr. Reyes added.
For the nine months to September, Meralco’s net profit rose 4.9% to P14.308 billion, while core profit -- which strips out one-time gains and losses -- grew 5.4% to P14.286 billion.
Revenue fell 2.5% to P202.890 billion as electricity sales -- which accounted for bulk of the total -- slid 3.1% to P199.042 billion.
Non-electricity revenue, meanwhile, grew 37.1% to P3.848 billion.
The 4% drop in costs and expenses to P181.149 billion helped offset the lower recorded revenues.
LOSSES FROM TYPHOONS
Meralco’s energy sales edged up by 2.5% year on year in the nine months to 26,253 gigawatt-hours (GWh).
“We recorded fairly sluggish energy sales in the first half but this has gone up by 2.5% in the nine months compared to the same period last year with the addition of 637 GWh,” Mr. Reyes said.
The official added that this could have been higher if not for typhoons Glenda and Mario which affected its franchise area in July and September, respectively.
“As a result of typhoons, and Glenda and Mario, we had unrealized sales of 263 GWh,” Mr. Reyes said.
“Without those, our growth would have been 3.5% rather than 2.5%.”
Meralco also sustained over P400 million worth of damage due to these typhoons.
Even with these results, Meralco’s Mr. Reyes said the company’s operating results were “very good and decent in terms of energy sales.”
CAPEX
Meralco yesterday also earmarked higher capital expenditure (capex) levels for next year to improve its distribution network.
“For 2015, I think were looking at capex of around P13.5 billion for Meralco,” Mr. Reyes said during the same briefing.
He noted that this is 17% more than the P11.5 billion actual spending seen for this year.
The same official added that capex will fund new electric capital projects and connections to new areas that have to be energized.
“New areas are opening up like through socialized and commercial housing programs so we have to accommodate new connections by building new substations and facilities,” Mr. Reyes said.
He added that the utility is also making its distribution facilities more resistant to damage from typhoons and other calamities.
“We are also hardening our entire distribution system to be able to withstand more severe typhoons or storms so that consumers are not inconvenienced or put at risk,” Mr. Reyes said.
Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna and Quezon.
Through Clark Electric Distribution Corp., the company also provides electricity to more than 1,000 industrial customers in Clark Freeport Zone in Pampanga
Shares of Meralco closed unchanged at P264 on Monday.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
More power plants in Davao City
Sunstar Davao
By Fe San Juan Hidalgo
Citizen Fe
Monday, October 27, 2014
THIS headline in our paper last week caught my attention. This is one of my most extensively researched subject matter when I was writing my book on Sustainable Development of the Environment. This book won the Google Books award for the most Outstanding Book on Science and Environment for year 2000. Energy sources studies have been investigated and harnessed in all countries. Davao City is one of the latest to do this. With the impending shortage of electrical power in 2015, the City Council was tasked by the Mayor Duterte to schedule it for deliberation now.
Hydro electric power source is first in the agenda. It is the easiest to find and harness in a city like ours. We can start with small hydro electric plants. We need a considerable size of a body of water to start the project. I personally visited the large Binga and Ambuklao dams in Baguio City while researching for my book. My tour guide brought me to an underground tunnel almost equal to a ten-story building in its depth. Each story has murals of famous painters. I was wondering about the tunnel. My guide told me that it is needed to build the dam. You will understand this when I describe the smaller hydro electric power source.
The needs of Davao City can be met by building smaller or mini hydro electric power sources. I will describe these in a common man's language so my readers will understand it. The location must have a body of water. A dam is constructed here, about six meters high. This will not entail the submersion of large areas to dislocate many villages. Restrictions include these: no watersheds will be affected, minimal cutting of trees, and minimal displacement of dwellers living there.
Dams make possible the rise on the water level. The free flow of the descending will operate the turbines. The turbines are connected to motors which will transform the mechanical energy into the electrical energy. This in turn will bring the electricity passing through insulated wires to our homes or to factories where it is needed The electricity is measured in megawatts like 5 to 50 MWs in these small small hydroelectric power sources. The consumers pay for the electric bills they consume. Now you see how this electricity is produced. Your cooperation is needed in conserving this. Do not be wasteful. Turn off electricity when not needed.
Geothermal sources of energy are abundant in our country. The heat is coming from the heat of the earth's interior. They appear as geysers or hot springs. In our country we have many volcanoes which accounts for the earth's heated interior. Imagine, in my data of year 2000,the Philippines is second to the United States in their geothermal power capacities. This energy source is cheap, abundant, and clean. On record, the Mindanao Mount Apo has not been fully explored with the 60 MWs when its potential is 240 MWs. Also listed are Manat-Amacan, Malindang, Balaingasag, and Mainit. These sources need only ten to twenty hectares of land for installation, 3 to 5 years to construct and less capital investment is needed compared to dams.
Wind as a source of energy is already in existence in Ilocos. Solar power is being used now in some places in Mindanao for street lamps, in school buildings in evacuation areas and some homes provided by a German based company. I have been advocating its use. It is inexhaustible, clean, non-polluting and free for anyone to get it. The initial expense may be much but it will last. What are needed are solar panels to be installed in the homes or factories. The energy can be stored in batteries to be used at night.
For me, I will not include nuclear energy here. It is not recommendable. Many countries have stopped using it for its known hazards. When something goes wrong with it like leakage or breaking down with earthquakes, calamities happen. We saw Fukushima reactor in Japan when damaged by an earthquake followed by a tsunami. Until now there are dangers of toxic fallout in the Pacific Ocean and countries north of Japan. Imagine, there was a plan to revive our nuclear plant in Bataan. This did not happen with rallies of citizens opposing it. Now, the plant is a" white elephant" reminding as of many anomalies concerning its financing and worst discovering that it stands near an earthquake fault line.
Just remember Hiroshima and Nagasaki in Japan at the end of World War11. Countless people died. Some are alive now but carrying deformities and bald. After this descriptive account of all possible power plants in our city, we can decide what we want. This could be the end of our woes with our Meralco bills with all its added charges due to providers of its power. All the power plants we describe here are the power providers without any other agencies. For comments text cp number 09202112534. source
By Fe San Juan Hidalgo
Citizen Fe
Monday, October 27, 2014
THIS headline in our paper last week caught my attention. This is one of my most extensively researched subject matter when I was writing my book on Sustainable Development of the Environment. This book won the Google Books award for the most Outstanding Book on Science and Environment for year 2000. Energy sources studies have been investigated and harnessed in all countries. Davao City is one of the latest to do this. With the impending shortage of electrical power in 2015, the City Council was tasked by the Mayor Duterte to schedule it for deliberation now.
Hydro electric power source is first in the agenda. It is the easiest to find and harness in a city like ours. We can start with small hydro electric plants. We need a considerable size of a body of water to start the project. I personally visited the large Binga and Ambuklao dams in Baguio City while researching for my book. My tour guide brought me to an underground tunnel almost equal to a ten-story building in its depth. Each story has murals of famous painters. I was wondering about the tunnel. My guide told me that it is needed to build the dam. You will understand this when I describe the smaller hydro electric power source.
The needs of Davao City can be met by building smaller or mini hydro electric power sources. I will describe these in a common man's language so my readers will understand it. The location must have a body of water. A dam is constructed here, about six meters high. This will not entail the submersion of large areas to dislocate many villages. Restrictions include these: no watersheds will be affected, minimal cutting of trees, and minimal displacement of dwellers living there.
Dams make possible the rise on the water level. The free flow of the descending will operate the turbines. The turbines are connected to motors which will transform the mechanical energy into the electrical energy. This in turn will bring the electricity passing through insulated wires to our homes or to factories where it is needed The electricity is measured in megawatts like 5 to 50 MWs in these small small hydroelectric power sources. The consumers pay for the electric bills they consume. Now you see how this electricity is produced. Your cooperation is needed in conserving this. Do not be wasteful. Turn off electricity when not needed.
Geothermal sources of energy are abundant in our country. The heat is coming from the heat of the earth's interior. They appear as geysers or hot springs. In our country we have many volcanoes which accounts for the earth's heated interior. Imagine, in my data of year 2000,the Philippines is second to the United States in their geothermal power capacities. This energy source is cheap, abundant, and clean. On record, the Mindanao Mount Apo has not been fully explored with the 60 MWs when its potential is 240 MWs. Also listed are Manat-Amacan, Malindang, Balaingasag, and Mainit. These sources need only ten to twenty hectares of land for installation, 3 to 5 years to construct and less capital investment is needed compared to dams.
Wind as a source of energy is already in existence in Ilocos. Solar power is being used now in some places in Mindanao for street lamps, in school buildings in evacuation areas and some homes provided by a German based company. I have been advocating its use. It is inexhaustible, clean, non-polluting and free for anyone to get it. The initial expense may be much but it will last. What are needed are solar panels to be installed in the homes or factories. The energy can be stored in batteries to be used at night.
