By Lenie Lectura May 29, 2020
https://businessmirror.com.ph/2020/05/29/electricity-spot-market-rate-seen-rising-in-june/
Prices in the Wholesale Electricity Spot Market Prices (WESM) could hit anywhere from P1.85 per kilowatt-hour to P4.27 per kWh in June, the Independent Electricity Market Operator of the Philippines Inc. (IEMOP) said Thursday.
IEMOP is the operator of WESM, the country’s electricity trading floor. Distribution utility firms partly source their requirements from WESM. In the May electricity bills, the Manila Electric Co. sourced 2 percent from WESM.
WESM price in June last year stood at P8.38 per kWh.
IEMOP COO Robinson Descanzo said during a virtual press briefing that WESM prices in June is expected to hit P1.85 per kWh based on an estimated peak demand of 12,153MW. Most parts of Luzon are expected to be placed under general community quarantine (GCQ) next month.
If peak demand goes up to13,368MW, WESM prices next month could hit P4.27 per kWh. He said this is based on a scenario wherein there is “aggressive opening of stranded businesses since the ECQ [enhanced community quarantine].”
The ECQ was implemented mid-March up to May 14. During the period, actual average supply was recorded at 13,340MW while actual average demand stood at 8,790MW. WESM prices during ECQ, stood at P1.77 per kWh.
Descanzo said demand peaked at 11,567MW on May 20 or May 21 during the modified ECQ.
“We have seen gradual increase in demand, especially when ECQ was modified. We expect higher demand in June when we shift to GCQ,” said Descanzo, adding that there is enough supply during the GCQ at an estimated 14,970MW.
The demand-supply scenario also affects WESM prices, explained Descanzo.
WESM prices in March, April and May this year were at P2.47 per kWh, P1.50 per kWh and P1.956 per kWh, respectively.
Last year, WESM prices hit P5.20 per kWh in March, P8.18 per kWh in April and P7.15 per kWh in May.
Friday, May 29, 2020
Mining giant admits damaging aboriginal site
By Agence France-Presse May 29, 2020
https://www.manilatimes.net/2020/05/29/news/world/mining-giant-admits-damaging-aboriginal-site/727940/
DARWIN: Anglo-Australian mining giant Rio Tinto has admitted damaging ancient Aboriginal rock shelters in the remote Pilbara region — blasting near the 46,000-year-old heritage site to expand an iron ore mine.
Traditional owners said the culturally significant cave in Juukan Gorge, Western Australia — one of the earliest known sites occupied by Aboriginals in Australia — had been destroyed in a “devastating blow” to the community.
Explosives were detonated near the site on Sunday in line with state government approvals granted seven years ago, Rio Tinto said in a statement.
“In 2013, ministerial consent was granted to allow Rio Tinto to conduct activity at the Brockman 4 mine that would impact Juukan 1 and Juukan 2 rock shelters,” the company’s spokesman said, adding the company had liaised with the Aboriginal community.
“Rio Tinto has worked constructively together with the PKKP people on a range of heritage matters under the agreement and has, where practicable, modified its operations to avoid heritage impacts and to protect places of cultural significance to the group,” Rio Tinto said.
Just one year after the blasting was approved, an archaeological dig at one of the shelters uncovered the oldest known example of bone tools in Australia — a sharpened kangaroo bone dating back 28,000 years — and a 4,000-year-old hair plait believed to have been worn as a belt.
DNA testing of the hair had shown a genetic link to the ancestors of indigenous people who still live in the area. The 2014 excavations also found one of the oldest examples of a grinding stone ever found in Australia.
“There are less than a handful of known Aboriginal sites in Australia that are as old as this one,” PuutuKuntiKurrama Land Committee Chairman John Ashburton said, describing the site as one of the earliest-occupied locations nationally.
“Our people are deeply troubled and saddened by the destruction of these rock shelters and are grieving the loss of connection to our ancestors, as well as our land,” he added.
The local Aboriginal Corp. said traditional owners had first learned Rio Tinto planned to blast the gorge near the rock shelters on May 15 after requesting access to the site.
Attempts to negotiate with the mining company to stop the blast failed, the corporation said, and it received advice that the charges could not safely be removed or left undetonated.
“We recognize that Rio Tinto has complied with its legal obligations, but we are gravely concerned at the inflexibility of the regulatory system,” Ashburton said.
