Manila Bulletin
By James A. Loyola
Published: April 30, 2013
The Power Sector Assets and Liabilities Management (PSALM) Corporation will file a motion for the Energy Regulatory Commission (ERC) to reconsider its order on the transmission line loss double charging case filed by the Manila Electric Company (Meralco).
In a statement, PSALM said that the methodology adopted by the ERC deviated from the March 10, 2010 ERC decision, which was final and executory.
“The ERC, in its new ruling, adopted the straight discount method that Meralco proposed by deducting outright the 2.98 percent from the National Power Corporation (NPC) time-of-use (TOU) rates,” said PSALM president Emmanuel R. Ledesma, Jr.
He pointed out that “this method failed to consider the fact that the line loss component of the NPC-TOU rate is not analogous to the actual line loss imposed by the Philippine Electricity Market Corporation (PEMC), as they differ in terms of meter location.”
PSALM asserted that the March 10, 2010 ruling of the ERC should be implemented as worded because the procedure that the ruling proposed is fair to all parties concerned.
“The ERC originally ordered PEMC to provide NPC/PSALM its segregated line rental amounts for the transition supply contract (TSC) quantities from the start of the Wholesale Electricity Spot Market (WESM) to compute the accurate amount of the refund. The line loss imposed by PEMC is bundled together with line congestion, which PEMC charges its customers as line rentals,” Ledesma explained.
However, on June 10, 2010, PEMC manifested in a motion for reconsideration that the segregation of line rental is not feasible. Thereafter, the ERC issued an order dated March 7, 2011 requiring PEMC to submit an alternative method of segregation. To date, PEMC has not submitted data on the segregation of its line rental trading amounts.
“Thus, no breakdown is available as to the allocation of the bundled rate between the two components to determine how much PEMC is really charging for the line loss. It is for this reason that the ERC adopted Meralco’s straight deduction method,” Ledesma said.
He added that “the decision cannot be modified merely on the basis that one of the parties will be inconvenienced by its implementation. The March 10, 2010 decision is final and executory. Hence, any modification to this ruling is considered null and void.”
In addition, Ledesma disclosed that deducting the 2.98 percent line loss from the NPC-TOU amount effectively reduces the basic generation charge revenue requirement of the grid because the line loss in the NPC-TOU rates vis-à-vis the line loss component of the line rental differs in terms of reference points.
“PSALM, as a government-owned and -controlled entity, can neither forego its revenues nor refund government funds merely on the basis of practicality and convenience of a party due to the delay of such party in submitting the required data necessary to implement the decision, particularly if the alleged double recovery was not due to PSALM’s fault but the effect of simultaneous implementation of the NPC-TOU rates and the Price Determination Methodology (PDM) in the WESM, both of which are ERC-approved,” Ledesma said.
He noted that “PSALM continues to be bound by the TSC and the PDM as both remain valid until today. PSALM cannot deviate from either until an effective segregation mechanism from PEMC is approved by the ERC.” source
Tuesday, April 30, 2013
PSALM to appeal Meralco refund order
(The Philippine Star) | Updated April 30, 2013 - 12:00am
MANILA, Philippines - The Power Sector Assets and Liabilities Management (PSALM), the state agency tasked to privatize the assets of state-owned National Power Corp. (Napocor) and to manage its liabilities, will appeal the refund ordered by the Energy Regulatory Commission (ERC) for customers of Manila Electric Co. (Meralco).
PSALM said the ERC, in its recent order, deviated from a previous methodology it adopted in its March 2010 decision in computing the refund that PSALM and Napocor must give back to Meralco customers for transmission line losses charged by the state-run agency.
The ERC’s March 2013 decision approved a refund of P5.18 billion for customers of Meralco, which is half of the utility firm’s original refund claim of P9.8 billion.
Napocor, the state-owned power firm, will implement the refund through monthly payments to Meralco of P74 million until the full amount is covered, the ERC said in its decision.
In 2008, Meralco filed its petition against Napocor demanding the refund of its overpayments to state-owned power company.
The refund claim stemmed from the inability of the two parties to implement their contract provision on the reconciliation of the 2.98 percent line loss charge incorporated in Napocor’s rates imposed on Meralco and the actual line rental payments made by the power distributor to the Philippine Electricity Spot Market (PEMC), which operates the country’s trading floor for electricity, the Wholesale Electricity Spot Market (WESM).
However, PSALM said it would file a motion for reconsideration on behalf of Napocor. It said that while there was a significant reduction in the amount in the refund approved by the ERC – from P9.8 billion to P5.1 billion – it still was not privy to the computations submitted by Meralco to the ERC. source
Monday, April 29, 2013
Zamboanga outages stretch to nine hours
Business World Online
Posted on April 29, 2013 10:18:03 PM
ZAMBOANGA CITY -- Daily rotational brownouts here extended to nine hours yesterday, the second longest since the problem reemerged in Mindanao early this year, as the water level in Lake Lanao continued to fall.
The worst power outage was in March when this city suffered 11 hours of rotational brownouts, said Sherwin C. Manada, officer-in-charge and general manager of the Zamboanga City Electric Cooperative (Zamcelco). In previous weeks, the brownouts lasted seven hours.
On Monday, the National Power Corp. (Napocor) could provide the city with 35 megawatts (MW), less than 42 MW contracted by Zamcelco. The reduction was due to the falling water level in Lake Lanao, the source of water for Napocor’s hydropower plants.
Aside from the Napocor, this city’s distribution utility is also getting 18 MW from Aboitiz Power Corp. subsidiary Therma Marine, Inc.
Home of the country’s major sardines canners, Zamboanga City has a minimum power demand of 87 MW.
The National Grid Corp. of the Philippines’ Web site on Monday showed a power supply deficiency of 236 MW, about a fifth of the island’s total demand. In previous weeks, when rainfall was almost daily in many parts of the island, power shortage hovered between 120 and 180 MW.
As this developed, businessmen complained of mounting losses.
Pedro Rufo N. Soliven, president of the Zamboanga Chamber of Commerce, Inc., toldBusinessWorld on Monday that local businesses are losing about half a billion pesos monthly from the power outages.
“As of now, we are still gathering data. But it is already more than half a billion, and there is a possibility that we will reach P1 billion when we finalize our computation,” he said.
The losses, he said, come from fuel cost, inefficiency of labor, and other productivity issues caused by the outages.
Prices of goods have already increased as retailers and manufacturers pass the additional operating costs, particularly on fuel to run their generator sets, to consumers.
Energy Secretary Carlos Jericho L. Petilla told participants of the Visayas Power Summit last Friday that Mindanao will continue to suffer from brownouts until 2015, when an additional 588 MW from committed projects will become available.
The establishment of an Interim Mindanao Electricity Market (IMEM) before or by 2014 is expected to solve over-contracting, which has compounded supply problems on the island. He cited a Zamboanga power utility that sought to purchase 120 MW when it needs only 18 MW. Another plan is to build a liquefied natural gas facility in Cagayan de Oro by 2015 at the earliest, he added.
For Luzon and the Visayas, another power shortage could occur in 2020 and 2019, respectively, if peak demand grows at an annual average rate of 4.12%. -- DTW, MDL source
On Monday, the National Power Corp. (Napocor) could provide the city with 35 megawatts (MW), less than 42 MW contracted by Zamcelco. The reduction was due to the falling water level in Lake Lanao, the source of water for Napocor’s hydropower plants.
Aside from the Napocor, this city’s distribution utility is also getting 18 MW from Aboitiz Power Corp. subsidiary Therma Marine, Inc.
Home of the country’s major sardines canners, Zamboanga City has a minimum power demand of 87 MW.
The National Grid Corp. of the Philippines’ Web site on Monday showed a power supply deficiency of 236 MW, about a fifth of the island’s total demand. In previous weeks, when rainfall was almost daily in many parts of the island, power shortage hovered between 120 and 180 MW.
As this developed, businessmen complained of mounting losses.
Pedro Rufo N. Soliven, president of the Zamboanga Chamber of Commerce, Inc., toldBusinessWorld on Monday that local businesses are losing about half a billion pesos monthly from the power outages.
“As of now, we are still gathering data. But it is already more than half a billion, and there is a possibility that we will reach P1 billion when we finalize our computation,” he said.
The losses, he said, come from fuel cost, inefficiency of labor, and other productivity issues caused by the outages.
Prices of goods have already increased as retailers and manufacturers pass the additional operating costs, particularly on fuel to run their generator sets, to consumers.
Energy Secretary Carlos Jericho L. Petilla told participants of the Visayas Power Summit last Friday that Mindanao will continue to suffer from brownouts until 2015, when an additional 588 MW from committed projects will become available.
The establishment of an Interim Mindanao Electricity Market (IMEM) before or by 2014 is expected to solve over-contracting, which has compounded supply problems on the island. He cited a Zamboanga power utility that sought to purchase 120 MW when it needs only 18 MW. Another plan is to build a liquefied natural gas facility in Cagayan de Oro by 2015 at the earliest, he added.
For Luzon and the Visayas, another power shortage could occur in 2020 and 2019, respectively, if peak demand grows at an annual average rate of 4.12%. -- DTW, MDL source
EDC shuts down BacMan unit anew
By Amy R. Remo
Philippine Daily Inquirer
Philippine Daily Inquirer
Energy Development Corp., the country’s largest producer of geothermal energy, is again stopping operations of the 55-megawatt Unit 1 of the Bacon-Manito geothermal plants, a month after it resumed operations.
“We will shut down Unit 1 on May 2 for an inspection. We will make further decisions concerning the unit once the inspection has been carried out,” the Lopez affiliate said in a disclosure to the Philippine Stock Exchange Monday.
Shutting down Unit 1 was part of the original plan of EDC subsidiary Bacman Geothermal Inc. to assess the power facility’s condition, on whether it will be suitable enough to run commercially.
“Based on the findings of such inspection, Bacman Geothermal will decide whether or not any restrictions to the future operation of Unit 1 are necessary or appropriate, and the recommended time intervals between future inspections of Unit 1,” EDC had said.
EDC first resumed commercial operations of the BacMan facilities on February 25 this year, generating a total of 110 MW. This was the first time that the plants were able to run at their installed capacities, after EDC acquired the facility from the government in a bidding held in 2010.
Only the BacMan I geothermal facility, which has two 55-MW power units both commissioned in 1993, had been fully rehabilitated. The BacMan II facility, which has one remaining 20-MW unit from the original two units, has never been online.
Days after it resumed operations in Ferbuary, EDC had to shut down the geothermal plants, after a turbine blade at the Unit 2 was sheared off. Unit 1 was similarly shut down even if it did not experience similar problems.
EDC again started running Unit 1 on March 27 and was able to ramp up generation to 55 MW on April 8.
Based on previous estimates, EDC had said that it expected to generate P160 million in revenues per unit per month. At full commercial operations of 130 MW, EDC earlier estimated revenues to reach a high of P4.3 billion a year. source
PSALM says ERC erred in line-loss rate computation
Business Mirror
Published on Monday, 29 April 2013 19:50 Written by Lenie Lectura / Reporter
THE Power Sector Assets and Liabilities Management Corp. (PSALM) said on Monday the Energy Regulatory Commission (ERC) erred when it modified last month’s ruling which adopted Manila Electric Co.’s (Meralco) own computation.
“The ERC, in its new ruling, adopted the straight discount method that Meralco proposed by deducting outright the 2.98 percent from the National Power Corp. [Napocor] time-of-use [TOU] rates. This method failed to consider the fact that the line loss component of the Napocor-TOU rate is not analogous to the actual line loss imposed by the Philippine Electricity Market Corp. [PEMC], as they differ in terms of meter location,” PSALM President Emmanuel R. Ledesma Jr. said.
The PSALM official said the state firm will file a motion for reconsideration on the March 4 order of ERC on the transmission line-loss double charging case filed by Meralco.
PSALM said the methodology adopted by ERC deviated from the March 10 decision, which was final and executory.
“The ERC originally ordered PEMC to provide Napocor/PSALM its segregated line rental amounts for the transition supply contract [TSC] quantities from the start of the Wholesale Electricity Spot Market [WESM] to compute the accurate amount of the refund. The line loss imposed by PEMC is bundled together with line congestion, which PEMC charges its customers as line rentals,” Ledesma explained.
In a motion for reconsideration issued on June 10, 2010, PEMC manifested that the segregation of line rental is not feasible. Thereafter, the ERC issued an order dated March 7, 2011 requiring PEMC to submit an alternative method of segregation. To date, PEMC has not submitted data on the segregation of its line rental trading amounts.
“Thus, no breakdown is available as to the allocation of the bundled rate between the two components to determine how much PEMC is really charging for the line loss. It is for this reason that the ERC adopted Meralco’s straight deduction method,” Ledesma said.
But the PSALM official pointed out that ERC’s previous ruling cannot be modified merely on the basis that one of the parties will be inconvenienced by its implementation.
“The March 10, 2010, decision is final and executory. Hence, any modification to this ruling is considered null and void,” Ledesma said.
PSALM also pointed out that deducting the 2.98-percent line loss from the Napocor-TOU amount effectively reduces the basic generation charge revenue requirement of the grid because the line loss in the Napocor-TOU rates differs in terms of reference points in relation to the line-loss component of the line rental.
“PSALM, as a government-owned and -controlled entity, can neither forego its revenues nor refund government funds merely on the basis of practicality and convenience of a party due to the delay of such party in submitting the required data necessary to implement the decision, particularly if the alleged double recovery was not due to PSALM’s fault but the effect of simultaneous implementation of the Napocor-TOU rates and the price determination methodology [PDM] in the WESM, both of which are ERC-approved,” Ledesma said.
PSALM, he further said, continues to be bound by the TSC and the PDM as both remain valid until today. Therefore, PSALM cannot deviate from either until an effective segregation mechanism from PEMC is approved by the ERC.
PSALM also noted that the first computation that Meralco submitted for line losses amounted to P9 billion based on the 2.89-percent rate. In the ERC’s latest ruling, the share of successor generation companies in line losses was considered, thereby reducing the amount of line loss to be recovered from PSALM/Napocor to P5.1 billion.
“As PSALM and Napocor are not privy to the computations of Meralco and considering that the figures are not fixed, the credibility of the figures cannot be established despite the significant reduction from the original amount that Meralco submitted,” Ledesma said. source
EDC shuts down BacMan 1
Business Mirror
Published on Monday, 29 April 2013 19:49
Written by Lenie Lectura
Published on Monday, 29 April 2013 19:49
Written by Lenie Lectura
LOPEZ-led Energy Development Corp. (EDC) announced the shutdown of its Bacon-Manito (BacMan) Unit 1 facility this week.
“As planned, we will shut down Unit 1 on May 2 for inspection. We will make further decisions concerning the unit once the inspection has been carried out,” said EDC Corporate Information Officer Rowena Clemente, in a disclosure to the stock exchange on Monday.
The country’s largest producer of geothermal energy last month restarted the two 55-megawatt (MW) BacMan Unit 1 facility after it ordered its shut down more than a month ago.
BacMan Unit 1 now runs at its expected capacity but the company had announced early last month that it would shut it down after no more than 30 days of operation to inspect and assess the facility’s condition.
The plant straddles the towns of Bacon in Sorsogon and Manito in Albay. The BacMan geothermal power plant consists of: BacMan I (composed of 2 units producing 55 MW each) and BacMan II (with two units producing 20 MW each).
Unit 2 was shut down after a turbine blade was sheared off, causing damage to it. As a precaution, EDC suspended the operation of Unit1.
EDC officials said the resumption of BacMan’s commercial operations would have allowed the company to generate more revenues. The Lopez affiliate believed then that once rehabilitated and operating, the BacMan geothermal facilities could generate strong returns and cash flow from a vertically integrated operation.
EDC accounts for 62 percent of the total installed geothermal capacity in the country. The company expects steady growth this year despite the shutdown of the BacMan facility. source
Shorter brownouts expected in Socoteco II areas by May
By Allen V. Estabillo on April 29 2013 4:30 pm
GENERAL SANTOS CITY (MindaNews/29 April) — Power consumers here and in the provinces of Sarangani and South Cotabato are finally getting relief this week from the prolonged daily rotating brownouts that has plagued the area in the last two months.
City Mayor Darlene Antonino-Custodio disclosed over the weekend that the local government has facilitated the signing of new power sales contracts that would allow local distribution utility South Cotabato II Electric Cooperative (Socoteco II) to access around 15 megawatts (MW) of additional power supplies starting May 3.
She said the additional power supplies were projected to effectively cut down by half the area’s continuing seven-hour daily rotating outages.
“Starting May 3, all these contracts will take effect and we expect them to bring down our rotating brownouts by half or possibly even more,” the mayor announced during the grand rally on Saturday of the city’s Liberal Party-Achievers with Integrity Movement (LP-AIM) at the city gymnasium in Barangay Lagao.
The rally coincided with the scheduled meeting of President Benigno S. Aquino III with “local leaders and the community.”
Custodio, who is seeking reelection under the LP-AIM slate, said the city government and the Mindanao Development Authority have initiated negotiations in the past several weeks with various power producers for the augmentation of the Socoteco II’s power supplies, which is currently short by around 40 MW.
Socoteco II, which lists an average daily peak demand of 112 MW, serves this city, the entire Sarangani Province and the municipalities of Tupi and Polomolok in South Cotabato.
The National Power Corporation (Napocor) is only supplying around 43 MW of power to Socoteco II out of their 52 MW contract for this year due to the reduced capacity of its hydroelectric plants in Bukidnon and Lanao del Norte.
The Aboitiz-owned Therma Marine Inc. augments the area’s power requirements by 30 MW but the Socoteco II’s technical services department noted that the firm’s allocation slightly went down earlier due to some technical problems.
Owing to this, Socoteco II was forced to implement rotational brownouts of seven hours in two settings daily for each of its two feeder groupings.
To help address the area’s power shortage, the mayor said the Philippine Economic Zone Authority recently issued a temporary permit that allows companies located in declared special economic zones to sell their unused power allocations to entities outside their areas.
She said the issuance of the permit was an offshoot of the negotiations made by the local government with private companies in economic zones located within or near the city, among them pineapple giant Dole Philippines based in Polomolok town in South Cotabato, to allow Socoteco II to acquire their excess power supplies.
“A number of companies responded positively to this arrangement,” she said.
Custodio said they also submitted a request to the Energy Regulatory Commission (ERC), through chairperson Zenaida Ducut, to cut down or rationalize the processes involved in the approval of power sales contracts in the wake of the power crisis in Mindanao.
On Monday last week, she said the ERC chair personally informed her that the commission has issued a board resolution specifically addressing the matter.
The mayor said such resolution was needed to facilitate the sales contract between Socoteco II and the Alcantara Group’s Southern Philippines Power Corporation for an additional allocation of 3 MW as well as with its Iligan City-based subsidiary Mapalad Power Corporation for another 30 MW of power supplies.
“We’re targeting (Mapalad) to supply an initial 5 MW to Socoteco II by May 3. It will gradually increase until it reaches 30 MW by June,” she said.
To help reduce the area’s power demand, Custodio said the city government has started replacing the compact fluorescent light bulbs presently installed at the city’s streetlights with the energy-efficient light-emitting diode or LED lights.
She said they expect that such initiative will reduce the city government’s power consumption by 1.5 MW. (Allen V. Estabillo/MindaNews) source
City Mayor Darlene Antonino-Custodio disclosed over the weekend that the local government has facilitated the signing of new power sales contracts that would allow local distribution utility South Cotabato II Electric Cooperative (Socoteco II) to access around 15 megawatts (MW) of additional power supplies starting May 3.
She said the additional power supplies were projected to effectively cut down by half the area’s continuing seven-hour daily rotating outages.
“Starting May 3, all these contracts will take effect and we expect them to bring down our rotating brownouts by half or possibly even more,” the mayor announced during the grand rally on Saturday of the city’s Liberal Party-Achievers with Integrity Movement (LP-AIM) at the city gymnasium in Barangay Lagao.
The rally coincided with the scheduled meeting of President Benigno S. Aquino III with “local leaders and the community.”
Socoteco II, which lists an average daily peak demand of 112 MW, serves this city, the entire Sarangani Province and the municipalities of Tupi and Polomolok in South Cotabato.
The National Power Corporation (Napocor) is only supplying around 43 MW of power to Socoteco II out of their 52 MW contract for this year due to the reduced capacity of its hydroelectric plants in Bukidnon and Lanao del Norte.
The Aboitiz-owned Therma Marine Inc. augments the area’s power requirements by 30 MW but the Socoteco II’s technical services department noted that the firm’s allocation slightly went down earlier due to some technical problems.
Owing to this, Socoteco II was forced to implement rotational brownouts of seven hours in two settings daily for each of its two feeder groupings.
To help address the area’s power shortage, the mayor said the Philippine Economic Zone Authority recently issued a temporary permit that allows companies located in declared special economic zones to sell their unused power allocations to entities outside their areas.
She said the issuance of the permit was an offshoot of the negotiations made by the local government with private companies in economic zones located within or near the city, among them pineapple giant Dole Philippines based in Polomolok town in South Cotabato, to allow Socoteco II to acquire their excess power supplies.
“A number of companies responded positively to this arrangement,” she said.
Custodio said they also submitted a request to the Energy Regulatory Commission (ERC), through chairperson Zenaida Ducut, to cut down or rationalize the processes involved in the approval of power sales contracts in the wake of the power crisis in Mindanao.
On Monday last week, she said the ERC chair personally informed her that the commission has issued a board resolution specifically addressing the matter.
The mayor said such resolution was needed to facilitate the sales contract between Socoteco II and the Alcantara Group’s Southern Philippines Power Corporation for an additional allocation of 3 MW as well as with its Iligan City-based subsidiary Mapalad Power Corporation for another 30 MW of power supplies.
“We’re targeting (Mapalad) to supply an initial 5 MW to Socoteco II by May 3. It will gradually increase until it reaches 30 MW by June,” she said.
To help reduce the area’s power demand, Custodio said the city government has started replacing the compact fluorescent light bulbs presently installed at the city’s streetlights with the energy-efficient light-emitting diode or LED lights.
She said they expect that such initiative will reduce the city government’s power consumption by 1.5 MW. (Allen V. Estabillo/MindaNews) source
Northern sells Power to Trans-Asia, EDC
Manila Bulletin
James A. Loyola
Published: April 29, 2013
James A. Loyola
Published: April 29, 2013
Trans-Asia Oil and Energy Development Corporation (EDC) have signed a two-year contract to buy 15 megawatts of electricity from the 70MW Bakun Hydro Power Plant in Alilem, Ilocos Sur.
In a disclosure to the Philippine Stock Exchange, Trans-Asia said it signed the contract with Vivant-Sta. Clara Northern Renewables Corporation, the independent power producer administrator of the hydroelectric plant.
Vivant Corporation, which owns 46 percent of Northern Renewables through wholly-owned subsidiary Vivant Energy Corporation, also disclosed to the PSE that it also signed a similar contract to purchase generated electricity from Bakun with Energy Development Corporation.
The deal will allow Trans-Asia and EDC to beef up its portfolio of electricity supply from coal, diesel and geothermal power facilities in anticipation of open access and retail competition in the power sector by June.
Under this upcoming regulatory regime in the sector, electricity suppliers may directly negotiate with consumers for their power requirements.
Northern Renewables is a consortium composed of Vivant, ICS Renewables Inc. and Sta. Clara Power Corporation. It took control of state-owned National Power Corporation’s privatized contracted output of the Bakun plant. source
In a disclosure to the Philippine Stock Exchange, Trans-Asia said it signed the contract with Vivant-Sta. Clara Northern Renewables Corporation, the independent power producer administrator of the hydroelectric plant.
Vivant Corporation, which owns 46 percent of Northern Renewables through wholly-owned subsidiary Vivant Energy Corporation, also disclosed to the PSE that it also signed a similar contract to purchase generated electricity from Bakun with Energy Development Corporation.
The deal will allow Trans-Asia and EDC to beef up its portfolio of electricity supply from coal, diesel and geothermal power facilities in anticipation of open access and retail competition in the power sector by June.
Under this upcoming regulatory regime in the sector, electricity suppliers may directly negotiate with consumers for their power requirements.
Northern Renewables is a consortium composed of Vivant, ICS Renewables Inc. and Sta. Clara Power Corporation. It took control of state-owned National Power Corporation’s privatized contracted output of the Bakun plant. source
Meralco on track for launch of prepaid scheme
(The Philippine Star) | Updated April 29, 2013 - 12:00am
MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distribution company, is on track with the commercial launch of its prepaid retail electricity scheme in December, a ranking official said.
“We are integrating the system by June and July to bring us to commercial pilot stage by the late third quarter and have the commercial launch as planned by December,” said Alfredo S. Panlilio, senior vice president and head of customer retail services of Meralco, in a recent briefing on the project.
He said Meralco is already threshing out tie-ups with telecommunication companies for an e-loading scheme.
The company is also working with the Energy Regulatory Commission (ERC) for the details of the prepaid proposal and final approval.
Meralco hopes to cover around 100 to 200 households for the technical pilot testing and at the larger-scale commercial pilot testing with around 2,000 households.
Households availing of the program can go to Meralco business centers to reload but eventually, Meralco would allow reloading in Bayad Centers and Smart centers nationwide.
For the full rollout, Meralco is targeting to cover 40,000 households and has allotted a budget of $7 million for the whole system.
The pilot activities are meant to determine the viability of the planned prepaid platforms, the prepaid meters and the possible trouble-shooting mechanisms.
Meralco decided to provide a prepaid retail electricity scheme to its consumers to allow them to budget their electricity consumption as well as expenses. It would also enable them to monitor their electricity consumption as it happens.
The prepaid meter systems can tell consumers if their prepaid load is still enough for a given period and thus warn them if they need to reload to avoid disconnection.
Meralco signed in October last year a prepaid electricity system deal with GE to facilitate the prepaid platform.
A prepaid electricity system exists in other countries such as Indonesia, Australia and New Zealand. source
SUWECO2 borrows P1B from BDO
Manila Bulletin
By James A. Loyola Published: April 29, 2013
Sunwest Water and Electric Co. II (SUWECO2) and Banco De Oro (BDO) recently concluded a P1 billion project financing for the development of the 8.0MW Villasiga Hydropower project in Barangay Igsoro, Bugasong, Antique.
To be the first hydropower plant in Panay Island, the project is a run-of-river renewable energy type of power development that will optimize the potential use of the main Paliuan River to generate power.
The Villasiga project entails about P1.6 billion in investments with a potential annual energy generation of 31,479,070 Kwh.
Currently, the Villasiga project is about 85 percent completed and is expected to generate additional 31.4Gwh starting October this year.
SUWECO2 said the establishment of the Villasiga hydropower project is a response to the government’s call to increase the estimated current energy supply of the country from renewable sources from the current 20 percent to 50 percent in the next 15 years.
“The Villasiga project is considered a critical infrastructure that will help ease the power shortage currently being experienced in the Panay Island,” said Antique governor Exequiel Javier.
Endorsed by the Regional Development Council as early as in 2006, the Villasiga-1 Hydropower Plant is one of the priority renewable energy projects of the region.
“It is consistent with the thrusts and priorities of the Regional Development Plan of Western Visayas for 2011-2016 and the Regional Development Agenda for 2010-2020 (Western Visayas: The Country’s Front-Runner in Bio-Fuels and Renewable Energy Mix),” said RDC vice chairman and NEDA Regional Director Ro-Ann Bacal.
Bacal added that “it is expected to stabilize power voltage in Antique, as well as reduce the region’s dependency on imported fuel resulting to lower fuel costs.” source
By James A. Loyola Published: April 29, 2013
Sunwest Water and Electric Co. II (SUWECO2) and Banco De Oro (BDO) recently concluded a P1 billion project financing for the development of the 8.0MW Villasiga Hydropower project in Barangay Igsoro, Bugasong, Antique.
To be the first hydropower plant in Panay Island, the project is a run-of-river renewable energy type of power development that will optimize the potential use of the main Paliuan River to generate power.
The Villasiga project entails about P1.6 billion in investments with a potential annual energy generation of 31,479,070 Kwh.
Currently, the Villasiga project is about 85 percent completed and is expected to generate additional 31.4Gwh starting October this year.
SUWECO2 said the establishment of the Villasiga hydropower project is a response to the government’s call to increase the estimated current energy supply of the country from renewable sources from the current 20 percent to 50 percent in the next 15 years.
“The Villasiga project is considered a critical infrastructure that will help ease the power shortage currently being experienced in the Panay Island,” said Antique governor Exequiel Javier.
Endorsed by the Regional Development Council as early as in 2006, the Villasiga-1 Hydropower Plant is one of the priority renewable energy projects of the region.
“It is consistent with the thrusts and priorities of the Regional Development Plan of Western Visayas for 2011-2016 and the Regional Development Agenda for 2010-2020 (Western Visayas: The Country’s Front-Runner in Bio-Fuels and Renewable Energy Mix),” said RDC vice chairman and NEDA Regional Director Ro-Ann Bacal.
Bacal added that “it is expected to stabilize power voltage in Antique, as well as reduce the region’s dependency on imported fuel resulting to lower fuel costs.” source
More infra projects to restore full power in Mindanao
(The Philippine Star) | Updated April 29, 2013 - 12:00am
MANILA, Philippines - President Aquino has assured the people of Mindanao that the decision to build more infrastructure projects such as power plants will ensure that the energy crisis in the region will be resolved by 2015.
Speaking in Ozamis City over the weekend, Aquino said the government is pushing for projects particularly in the energy sector to boost the power sources in Mindanao.
“We are correcting the wrongs of the past, and we are eradicating corruption,” he said. “And if people have become used to Philippines’ being the laggard of Asia, now the country is reaping praises for our improving economy.”
Aquino said the government has started taking measures to effectively address the power crisis in Mindanao.
“All these happened because my real Boss - the entire Filipino nation - put their trust in me,” he said. “It is the people who planted all of these, nurtured them and made them grow in order to effect a full-blown change. They made change happen.”
The power plants will produce enough energy to sustain the needs of residents and the business sector in Mindanao by 2015, he added.
Aquino said the institutionalization of educational reforms remains among his administration’s top priorities to improve the entire educational system.
“Now that the backlog on books, chairs (will eventually be addressed), the backlog (of 66,800) classrooms will be solved very soon,” he said.
His administration will continue government funding for various infrastructure projects to further develop the commercial and tourism industries in Misamis Occidental, Aquino said.
Former senator Jamby Madrigal, the only Team PNoy senatorial candidate to join Aquino in the sortie, fully supported the government’s power plant projects to solve the eight-hour rotating blackouts in Mindanao.
“This problem needs a comprehensive solution,” she said. “And because of climate change, we have to face reality that we cannot just depend on hydropower alone as a source of energy. We also have to explore other indigenous sources of power.”
The near completion of the 300-megawatt coal-fired power plant in Davao City is expected to help ease the worsening power crisis in Mindanao.
Aboitiz Power Corp. said the coal-fired power plant project has already clocked more than one million hours of accident-free work. The coal power plant is one of the biggest power projects in Mindanao and is expected to finally resolve the power shortage.
The coal-fired power plant project offers an alternative source to Mindanao, which is largely dependent on hydropower sourced mainly from Lake Lanao in Marawi City and Pulangi River in Bukidnon. The project is expected to provide the much-needed power in the Davao region, the leading growth center in Mindanao.
Benjamin Cariaso Jr., Aboitiz Power subsidiary Therma South Inc. president and COO, said safety is of paramount importance, and that with the help of contractors like First Balfour, they have shown that they can build a world-class power plant in Davao City and Sta. Cruz, Davao del Sur.
“Combined with the safe man hours of all our other contractors, the Therma South project has achieved 2 million hours of safe, accident-free work,” he said.
The one-million-hour mark without total lost time due to injury (TLI) is the first ever achievement by any construction project in Davao region. The power plant, using the latest circulating fluidized bed technology, is targeted for completion in 2015.
As of Wednesday, shortage in the Mindanao grid hovered around 150 MW.
More than half of the power plant’s capacity had been signed up by distribution utilities and electric cooperatives in Mindanao. The power supply contracts will be submitted to the Energy Regulatory Commission (ERC) for review.
Manuel Orig, Therma South first vice president for government and community relations, said the milestone reflects the hard work and dedication of the whole construction team.
“We of course expect the same high level of safety consciousness from all our construction team workers who are building the plant which, when completed, should be able to significantly relieve the tight power supply situation in Mindanao.” he said.
Aboitiz Power is investing more than P35 billion to add more than 300 MW of power to the Mindanao grid. Subsidiary Hedcor has started construction of its Tudaya 1 and 2 hydropower project in Sta. Cruz, Davao del Sur to add 13 MW by 2014. Hedcor also recently received approval from host communities for its 52-MW hydro project in Manolo Fortich in Bukidnon.
In the short term, subsidiary Therma Marine supplies 200 MW of power to 23 electric cooperatives and distribution utilities to cushion the effects of the power shortage. - With Edith Regalado source
Sunday, April 28, 2013
Surigaonons lash at power coop for spike in electric bills
By Vanessa L. Almeda on April 28 2013 6:39 pm
SURIGAO CITY (MindaNews / 28 April) – Irate consumers flooded the Facebook site of the electric cooperative here over the past few days because of the steep surge of electricity bills while the daily brownouts lasting three to four hours persist.
Juanita O. Sering, customer service department head of the Surigao del Norte Electric Cooperative (SURNECO), said the cause of the increase is due to the hike in generation charges from the Power Sector Assets and Liabilities Management Corporation (PSALM) and Therma Marine Inc. (TMI).
She said SURNECO’s rate per kilowatt hour at P8 remains while generation charges from power producers have increased.
“The charges coming from TMI have already increased (which explains the increase) but our rates continue to remain the same,” Sering said.
Engr. Jorven R. Villafranca, SURNECO systems analyst, explained to MindaNews that another reason for the higher generation charges is due to the increase in the “contracted power supply” the cooperative bought from TMI.
He said starting this year, SURNECO had to increase the power it buys from the Aboitiz-owned power barge from five to six megawatts to help address the local deficiency of 10 MW. SURNECO originally wanted to get 8 MW from TMI but one of the latter’s power barges broke down last month, he added.
Surigao del Norte has a total peak demand of 26 MW but for the month of April, the National Grid Corporation of the Philippines (NGCP) can only serve 10.33 MW and Therma Marine, 6 MW.
A February billing from TMI showed SURNECO will pay P44.343 million for the 6 MW it supplies to the Surigao del Norte area. NGCP, although supplying electricity much more than TMI, is charging SURNECO much less, only P40 million for the same period.
Sering said SURNECO has not increased its basic charges as it has to go through a public consultation and the approval of the Energy Regulatory Commission (ERC).
The electric cooperative also had to increase its load nomination from TMI because of the failure of Napocor to supply the entire local power demand.
In its Facebook account “Surneco Surigao,” Facebook user Hajo Bago asked why the electric bill increased despite the frequent brownouts: “We’re not even using many appliances, like the refrigerator. Why the additional fees when these didn’t pass through consultation? Any time you can increase your rates without our knowledge. Is this still democracy?”
Bryan Ferol Calang, on the other hand, said Friday their participation in the Earth Hour was already too much. “We lost power this morning, and it’s now dark and we still don’t have electricity,” he added.
Chirry Lyn Arayan complained why her bill has doubled despite the frequent brownouts. She said she only has a TV, a small ceiling fan, and a fluorescent lamp that she uses only at night.
The online complaints did not get any responses from the electric cooperative.
Its public relations department said it is still finalizing strategies to make the issue more easily understood by the already irate public.
Sering said they already added more support to their corporate service department to accommodate complaints from customers. She added that those with increased electricity bills are “those who have appliances.”
She said once the complaint forms are filed, the electric cooperative will check the meter again. But “if there is really a problem then we can calibrate it,” she added.
The complaints started coming when SURNECO released its billing last Tuesday.
A sample of a consumer ledger’s form showed a resident’s power consumption for three months: for the February consumption, usage totaled 371 KWH with an equivalent bill of P2,884.49; March dropped to 253.1 KWH with a bill of P2,060.46; April increased to 346 KWH with a total monthly bill of P3,059.41. (Vanessa L. Almeda / MindaNews) source
SURIGAO CITY (MindaNews / 28 April) – Irate consumers flooded the Facebook site of the electric cooperative here over the past few days because of the steep surge of electricity bills while the daily brownouts lasting three to four hours persist.
Juanita O. Sering, customer service department head of the Surigao del Norte Electric Cooperative (SURNECO), said the cause of the increase is due to the hike in generation charges from the Power Sector Assets and Liabilities Management Corporation (PSALM) and Therma Marine Inc. (TMI).
She said SURNECO’s rate per kilowatt hour at P8 remains while generation charges from power producers have increased.
“The charges coming from TMI have already increased (which explains the increase) but our rates continue to remain the same,” Sering said.
Engr. Jorven R. Villafranca, SURNECO systems analyst, explained to MindaNews that another reason for the higher generation charges is due to the increase in the “contracted power supply” the cooperative bought from TMI.
Surigao del Norte has a total peak demand of 26 MW but for the month of April, the National Grid Corporation of the Philippines (NGCP) can only serve 10.33 MW and Therma Marine, 6 MW.
A February billing from TMI showed SURNECO will pay P44.343 million for the 6 MW it supplies to the Surigao del Norte area. NGCP, although supplying electricity much more than TMI, is charging SURNECO much less, only P40 million for the same period.
Sering said SURNECO has not increased its basic charges as it has to go through a public consultation and the approval of the Energy Regulatory Commission (ERC).
The electric cooperative also had to increase its load nomination from TMI because of the failure of Napocor to supply the entire local power demand.
In its Facebook account “Surneco Surigao,” Facebook user Hajo Bago asked why the electric bill increased despite the frequent brownouts: “We’re not even using many appliances, like the refrigerator. Why the additional fees when these didn’t pass through consultation? Any time you can increase your rates without our knowledge. Is this still democracy?”
Bryan Ferol Calang, on the other hand, said Friday their participation in the Earth Hour was already too much. “We lost power this morning, and it’s now dark and we still don’t have electricity,” he added.
Chirry Lyn Arayan complained why her bill has doubled despite the frequent brownouts. She said she only has a TV, a small ceiling fan, and a fluorescent lamp that she uses only at night.
The online complaints did not get any responses from the electric cooperative.
Its public relations department said it is still finalizing strategies to make the issue more easily understood by the already irate public.
Sering said they already added more support to their corporate service department to accommodate complaints from customers. She added that those with increased electricity bills are “those who have appliances.”
She said once the complaint forms are filed, the electric cooperative will check the meter again. But “if there is really a problem then we can calibrate it,” she added.
The complaints started coming when SURNECO released its billing last Tuesday.
A sample of a consumer ledger’s form showed a resident’s power consumption for three months: for the February consumption, usage totaled 371 KWH with an equivalent bill of P2,884.49; March dropped to 253.1 KWH with a bill of P2,060.46; April increased to 346 KWH with a total monthly bill of P3,059.41. (Vanessa L. Almeda / MindaNews) source
Trans-Asia signs supply deal with Ilocos hydro plant
Business Mirror
Published on Sunday, 28 April 2013 17:30 Written by Lenie Lectura / Reporter
Published on Sunday, 28 April 2013 17:30 Written by Lenie Lectura / Reporter
TRANS-ASIA Oil and Development Corp. and Vivant Corp.-Sta. Clara Northern Renewables Corp. signed last week a two-year power supply agreement.
Under the deal, Trans-Asia will purchase a portion of the 70-megawatt (MW) output of Bakun hydroelectric power plant in Alilem, Ilocos Sur.
“Northern Renewables signed a contract to purchase generated electricity with Trans-Asia for the purchase of 15 MW of electricity from the Bakun hydropower plant for a term of two years,” said Vivant Chief Information Officer Jess Anthonty Garcia.
Northern Renewables is the independent power producer of the Bakun facility which is currently the largest run-of-river hydropower plant in the Philippines.
Vivant Corp., through its wholly owned subsidiary Vivant Energy Corp., has a 46-percent stake in Northern Renewables. The company has substantial equity in the Visayan Electric Co. Inc., the second largest utility company in the Philippines, and holds a stake in Cebu Private Power Corp. which owns and operates one of the largest diesel power plants in Cebu. source
Protesters sue NEA for pushing Albay power co-op’s privatization
Business Mirror
Published on Sunday, 28 April 2013 15:20 Written by Manly M. Ugalde / Correspondent
Published on Sunday, 28 April 2013 15:20 Written by Manly M. Ugalde / Correspondent
LEGAZPI CITY—Protesters against the privatization of the bankrupt Albay Electric Cooperative (Aleco) are suing the National Electrification Administration (NEA) and the interim board it created for pushing for the cooperative’s privatization.
Aleco provides the power needs of more than 200,000 consumers.
The complaint filed with the Regional Trial Court (RTC) here seeks the issuance of a temporary-restraining order, including a writ for prohibition against the eight-member from pushing the plan.
The Aleco interim board under NEA-designated project supervisor Veronica Briones had already called for a pre-bid conference with five giant firms attending and indicating interest to buy Aleco, including its close to P4-billion debts.
Among the four interested buyers are the Aboitiz Group which owns the Tiwi (Albay) geothermal power plant, the Lopez group which owns the Bacon-Manito geothermal power at the boundary of Albay and Sorsogon, and the San Miguel Corp., said Bishop Joel Baylon of the Diocese of Legazpi. Baylon is the chairman of the NEA-created Aleco interim board.
Lawyer Bartolome Rayco and one Darlan Barcelon, both acting as consumer-members, filed the petition before the RTC saying the interim board efforts to allow a private firm operate Aleco through its so-called Private Sector Participation (PSP) scheme is illegal, saying it did not have the consumers-members approval as a cooperative.
Rayco, lawyer of the Aleco Union Employees, said despite other available remedies to bail out Aleco, the interim board headed by Bishop Baylon allegedly allowed itself to be used by the NEA to push the privatization plan hatched several years ago.
Rayco said Aleco, touted as extremely graft-ridden and among the 10 worst cooperatives in the country, had been under NEA management most of the past 30 years alternating with the Aleco board whose members were elected by consumers.
“Now that Aleco is bankrupt, the NEA again took over its control in early 2011, and created its own interim board after forcibly removing the elected board of directors through mass resignation,” said Rayco.
Bishop Baylon said under the PSP scheme, Aleco would be under a concessionaire to include the buy-out of Aleco’s P4-billion debt, declare all employees resigned and those who would not be rehired would be sufficiently paid according to the law and the Aleco Collective-Bargaining Agreement whichever is more beneficial to terminated employees.
“It’s quite a drastic move but beneficial for Aleco and its consumers,” the bishop said. Aleco suffers from poor power service, a high-system loss of 24 percent, allegations of padded billing and discrimination against poor consumers who get disconnected for failing to pay bills on time while the big ones are spared.
Baylon said the efforts to bring the Aleco issue to court is a welcome move from the protesters but said it would only delay the much-awaited decision the interim board deemed proper and right.
Rayco said the NEA-PSP scheme would allow the concessionaire to control Aleco for at least 25 years, renewable for a maximum of 25 more years. He said if the bid for PSP pushes through, Albay consumers should expect a sudden soar of electric rate.
Rayco said the NEA is pressuring consumers to give up their resistance against privatization by resorting to frequent brownouts and threats of disconnections from power generators.
Albay Gov. Joey Sarte Salceda had earlier rebuked the government for threatening to cut Albay’s power supply because of Aleco’s huge debts, saying it is the government that is indebted to Albay with its geothermal power being enjoyed by other regions including Metro Manila. source
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