For me, I will not include nuclear energy here. It is not recommendable. Many countries have stopped using it for its known hazards. When something goes wrong with it like leakage or breaking down with earthquakes, calamities happen. We saw Fukushima reactor in Japan when damaged by an earthquake followed by a tsunami. Until now there are dangers of toxic fallout in the Pacific Ocean and countries north of Japan. Imagine, there was a plan to revive our nuclear plant in Bataan. This did not happen with rallies of citizens opposing it. Now, the plant is a" white elephant" reminding as of many anomalies concerning its financing and worst discovering that it stands near an earthquake fault line.
Just remember Hiroshima and Nagasaki in Japan at the end of World War11. Countless people died. Some are alive now but carrying deformities and bald. After this descriptive account of all possible power plants in our city, we can decide what we want. This could be the end of our woes with our Meralco bills with all its added charges due to providers of its power. All the power plants we describe here are the power providers without any other agencies. For comments text cp number 09202112534. source
MVP asks DOE to ease rules on building new power plants
Business Mirror
by Lenie Lectura - Oct 27, 2014
MANUEL V. Pangilinan, chairman of the Manila Electric Co. (Meralco), on Monday called on the government to expedite the tedious process of securing the necessary permits to build new power plants, saying this is what the government needs to focus on to partly solve the power crisis this country faces next year.
“We just need a more expeditious process of approving those power plants and an overall policy on which new plants. Is it coal? Gas? Or whatever that the government sees prudent for the country so that the private sector could be guided,” Pangilinan said.
One of the power plants that hit a snag is the 600-megawatt (MW) Subic power project of Redondo Peninsula Energy (RP Energy), a consortium composed of Meralco PowerGen Corp., Aboitiz Power Corp. and Taiwan Cogeneration International Corp.
The Subic project has been in the backburner since 2010, owing to a number of legal challenges hurled by those who are against coal-fired power plants.
Energy Secretary Carlos Jericho L. Petilla had proposed that lawmakers come up with a bill that will hasten the construction of power plants.
“This is to shorten some of the stumbling blocks in coming up with power plants. This is intended for energy projects. We want a bill that will fast-track the processing of permits and, if possible, no TRO [temporary restraining order] against these projects,” the energy chief said.
“Will we do away with permitting? No,” Petilla said. “We have a law right now that any government project of national interest cannot be subject to a TRO except for the SC. The problem is, we cannot invoke that for power plants. It’s only for government projects.”
“Maybe there could be someone who determines national interest. The President can sign. Malacañang can come in and sign,” said Petilla, adding that these power projects affect national interest. “This particular aspect of coming up with a power plant is very important.”
The Department of Energy (DOE) has been vocal in soliciting the help of the private sector to build more power plants to augment the lack of power supply.
But the private sector is asking the government to diligently do its part.
“At the end of the day, it is difficult to predict what will happen in respect to the summer of 2015. Clearly, reserves are thin and Meralco is taking steps to maximize what’s available from ILPs [Interruptible Load Program] but if there will be forced outages…. So, again, probably it’s up to Congress and the government to agree what form of assurance would be provided,” Pangilinan said.
The DOE said that the Luzon grid needs 700 MW of additional capacity next year.
Pangilinan said the long-term solution to solve the country’s power woes is to build more power plants.
“This will give us a more adequate supply of power and also puts a downward pressure on pricing, similar to the law of supply and demand,” he said.
Meralco President Oscar Reyes said the utility firm is prepared to deal with the power crisis.
It is banking on its ILP and power-supply contracts to cover for the demand in the summer months next year.
Meanwhile, the utility firm is looking at closing the year with a core net income of P17.8 billion after it booked over P14 billion in reported net income from January to September this year.
“We are guiding full-year profitability on a core basis of P17.8 billion in reference to the 2013 core of slightly above P17 billion, so that’s about a 4.6-percent growth in core income for 2014 versus 2013,” Pangilinan said at a news conference.
Pangilinan said Meralco’s growth in the future is anchored heavily on its core-distribution business, which has so far provided 90 percent of the utility firm’s bottom-line results.
“We will continue to focus on service delivery network reliability and accelerated energization of our growing number of customers.
These give us the basis for guiding Meralco’s consolidated core net income from the full-year 2014 to be in order of P17.8 billion,” Pangilinan said.
In 2013 Meralco’s core net earnings inched up by 4.7 percent to P17.02 billion. At end-September this year the utility firm posted a core net income of P14.3 billion, up 5 percent in the same period a year ago. Reported net income, meanwhile, went up by 5 percent to P14.3 billion.
Revenues, of which electricity sales accounted for 98 percent, decreased by over 2 percent to P202.9 billion.
Meralco customers grew to 5.5 million at end-September. In terms of energy-sales mix, commercial accounts for 39 percent of total sales, with residential and industrial at 30 percent and 31 percent, respectively.
The company has programmed a capital expenditure of P13.5 billion next year, up from P11.5 billion that was budgeted this year. source
by Lenie Lectura - Oct 27, 2014
MANUEL V. Pangilinan, chairman of the Manila Electric Co. (Meralco), on Monday called on the government to expedite the tedious process of securing the necessary permits to build new power plants, saying this is what the government needs to focus on to partly solve the power crisis this country faces next year.
“We just need a more expeditious process of approving those power plants and an overall policy on which new plants. Is it coal? Gas? Or whatever that the government sees prudent for the country so that the private sector could be guided,” Pangilinan said.
One of the power plants that hit a snag is the 600-megawatt (MW) Subic power project of Redondo Peninsula Energy (RP Energy), a consortium composed of Meralco PowerGen Corp., Aboitiz Power Corp. and Taiwan Cogeneration International Corp.
The Subic project has been in the backburner since 2010, owing to a number of legal challenges hurled by those who are against coal-fired power plants.
Energy Secretary Carlos Jericho L. Petilla had proposed that lawmakers come up with a bill that will hasten the construction of power plants.
“This is to shorten some of the stumbling blocks in coming up with power plants. This is intended for energy projects. We want a bill that will fast-track the processing of permits and, if possible, no TRO [temporary restraining order] against these projects,” the energy chief said.
“Will we do away with permitting? No,” Petilla said. “We have a law right now that any government project of national interest cannot be subject to a TRO except for the SC. The problem is, we cannot invoke that for power plants. It’s only for government projects.”
“Maybe there could be someone who determines national interest. The President can sign. Malacañang can come in and sign,” said Petilla, adding that these power projects affect national interest. “This particular aspect of coming up with a power plant is very important.”
The Department of Energy (DOE) has been vocal in soliciting the help of the private sector to build more power plants to augment the lack of power supply.
But the private sector is asking the government to diligently do its part.
“At the end of the day, it is difficult to predict what will happen in respect to the summer of 2015. Clearly, reserves are thin and Meralco is taking steps to maximize what’s available from ILPs [Interruptible Load Program] but if there will be forced outages…. So, again, probably it’s up to Congress and the government to agree what form of assurance would be provided,” Pangilinan said.
The DOE said that the Luzon grid needs 700 MW of additional capacity next year.
Pangilinan said the long-term solution to solve the country’s power woes is to build more power plants.
“This will give us a more adequate supply of power and also puts a downward pressure on pricing, similar to the law of supply and demand,” he said.
Meralco President Oscar Reyes said the utility firm is prepared to deal with the power crisis.
It is banking on its ILP and power-supply contracts to cover for the demand in the summer months next year.
Meanwhile, the utility firm is looking at closing the year with a core net income of P17.8 billion after it booked over P14 billion in reported net income from January to September this year.
“We are guiding full-year profitability on a core basis of P17.8 billion in reference to the 2013 core of slightly above P17 billion, so that’s about a 4.6-percent growth in core income for 2014 versus 2013,” Pangilinan said at a news conference.
Pangilinan said Meralco’s growth in the future is anchored heavily on its core-distribution business, which has so far provided 90 percent of the utility firm’s bottom-line results.
“We will continue to focus on service delivery network reliability and accelerated energization of our growing number of customers.
These give us the basis for guiding Meralco’s consolidated core net income from the full-year 2014 to be in order of P17.8 billion,” Pangilinan said.
In 2013 Meralco’s core net earnings inched up by 4.7 percent to P17.02 billion. At end-September this year the utility firm posted a core net income of P14.3 billion, up 5 percent in the same period a year ago. Reported net income, meanwhile, went up by 5 percent to P14.3 billion.
Revenues, of which electricity sales accounted for 98 percent, decreased by over 2 percent to P202.9 billion.
Meralco customers grew to 5.5 million at end-September. In terms of energy-sales mix, commercial accounts for 39 percent of total sales, with residential and industrial at 30 percent and 31 percent, respectively.
The company has programmed a capital expenditure of P13.5 billion next year, up from P11.5 billion that was budgeted this year. source
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