“We are now working with Rio Tinto to safeguard the remaining rock shelters in the Juukan Gorge and ensure open communication between all stakeholders.” The Western Australia state government is currently reviewing the laws as part of a process that began in 2018.
https://www.manilatimes.net/2020/05/29/news/world/mining-giant-admits-damaging-aboriginal-site/727940/
DARWIN: Anglo-Australian mining giant Rio Tinto has admitted damaging ancient Aboriginal rock shelters in the remote Pilbara region — blasting near the 46,000-year-old heritage site to expand an iron ore mine.
Traditional owners said the culturally significant cave in Juukan Gorge, Western Australia — one of the earliest known sites occupied by Aboriginals in Australia — had been destroyed in a “devastating blow” to the community.
Explosives were detonated near the site on Sunday in line with state government approvals granted seven years ago, Rio Tinto said in a statement.
“In 2013, ministerial consent was granted to allow Rio Tinto to conduct activity at the Brockman 4 mine that would impact Juukan 1 and Juukan 2 rock shelters,” the company’s spokesman said, adding the company had liaised with the Aboriginal community.
“Rio Tinto has worked constructively together with the PKKP people on a range of heritage matters under the agreement and has, where practicable, modified its operations to avoid heritage impacts and to protect places of cultural significance to the group,” Rio Tinto said.
Just one year after the blasting was approved, an archaeological dig at one of the shelters uncovered the oldest known example of bone tools in Australia — a sharpened kangaroo bone dating back 28,000 years — and a 4,000-year-old hair plait believed to have been worn as a belt.
DNA testing of the hair had shown a genetic link to the ancestors of indigenous people who still live in the area. The 2014 excavations also found one of the oldest examples of a grinding stone ever found in Australia.
“There are less than a handful of known Aboriginal sites in Australia that are as old as this one,” PuutuKuntiKurrama Land Committee Chairman John Ashburton said, describing the site as one of the earliest-occupied locations nationally.
“Our people are deeply troubled and saddened by the destruction of these rock shelters and are grieving the loss of connection to our ancestors, as well as our land,” he added.
The local Aboriginal Corp. said traditional owners had first learned Rio Tinto planned to blast the gorge near the rock shelters on May 15 after requesting access to the site.
Attempts to negotiate with the mining company to stop the blast failed, the corporation said, and it received advice that the charges could not safely be removed or left undetonated.
“We recognize that Rio Tinto has complied with its legal obligations, but we are gravely concerned at the inflexibility of the regulatory system,” Ashburton said.
“We are now working with Rio Tinto to safeguard the remaining rock shelters in the Juukan Gorge and ensure open communication between all stakeholders.” The Western Australia state government is currently reviewing the laws as part of a process that began in 2018.
Meralco ensures continuous power supply to Covid-19 health centers
Updated May 28, 2020, 4:23 PM
https://technology.mb.com.ph/2020/05/28/meralco-ensures-continuous-power-supply-to-covid-19-health-centers/
Seen in the photo are Meralco crews upgrading the three (3) distribution transformers serving General Emilio Aguinaldo Memorial Hospital located at Trece Martires City in Cavite. This is one of the many vital hospitals and COVID-19 treatment and testing centers included the Meralco priority list when it comes to providing safe, adequate, and reliable supply of electricity. Meralco also recently announced the resumption of its Business Centers operations accepting service applications, bill payments, and other service-related inquiries since May 7. For more information and updates, follow the Meralco Facebook and Twitter Accounts, download and install the Meralco Online App, or call the Meralco 24/7 hotline at 16211. (Edgard Hilario)
https://technology.mb.com.ph/2020/05/28/meralco-ensures-continuous-power-supply-to-covid-19-health-centers/
Seen in the photo are Meralco crews upgrading the three (3) distribution transformers serving General Emilio Aguinaldo Memorial Hospital located at Trece Martires City in Cavite. This is one of the many vital hospitals and COVID-19 treatment and testing centers included the Meralco priority list when it comes to providing safe, adequate, and reliable supply of electricity. Meralco also recently announced the resumption of its Business Centers operations accepting service applications, bill payments, and other service-related inquiries since May 7. For more information and updates, follow the Meralco Facebook and Twitter Accounts, download and install the Meralco Online App, or call the Meralco 24/7 hotline at 16211. (Edgard Hilario)
Solon inquires into NGCP’s telecoms links in aftermath of PLDT Twitter account ‘hacking’
Published May 28, 2020, 4:30 PM By Ben Rosario
https://news.mb.com.ph/2020/05/28/solon-inquires-into-ngcps-telecoms-links-in-aftermath-of-pldt-twitter-account-hacking/
The reported hacking of the official Twitter account of PLDT’s customer service has prompted a call for congressional inquiry on the telecommunications links of the National Grid Corporation of the Philippines, a private corporation tasked to operate and maintain the state-owned power grid.
Deputy Speaker and Laguna Rep. Dan Fernandez made this call as he surprised many of his colleagues during the virtual hearing of the House Committee on Good Government when he raised the PLDT hacking incident during an inquiry into controversies triggered by the bill shock experienced by consumers in Meralco service areas.
“I want to know who is behind this incident. I want the NGCP to explain to the public what it is doing with telecommunications when it should concentrate on managing the power grid,” Fernandez later said in a statement to reporters.
The PLDT twitter hackers reportedly warned that rival Globe Telecommunications will be next to be attacked.
The House official said the NGCP, a consortium that partnered with the State Grid Corporation of China, should be able to fully explain where it stands on the telecommunications concerns of the country.
Lawyer Ronald Concepcion, who represented NGCP, said the firm is merely a system operator of the electrical grid.
“Hindi po namin hawak ang telecommunications network. Hindi namin sakop ang pag-hack sa PLDT,” the NGCP official stated. (We are not involved in telecommunications. We have nothing to do with the hacking of PLDT),.
In reaction, Fernandez declared: “I would like to disagree.”
The lawmaker disclosed that in 2013, the firm had sent a letter to the National Telecommunications Commission to allow it to “retain its exclusive use of over the fiber optics facility” of the company.
“This firm is not allowed to engaged in telecommunications but unfortunately there is a showing of its continuing engagement in this kind of business without telling the ERC (Energy Regulatory Commission),” he said.
According to Fernandez allowing NGCP to continue operating a telecommunications network through the fiber optics technology would put local telecom firms at a serious disadvantage.
“This is why there is a need for Congress to look into NGCP’s activities,” he told reporters.
https://news.mb.com.ph/2020/05/28/solon-inquires-into-ngcps-telecoms-links-in-aftermath-of-pldt-twitter-account-hacking/
The reported hacking of the official Twitter account of PLDT’s customer service has prompted a call for congressional inquiry on the telecommunications links of the National Grid Corporation of the Philippines, a private corporation tasked to operate and maintain the state-owned power grid.
Deputy Speaker and Laguna Rep. Dan Fernandez made this call as he surprised many of his colleagues during the virtual hearing of the House Committee on Good Government when he raised the PLDT hacking incident during an inquiry into controversies triggered by the bill shock experienced by consumers in Meralco service areas.
“I want to know who is behind this incident. I want the NGCP to explain to the public what it is doing with telecommunications when it should concentrate on managing the power grid,” Fernandez later said in a statement to reporters.
The PLDT twitter hackers reportedly warned that rival Globe Telecommunications will be next to be attacked.
The House official said the NGCP, a consortium that partnered with the State Grid Corporation of China, should be able to fully explain where it stands on the telecommunications concerns of the country.
Lawyer Ronald Concepcion, who represented NGCP, said the firm is merely a system operator of the electrical grid.
“Hindi po namin hawak ang telecommunications network. Hindi namin sakop ang pag-hack sa PLDT,” the NGCP official stated. (We are not involved in telecommunications. We have nothing to do with the hacking of PLDT),.
In reaction, Fernandez declared: “I would like to disagree.”
The lawmaker disclosed that in 2013, the firm had sent a letter to the National Telecommunications Commission to allow it to “retain its exclusive use of over the fiber optics facility” of the company.
“This firm is not allowed to engaged in telecommunications but unfortunately there is a showing of its continuing engagement in this kind of business without telling the ERC (Energy Regulatory Commission),” he said.
According to Fernandez allowing NGCP to continue operating a telecommunications network through the fiber optics technology would put local telecom firms at a serious disadvantage.
“This is why there is a need for Congress to look into NGCP’s activities,” he told reporters.
ERC urged act on P108-B overbillings
May 28, 2020 | Filed under: News | Posted by: Tempo Desk
http://tempo.com.ph/2020/05/28/erc-urged-act-on-p108-b-overbillings/
Party-list group Bayan Muna has urged the Energy Regulatory Commission to make the Manila Electric Co. apply as customer payments portions from P108 billion in overcharges, over-recoveries, and bill deposits that it collected and accumulated over the years.
“This huge amount of money should have been refunded to Meralco’s customers years ago. In this time of great difficulty and need, it is unconscionable for Meralco to continue holding on to these funds that do not belong to it anyway,” said Bayan Muna chairman Neri Colmenares.
“It’s equally dismaying that the ERC has not acted on these Meralco violations despite the persistent complaints of its customers over the years,” Colmenares said. “Meralco should do the proper and honorable thing by just returning the money to the rightful owners and applying it as payment or a Meralco COVID-19 Buffer Fund for electricity consumed during the enhanced community quarantine,” the Bayan Muna leader added.
“But if Meralco continues to play dumb and deaf to consumers’ complaints, the ERC should act and force the return of these funds. The return of these amounts should not stop the ERC from forcing Meralco to refund also excess charges that it has imposed during the period when we were under an enhanced community quarantine,” Colmenares stressed.
“Meralco cannot even claim the return of these funds as its donation because the money is owned by the customers in the first place. ERC should prioritize enforcing the return of the customers’ money now when millions of Filipinos are displaced from work and cut from their source of livelihood,” he said.
House Deputy Minority Leader Bayan Muna Rep. Carlos Isagani Zarate said these “P40 billion to P50 billion in Meralco overcharges between 2003 and 2019, another P29.6 billion in Meralco over-recoveries from 2013 to 2018, and the additional P29 billion in Meralco bill deposits as of 2018, if given back to the people, will certainly go a long way to help them especially in this time of severe crisis brought by the COVID-19 pandemic.”
http://tempo.com.ph/2020/05/28/erc-urged-act-on-p108-b-overbillings/
Party-list group Bayan Muna has urged the Energy Regulatory Commission to make the Manila Electric Co. apply as customer payments portions from P108 billion in overcharges, over-recoveries, and bill deposits that it collected and accumulated over the years.
“This huge amount of money should have been refunded to Meralco’s customers years ago. In this time of great difficulty and need, it is unconscionable for Meralco to continue holding on to these funds that do not belong to it anyway,” said Bayan Muna chairman Neri Colmenares.
“It’s equally dismaying that the ERC has not acted on these Meralco violations despite the persistent complaints of its customers over the years,” Colmenares said. “Meralco should do the proper and honorable thing by just returning the money to the rightful owners and applying it as payment or a Meralco COVID-19 Buffer Fund for electricity consumed during the enhanced community quarantine,” the Bayan Muna leader added.
“But if Meralco continues to play dumb and deaf to consumers’ complaints, the ERC should act and force the return of these funds. The return of these amounts should not stop the ERC from forcing Meralco to refund also excess charges that it has imposed during the period when we were under an enhanced community quarantine,” Colmenares stressed.
“Meralco cannot even claim the return of these funds as its donation because the money is owned by the customers in the first place. ERC should prioritize enforcing the return of the customers’ money now when millions of Filipinos are displaced from work and cut from their source of livelihood,” he said.
House Deputy Minority Leader Bayan Muna Rep. Carlos Isagani Zarate said these “P40 billion to P50 billion in Meralco overcharges between 2003 and 2019, another P29.6 billion in Meralco over-recoveries from 2013 to 2018, and the additional P29 billion in Meralco bill deposits as of 2018, if given back to the people, will certainly go a long way to help them especially in this time of severe crisis brought by the COVID-19 pandemic.”
Thursday, May 28, 2020
ERC oks P410 million Meralco projects
Danessa Rivera (The Philippine Star) - May 28, 2020 - 12:00am
https://www.philstar.com/business/2020/05/28/2016945/erc-oks-p410-million-meralco-projects
MANILA, Philippines — The Energy Regulatory Commission has cleared Manila Electric Co. (Meralco) to spend P410.45 million for six capital expenditure projects.
The amount is lower than the P450.75 million that the power distributor had applied for.
Meralco said the projects include the expansion of Bagbaguin substation worth P162.58 million, installation of 34.5-kv metal clad switchgear at Dasmariñas 83 MVA power transformer bank No. 1 worth P68.16 million, rebuilding of portion of Dasmariñas-FCIE 115-kv Line worth P25.14 million, replacement of power transformer no. 2 at Mandaluyong substation worth P52.91 million, cut-in of Pinagbuhatan switching station worth P55.22 million and acquisition of a spare 83 MVA 110-kv, 34.5-kv, 13.8-kv power transformer worth P46.44 million.
These projects were originally filed in 2015, but were not approved due to lack of justification during that time.
However, Meralco re-filed the deferred projects to ensure continuous reliable operation of its distribution network as well as distribution service and connection to meet the growing and future needs of its customers.
While ERC approved the lower cost, the actual cost of the projects is still subject to optimization review in the regulatory reset.
“The optimization review will be done during the reset process under existing mechanism when the new distribution rates will be set. This is because optimization has to be undertaken while taking into account the entire distribution system and not facilities in specific areas only,” the ERC said.
The expansion of Bagbaguin substation was proposed to address the capacity deficiency of Meralco’s several distribution facilities.
The installation of 34.5-kilovolt Metal Clad Switchgear at Dasmariñas 83MVA Power Transformer Bank No. 1 will address the capacity deficiency of the nearby Imus Power Transformer Bank No. 2.
The rebuilding of a portion of Dasmariñas-FCIE 115-kv Line is intended to augment the line capacity, provide operational flexibility, and enhance the reliability of the subtransmission system in the Cavite sector.
The replacement of power transformer no. 2 at Mandaluyong substation would optimize the load capacity of the Mandaluyong substation transformers, and improve the reliability and quality of service to customers in Pasig and Mandaluyong areas.
The cut-in of Pinagbuhatan switching station will increase system reliability in Meralco’s Dolores 230-kv—15-kv delivery point substation.
The acquisition of a spare 83 MVA 110-kv, 34.5-kv, 13.8-kv power transformer would also increase the system reliability of Meralco’s network.
https://www.philstar.com/business/2020/05/28/2016945/erc-oks-p410-million-meralco-projects
MANILA, Philippines — The Energy Regulatory Commission has cleared Manila Electric Co. (Meralco) to spend P410.45 million for six capital expenditure projects.
The amount is lower than the P450.75 million that the power distributor had applied for.
Meralco said the projects include the expansion of Bagbaguin substation worth P162.58 million, installation of 34.5-kv metal clad switchgear at Dasmariñas 83 MVA power transformer bank No. 1 worth P68.16 million, rebuilding of portion of Dasmariñas-FCIE 115-kv Line worth P25.14 million, replacement of power transformer no. 2 at Mandaluyong substation worth P52.91 million, cut-in of Pinagbuhatan switching station worth P55.22 million and acquisition of a spare 83 MVA 110-kv, 34.5-kv, 13.8-kv power transformer worth P46.44 million.
These projects were originally filed in 2015, but were not approved due to lack of justification during that time.
However, Meralco re-filed the deferred projects to ensure continuous reliable operation of its distribution network as well as distribution service and connection to meet the growing and future needs of its customers.
While ERC approved the lower cost, the actual cost of the projects is still subject to optimization review in the regulatory reset.
“The optimization review will be done during the reset process under existing mechanism when the new distribution rates will be set. This is because optimization has to be undertaken while taking into account the entire distribution system and not facilities in specific areas only,” the ERC said.
The expansion of Bagbaguin substation was proposed to address the capacity deficiency of Meralco’s several distribution facilities.
The installation of 34.5-kilovolt Metal Clad Switchgear at Dasmariñas 83MVA Power Transformer Bank No. 1 will address the capacity deficiency of the nearby Imus Power Transformer Bank No. 2.
The rebuilding of a portion of Dasmariñas-FCIE 115-kv Line is intended to augment the line capacity, provide operational flexibility, and enhance the reliability of the subtransmission system in the Cavite sector.
The replacement of power transformer no. 2 at Mandaluyong substation would optimize the load capacity of the Mandaluyong substation transformers, and improve the reliability and quality of service to customers in Pasig and Mandaluyong areas.
The cut-in of Pinagbuhatan switching station will increase system reliability in Meralco’s Dolores 230-kv—15-kv delivery point substation.
The acquisition of a spare 83 MVA 110-kv, 34.5-kv, 13.8-kv power transformer would also increase the system reliability of Meralco’s network.
Senator presses DOE to enforce EVOSS law
By Butch Fernandez May 28, 2020
https://businessmirror.com.ph/2020/05/28/senator-presses-doe-to-enforce-evoss-law/
GOVERNMENT regulators were pressed Wednesday to speed up the process of enforcing an awaited remedial legislation mandating government to provide an online process for issuing permits to power providers that President Duterte had already signed into law way back last March 8, 2019.
Sen. Sherwin T. Gatchalian prodded the Department of Energy (DOE) to promptly implement the Energy Virtual One-Stop Shop (EVOSS) Law that Congress earlier passed to speed up the permitting process of power generation, transmission, and distribution in the Philippines under an enabling law will remain unimpeded as the country remains in quarantine.
Stressing the importance of enforcing the new law, the senator suggested the DOE can proceed to set EVOSS in motion even in the midst of the Covid-19 pandemic, pointing out that it is “simply an online process of completing requirements of energy-related projects.”
Gatchalian, chairman of the Senate energy committee, pointed out that the EVOSS will operate as “a virtual storage of integrated shared services of all government offices, including government -owned and -controlled corporations [GOCCs] and local government units [LGUs] involved in the process of power generation, transmission or distribution.”
In a news statement, the senator prodded all agencies involved to start the “contactless processes and approvals through an online system” so that the people will not be compelled to be physically present in all agencies for the necessary permits they need.
He noted the timely passage of the new law in the midst of the raging contagion, which requires “social distancing” to prevent spreading the deadly virus.
“Sa panahon ngayon na ang lahat ay dapat may social distancing, malaki ang maitutulong ng EVOSS Law upang tuloy-tuloy pa rin ang pag proseso ng mga energy-related permits dahil ang lahat ng ito ay maaaring i-proseso online. EVOSS is the perfect tool for new normal. I will make sure that this law will be implemented,” added Gatchalian.
The senator said that the spirit of the EVOSS law “is really to get rid of the red tape in the energy sector by promoting a faster, practical, and simplified process to ensure the quality, reliability and security of energy and expedite the process of supply to meet the country’s demand in a timely manner even during extraordinary times such as pandemics.”
https://businessmirror.com.ph/2020/05/28/senator-presses-doe-to-enforce-evoss-law/
GOVERNMENT regulators were pressed Wednesday to speed up the process of enforcing an awaited remedial legislation mandating government to provide an online process for issuing permits to power providers that President Duterte had already signed into law way back last March 8, 2019.
Sen. Sherwin T. Gatchalian prodded the Department of Energy (DOE) to promptly implement the Energy Virtual One-Stop Shop (EVOSS) Law that Congress earlier passed to speed up the permitting process of power generation, transmission, and distribution in the Philippines under an enabling law will remain unimpeded as the country remains in quarantine.
Stressing the importance of enforcing the new law, the senator suggested the DOE can proceed to set EVOSS in motion even in the midst of the Covid-19 pandemic, pointing out that it is “simply an online process of completing requirements of energy-related projects.”
Gatchalian, chairman of the Senate energy committee, pointed out that the EVOSS will operate as “a virtual storage of integrated shared services of all government offices, including government -owned and -controlled corporations [GOCCs] and local government units [LGUs] involved in the process of power generation, transmission or distribution.”
In a news statement, the senator prodded all agencies involved to start the “contactless processes and approvals through an online system” so that the people will not be compelled to be physically present in all agencies for the necessary permits they need.
He noted the timely passage of the new law in the midst of the raging contagion, which requires “social distancing” to prevent spreading the deadly virus.
“Sa panahon ngayon na ang lahat ay dapat may social distancing, malaki ang maitutulong ng EVOSS Law upang tuloy-tuloy pa rin ang pag proseso ng mga energy-related permits dahil ang lahat ng ito ay maaaring i-proseso online. EVOSS is the perfect tool for new normal. I will make sure that this law will be implemented,” added Gatchalian.
The senator said that the spirit of the EVOSS law “is really to get rid of the red tape in the energy sector by promoting a faster, practical, and simplified process to ensure the quality, reliability and security of energy and expedite the process of supply to meet the country’s demand in a timely manner even during extraordinary times such as pandemics.”
Meralco eyes 3,000 MW capacity
Danessa Rivera (The Philippine Star) - May 28, 2020 - 12:00am
https://www.philstar.com/business/2020/05/28/2016939/meralco-eyes-3000-mw-capacity
MANILA, Philippines — Manila Electric Co. is eyeing 3,000 megawatts (MW) in capacity as part of its growth strategy for power generating unit Meralco Powergen Corp. (MGen).
“We are targeting around 3,000 MW in the next five years, with 1,000 MW allocated entirely to renewable energy projects,” Meralco president and CEO Ray Espinosa said during the company’s virtual stockholders’ meeting yesterday.
Espinosa said the power generation portfolio would complement the company’s distribution business.
“Building Meralco’s power distribution portfolio remains a highly strategic initiative of our company as we seek to add much needed reliable, and efficient power supply to support the Philippines’ growth momentum,” Espinosa said in the firm’s annual report.
Of the total target generation capacity, 1,000 MW will be carved out for renewable energy as Meralco weans itself “out of fossil fuels to renewable energy sources”.
Meralco started its aggressive expansion into the renewable energy space last year with the establishment of MGen’s subsidiary MGEN Renewable Energy Inc. (MGreen).
MGreen would serve as the platform for the strategic push to develop renewable energy projects—primarily solar, wind and run-of-river hydro—to help ensure the availability of clean and green power supply in the coming years.
“We have also begun an important energy transition via MGreen which aims to build up to 1,000 MW of renewable energy projects in the next five to seven years,” Espinosa said.
MGen is working on two solar farms in Bulacan and Tarlac, which have a combined capacity of 135 MW.
These projects, however, hit a snag amid the coronavirus pandemic since the engineering, procurement and construction (EPC) contractor and solar panels are from China.
MGen suspended all site activities in its projects last March 18 in line with President Duterte’s community quarantine order in Luzon.
So far, it has resumed partial work on the Bulacan solar project, which is under PowerSource First Bulacan Solar Inc. (PFBSI), in which MGreen has a 40 percent stake.
“Looking ahead, MGen is preparing for the launch and commercial operations of another highly efficient, supercritical power plant, the 2x600-MW Atimonan One Energy,” Espinosa said.
The 1,200-MW A1E ultra supercritical coal-fired power plant—located in Atimonan, Quezon—now has a total project cost of P160 billion. It is now awaiting the final terms of reference and will participate in Meralco’s competitive selection process (CSP).
https://www.philstar.com/business/2020/05/28/2016939/meralco-eyes-3000-mw-capacity
MANILA, Philippines — Manila Electric Co. is eyeing 3,000 megawatts (MW) in capacity as part of its growth strategy for power generating unit Meralco Powergen Corp. (MGen).
“We are targeting around 3,000 MW in the next five years, with 1,000 MW allocated entirely to renewable energy projects,” Meralco president and CEO Ray Espinosa said during the company’s virtual stockholders’ meeting yesterday.
Espinosa said the power generation portfolio would complement the company’s distribution business.
“Building Meralco’s power distribution portfolio remains a highly strategic initiative of our company as we seek to add much needed reliable, and efficient power supply to support the Philippines’ growth momentum,” Espinosa said in the firm’s annual report.
Of the total target generation capacity, 1,000 MW will be carved out for renewable energy as Meralco weans itself “out of fossil fuels to renewable energy sources”.
Meralco started its aggressive expansion into the renewable energy space last year with the establishment of MGen’s subsidiary MGEN Renewable Energy Inc. (MGreen).
MGreen would serve as the platform for the strategic push to develop renewable energy projects—primarily solar, wind and run-of-river hydro—to help ensure the availability of clean and green power supply in the coming years.
“We have also begun an important energy transition via MGreen which aims to build up to 1,000 MW of renewable energy projects in the next five to seven years,” Espinosa said.
MGen is working on two solar farms in Bulacan and Tarlac, which have a combined capacity of 135 MW.
These projects, however, hit a snag amid the coronavirus pandemic since the engineering, procurement and construction (EPC) contractor and solar panels are from China.
MGen suspended all site activities in its projects last March 18 in line with President Duterte’s community quarantine order in Luzon.
So far, it has resumed partial work on the Bulacan solar project, which is under PowerSource First Bulacan Solar Inc. (PFBSI), in which MGreen has a 40 percent stake.
“Looking ahead, MGen is preparing for the launch and commercial operations of another highly efficient, supercritical power plant, the 2x600-MW Atimonan One Energy,” Espinosa said.
The 1,200-MW A1E ultra supercritical coal-fired power plant—located in Atimonan, Quezon—now has a total project cost of P160 billion. It is now awaiting the final terms of reference and will participate in Meralco’s competitive selection process (CSP).
Meralco urged to restore power in Caloocan area
posted May 27, 2020 at 10:20 pm by Rio N. Araja
https://www.manilastandard.net/index.php/news/national/324669/meralco-urged-to-restore-power-in-caloocan-area.html
The Presidential Commission on Urban Poor has asked the Manila Electric Co. (Meralco) and Maynilad Water Services Inc. to "immediately" restore power and water in the area, respectively, in Pangarap Village, Caloocan City.
In a statement, PCUP chairperson and chief executive officer Alvin Feliciano said amid the coronavirus disease 2019 (COVID-19) pandemic, the two public utility firms must look into the sorry state of the residents of barangays 181 and 182.
Amid the enhanced community quarantine in April, the agency downloaded the Department of Labor and Employment's Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program to the residents affected by the no-work no-pay policy, he said.
The agency's field operations unit in Luzon requested Bataan Rep. Enriquez Garcia to give the provision of TUPAD program for the Caloocan residents, he said.
https://www.manilastandard.net/index.php/news/national/324669/meralco-urged-to-restore-power-in-caloocan-area.html
The Presidential Commission on Urban Poor has asked the Manila Electric Co. (Meralco) and Maynilad Water Services Inc. to "immediately" restore power and water in the area, respectively, in Pangarap Village, Caloocan City.
In a statement, PCUP chairperson and chief executive officer Alvin Feliciano said amid the coronavirus disease 2019 (COVID-19) pandemic, the two public utility firms must look into the sorry state of the residents of barangays 181 and 182.
Amid the enhanced community quarantine in April, the agency downloaded the Department of Labor and Employment's Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program to the residents affected by the no-work no-pay policy, he said.
The agency's field operations unit in Luzon requested Bataan Rep. Enriquez Garcia to give the provision of TUPAD program for the Caloocan residents, he said.
Rural co-ops seek force-majeure relief from power contracts
May 27, 2020 | 8:43 pm
https://www.bworldonline.com/rural-co-ops-seek-force-majeure-relief-from-power-contracts/
RURAL power utilities are asking the Energy Regulatory Commission (ERC) to ease their obligations under power contracts entered into with generating companies, while promising to provide consumers relief from bill payments as ordered.
The Philippine Rural Electric Cooperatives Association (Philreca) asked the ERC Wednesday to issue a new advisory allowing electric cooperatives to invoke force majeure clauses in their power supply agreements (PSA).
“As part of our advocacy to provide affordable access to electricity, Philreca asks the indulgence of the Regulators as we appeal again the issue on Prompt Payment Discounts, minimum energy off-take, fix charges, and ‘force majeure’ provisions for the issuance of guidelines or advisory for the benefit of the member-consumer-owners (MCO),” Philreca Executive Director Janeene D. Colingan said in a statement.
A force majeure event is invoked when parties to a contract deem it impossible to fulfill their obligations.
Asked to comment, the ERC said the utilities must first discuss with their partners any changes they would like to make in their agreements, noting the varied impact of the government’s quarantine measures to power utilities.
“The position of the commission is that any modifications to the approved PSA should be discussed by the parties first as we see different impact of the community quarantine to the DUs (distribution utilities),” ERC Spokesperson Floresinda B. Digal told BusinessWorld.
A uniform order on relief for all utilities may not supersede such negotiations, she added.
In April, Manila Electric Co. (Meralco) invoked force majeure in its power contracts, which resulted in the lowering of generation charges in its customers’ May electricity bills.
Philreca warned that higher generation charges will be passed on to customers if the regulator does not allow the removal of such bill components.
“As we have reiterated before, if no intervention is done, paying these fixed charges… will significantly result in a higher generation charge/component in a consumer’s electricity bill,” Ms. Colingan said.
The commission in its May 22 advisory said the availment of prompt payment discounts is subjected to negotiations between utilities and their partners, the benefits from which are required to be shared with customers.
Last week, the ERC told power distributors to allow their customers consuming 200 kilowatt-hours (kWh) or less to settle their unpaid bills from March to May in six installments starting mid-June, while allowing those with below 200 kWh to pay them in four portions.
The regulator warned of penalties against utilities that fail to comply with its advisories on bills payments. — Adam J. Ang
https://www.bworldonline.com/rural-co-ops-seek-force-majeure-relief-from-power-contracts/
RURAL power utilities are asking the Energy Regulatory Commission (ERC) to ease their obligations under power contracts entered into with generating companies, while promising to provide consumers relief from bill payments as ordered.
The Philippine Rural Electric Cooperatives Association (Philreca) asked the ERC Wednesday to issue a new advisory allowing electric cooperatives to invoke force majeure clauses in their power supply agreements (PSA).
“As part of our advocacy to provide affordable access to electricity, