Iris Gonzales (The Philippine Star) - November 27, 2018 - 12:00am
https://www.philstar.com/business/2018/11/27/1871926/sem-calaca-res-corp-talks-150-mw-supply
MANILA, Philippines — Sem-Calaca RES Corp. (SCRC), the retail electricity arm of integrated energy company Semirara Mining and Power Corp. (SMPC), is in talks with a number of large electricity users as potential clients.
SMPC president and chief operating officer Victor Consunji said the company is looking at supplying several customers with an aggregate volume of 150 megawatts.
“We are in talks with a number of contestable clients for an aggregate volume of 150 MW. The negotiations are in various stages of negotiation,” Consunji said.
The Consunji-led company has already sealed a four-megawatt retail supply contract with a Luzon- based steel manufacturing firm.
The supply deal commenced last September and will last for 15 months.
Consunji said the RES market could be a bright spot for the company given the challenging environment in the power sector brought about by growing competition in the market.
“We expect a challenging 2019 for the local power industry because of increasing power supply in the market and the growing competition for power contracts. With the increasing contestable customers switching to retail suppliers, the RES market could be a bright spot for SMPC,” Consunji said.
A retail electricity supplier (RES) refers to any person or entity authorized to sell, broker, market or aggregate electricity to the “contestable” market.
Effective January 2018, the threshold for the 12- month average peak demand to qualify to become a contestable customer was lowered from one megawatt to 750 kilowatts.
“We believe SCRC is capable of competing with the other RES players. We can provide customers with customized solutions to help manage their electricity costs,” Consunji said.
SCRC offers contestable power consumers with affordable electricity prices by securing sufficient supply from affiliate power plants SCPC and Southwest Luzon Power Generation Corp., other independent power generators, or from the Wholesale Electricity Spot Market.
At present, SMPC is the only power producer in the country that owns and mines its own fuel source.
This allows the company to generate affordable baseload power for the Luzon and Visayas grids.
Many power players have entered the RES market ahead of the Consunji Group, but company officials said the industry still has a lot of room to grow.
There are at least 1,377 contestable customers in Luzon, while there are 184 contestable customers in Visayas with a total demand of around 3,830 MW, according to the Competitive Retail Electricity Market (CREM).
Many of these contestable customers are still getting their power requirements from their distribution utilities.
Introduced in June 2013, RES are entities authorized by the Energy Regulatory Commission, the power regulator, to sell, broker or market electricity to big power users.
Prior to June 2013, all these big customers were captive customers of Manila Electric Co., the country’s biggest power distributor.
Tuesday, November 27, 2018
WESM operator urges SC to resolve issue on RCOA
Danessa Rivera (The Philippine Star) - November 27, 2018 - 12:00am
https://www.philstar.com/business/2018/11/27/1871925/wesm-operator-urges-sc-resolve-issue-rcoa
MANILA, Philippines — The operator of the country’s wholesale electricity spot market (WESM) has called on the Supreme Court to resolve the case hampering the full implementation of Retail Competition and Open Access (RCOA) program, which could bring the power of choice down to the household level.
Independent Electricity Market Operator of the Philippines (IEMOP) president Francis Saturnino Juan urged authorities to end the regulatory uncertainty in the electricity market by moving full steam ahead with the RCOA.
“Having RCOA moving again will definitely enhance competition at WESM. We have received inquiries from several potential contestable customers who consume more than 750 kilowatts (kw) if they can already register. They want to benefit from lower electricity prices that retail electricity suppliers can offer,” he said.
“It’s time we push ahead with the full implementation of the EPIRA Law,” he said, joining industry advocates who are appealing to the Supreme Court to act on a pending petition that effectively blocks the full implementation of RCOA.
The full implementation of the EPIRA Law through RCOA could be brought down to the level of household consumers.
“With RCOA, every household will soon have the power to choose the lowest cost electricity supplier and generate savings from their hard-earned pesos,” Juan said.
Under the RCOA regime, end-users that are part of the contestable market, or contestable customers (CCs), are given the choice to choose their supplier of electricity to foster competition in the generation and supply sector.
In choosing their retail electricity suppliers (RES), consumers generate savings in their power costs of up to 26 percent, according to at least one study conducted by the Manila Observatory.
It has been 17 years since EPIRA was enacted, and RCOA is one of the policy mechanisms that have yet to be implemented. RCOA aims to institutionalize competition in the supply of electricity, allowing the electricity end-users to choose their suppliers based on low price and other factors.
And in February last year, the high court stopped the Department of Energy (DOE) and Energy Regulatory Commission (ERC) to implement the mandatory migration of large power consumers to RCOA.
The temporary restraining order (TRO) sought by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo de Manila University and Riverbanks Development Corp., said the new rules supposedly limits the accredited suppliers for big power consumers which must be given a choice whether to stay with their current distribution utility suppliers.
The mandatory migration to RCOA of end-users with at least 1 MW usage was on last Feb. 26, 2017. Meanwhile, customers with at least 750 kw in demand was supposed to migrate on June 26, 2017.
The IEMOP official said the delay in acting on the petition is just causing regulatory uncertainty at a time when the government is looking for ways to reduce electricity prices to reduce the burden on ordinary Filipinos and boost the country’s competitiveness.
Policy makers and energy industry executives agree that the TRO has had a chilling effect on the market by preventing the migration of CCs and slowing down the government’s full implementation of RCOA, which is already 10 years late in terms of the EPIRA mandated timeline.
Without the TRO, there would be no legal obstacle for the eligible CCs to move to new RES. In addition, the lowering of the threshold to 500 kW – and, eventually, down to the household level – would increase the number of CCs. Everyone stands to benefit from an expanded market of consumers and suppliers.
In spite of the TRO, more and more CCs, those who were earlier issued certificates of contestability by the ERC, are opting to voluntarily migrate.
Out of the 1,873 CCs who consume 750 kW or more, 62 percent or 1,153 CCs now have retail supply contracts with RES representing 71 percent of the total 4,008 megawatts (MW) demand of all CCs.
They are enjoying a generation charge of P4.58 per kWh on average, lower by P0.62 from MERALCO’s charge of P5.20 per kWh. These are significant savings that CCs can pass on to consumers or reinvest in their operations.
Companies like Manila Water, Federal Land, and Unilever Philippines have inked deals with RES to source lower cost electricity from sustainable forms of generation like wind and solar farms. In line with its global target of shifting to renewable energy for all its power needs by 2030, Unilever will soon require all their assets in the Philippines to be powered by renewable energy.
https://www.philstar.com/business/2018/11/27/1871925/wesm-operator-urges-sc-resolve-issue-rcoa
MANILA, Philippines — The operator of the country’s wholesale electricity spot market (WESM) has called on the Supreme Court to resolve the case hampering the full implementation of Retail Competition and Open Access (RCOA) program, which could bring the power of choice down to the household level.
Independent Electricity Market Operator of the Philippines (IEMOP) president Francis Saturnino Juan urged authorities to end the regulatory uncertainty in the electricity market by moving full steam ahead with the RCOA.
“Having RCOA moving again will definitely enhance competition at WESM. We have received inquiries from several potential contestable customers who consume more than 750 kilowatts (kw) if they can already register. They want to benefit from lower electricity prices that retail electricity suppliers can offer,” he said.
“It’s time we push ahead with the full implementation of the EPIRA Law,” he said, joining industry advocates who are appealing to the Supreme Court to act on a pending petition that effectively blocks the full implementation of RCOA.
The full implementation of the EPIRA Law through RCOA could be brought down to the level of household consumers.
“With RCOA, every household will soon have the power to choose the lowest cost electricity supplier and generate savings from their hard-earned pesos,” Juan said.
Under the RCOA regime, end-users that are part of the contestable market, or contestable customers (CCs), are given the choice to choose their supplier of electricity to foster competition in the generation and supply sector.
In choosing their retail electricity suppliers (RES), consumers generate savings in their power costs of up to 26 percent, according to at least one study conducted by the Manila Observatory.
It has been 17 years since EPIRA was enacted, and RCOA is one of the policy mechanisms that have yet to be implemented. RCOA aims to institutionalize competition in the supply of electricity, allowing the electricity end-users to choose their suppliers based on low price and other factors.
And in February last year, the high court stopped the Department of Energy (DOE) and Energy Regulatory Commission (ERC) to implement the mandatory migration of large power consumers to RCOA.
The temporary restraining order (TRO) sought by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo de Manila University and Riverbanks Development Corp., said the new rules supposedly limits the accredited suppliers for big power consumers which must be given a choice whether to stay with their current distribution utility suppliers.
The mandatory migration to RCOA of end-users with at least 1 MW usage was on last Feb. 26, 2017. Meanwhile, customers with at least 750 kw in demand was supposed to migrate on June 26, 2017.
The IEMOP official said the delay in acting on the petition is just causing regulatory uncertainty at a time when the government is looking for ways to reduce electricity prices to reduce the burden on ordinary Filipinos and boost the country’s competitiveness.
Policy makers and energy industry executives agree that the TRO has had a chilling effect on the market by preventing the migration of CCs and slowing down the government’s full implementation of RCOA, which is already 10 years late in terms of the EPIRA mandated timeline.
Without the TRO, there would be no legal obstacle for the eligible CCs to move to new RES. In addition, the lowering of the threshold to 500 kW – and, eventually, down to the household level – would increase the number of CCs. Everyone stands to benefit from an expanded market of consumers and suppliers.
In spite of the TRO, more and more CCs, those who were earlier issued certificates of contestability by the ERC, are opting to voluntarily migrate.
Out of the 1,873 CCs who consume 750 kW or more, 62 percent or 1,153 CCs now have retail supply contracts with RES representing 71 percent of the total 4,008 megawatts (MW) demand of all CCs.
They are enjoying a generation charge of P4.58 per kWh on average, lower by P0.62 from MERALCO’s charge of P5.20 per kWh. These are significant savings that CCs can pass on to consumers or reinvest in their operations.
Companies like Manila Water, Federal Land, and Unilever Philippines have inked deals with RES to source lower cost electricity from sustainable forms of generation like wind and solar farms. In line with its global target of shifting to renewable energy for all its power needs by 2030, Unilever will soon require all their assets in the Philippines to be powered by renewable energy.
NGCP holds Luzon, VisMin summits to improve PHL transmission grid
By Lenie Lectura - November 27, 2018
THE National Grid Corp. of the
Philippines (NGCP) has convened energy stakeholders to map out next year’s
plans to further improve the country’s transmission grid.
With the theme “Strength in
Harmony,” the recently concluded conference brought together energy
stakeholders from the generation sector and regulating bodies, and discussed
the power grid’s operational and performance highlights, the power situation
outlook for the next calendar year, NGCP’s plans and programs, including
recently completed projects, and other transmission grid connection and
situational briefings.
“Every year, we bring together all
our partners from the generation sector to see how we can further improve and
create a seamlessly running system,” the NGCP said. “Our partners are
important, as all of us in the power industry are advancing technologies and
improving operations. Therefore, we always need to be on the same page for us
to keep the grid in optimal condition, and to prove the strength of the
Philippine power industry.”
The conference was held on October
23 in Quezon City for Luzon and on November 7 in Cebu for the Visayas and
Mindanao.
Apart from the generators
conference, NGCP also conducts an Annual Blackout Tabletop and Simulation
Drill, which seeks to ready the grid and its customers during a potential
blackout scenario, and Annual Grid Operations Mode Analysis Conference, to
evaluate the impact of NGCP’s current and future projects, and external factors
such as the growing power demand, to the country’s transmission grid.
“Our yearly events are in place to
assess our yearly performance and to make sure that we have set all possible
contingency plans in any given situation. These events are integral to our
operations, and they give us an avenue to build better relationships and more
open communication lines with our customers,” NGCP stated.
NGCP is a Filipino-led, privately
owned company in charge of operating, maintaining and developing the country’s
power grid, led by majority shareholders Henry Sy Jr. and Robert Coyiuto.
DOE crafting gas quality standards for PH
Published November 26, 2018, 10:00
PM By Myrna
M. Velasco
The Department of Energy (DOE) is at
the process of crafting the rules that will institutionalize the quality
standards of natural gas that will be extracted and/or imported into the
country.
The department has issued its draft
Circular and up for comments and inputs of relevant stakeholders in the
shifting gas market in the country.
On enforcing quality of gas that
will be utilized in the energy sector, the DOE took its cue from the set of
standards drawn up as early as year 2016 – or what has been concretized as
PNS/DOE QS 011:2016.
The DOE has stipulated that “all
entities engaged in the business of importing, trading, supply and distribution
of natural gas, shall supply natural gas to end-consumers in the country,
complying with the specifications of PNS/DOE QS 011:2016.”
In terms of unit of measurement of
the gas supply, it has been specified that the basic unit be expressed in cubic
meters and unit measurement shall be expressed in joules – hence, all reporting
shall also be done on such prescribed unit of measurements – while prefixes be
set in megajoules, terajoules, petajoules or as appropriate.
For gas with superior calorific
value and is anchored on Wobbe index, the DOE noted that such “shall be
expressed in megajoules per cubic meter.”
The Philippine gas sector is
confronted with its market reset in the 4-5 years given the much anticipated
decline of production at the Malampaya field, hence, the DOE is working on a
pathway that will ensure the continuous flow of gas supply in the country.
The remedy being pushed so far is
importation of liquefied natural gas (LNG) that shall be manned by the
DOE-selected entity to be putting up the LNG import facility.
Other than prescribing the
standards, however, players in the industry are more interested to know how
government regulators will be approaching gas pricing – given the fact that
even international markets now have fragmented indices when it comes to setting
the cost for the commodity.
So far, the DOE has been silent on
that realm despite many assertions from various sectors that gas may come as a
more expensive option compared to other fuel technology choices that could
power the country’s economic growth trajectory.
Primarily for the Asian market, it
was noted that uncertainties continue over competitive relationship between
oil-linked and Henry Hub-indexed LNG prices – and there’s also the
precipitation of other price indices across regional markets.
Industry and market players reckoned that
enhanced flexibility in LNG transactions will be essential in establishing a
well-functioning LNG market in the region – and players are likewise required
to introduce pricing mechanisms that timely reflects prevailing market conditions.
Meralco sees demand for power up 5% this year
By Lenie Lectura - November 26, 2018
MANILA Electric Co. (Meralco) is
expecting electricity demand this year to grow by 4.5 to 5 percent from 2017.
“We’ll probably end this year at
about 4.5 percent to 5 percent. I think we have to see what the final November
and December figures are, but call it a 4.5-percent to 5-percent growth
from last year,” Meralco President Oscar Reyes said.
This year’s energy sales growth
could be attributed to increased consumption from all consumer segments, he
said.
In 2017 energy sales volumes grew
by 5 percent to 42,102 gigawatt hours brought about by a growing customer base,
positive economic conditions, stable power supply and low power-plant outages
during the year.
This was underpinned by customer
retail and network initiatives to accelerate new customer acquisitions and
energization, and to minimize distribution-system interruption, Meralco said.
Without providing figures, Reyes
said Meralco earnings this year will improve from last year.
“Compared to 2017, I think because
of this volume growth, we expect a slightly better bottom line,” he said.
The utility firm posted a net income
of P20.4 billion last year, up 6 percent from the previous year mainly due to
higher electricity sales.
Core income also improved by 3
percent to P20.2 billion at end-2017, from 2016’s P19.6 billion.
Last year’s revenue was 10 percent
higher at P282.55 billion, from P257.18 billion in 2016. Electricity revenues
amounted to P275.2 billion, while the remaining P59.6 billion accounted for
distribution revenue.
Reyes said sales growth is against a
high base last year.
“We have to recognize that 2017 and
2018 are high base years so you cannot continue to grow at a same rate if your
preceding year is a high base,” he explained.
The Meralco official noted
developments in the sector that could slow down electricity consumption. These
include cooler temperature, higher inflation, interest rates, weaker peso and
increasing adoption of rooftop solar, battery and energy storage, which
adversely affected consumer spending.
“These are headwinds that
potentially mean that growth in electricity may decelerate. These will impact
not only demand for electricity but also demand for products and services,”
Reyes noted.
Inflation has been rising since the
beginning of the year, with the highest level for the year at 6.7 percent
registered in September this year, the highest since February 2009. Reel-feel
temperature for the first nine months of the year was lower by 0.05 degrees
Centigrade, compared with the same period in 2017 while the average temperature
for the period was lower by 0.39 °C.
Meralco, at end-September this year,
recorded 6.5 million customers.
Subscribe to:
Posts (Atom)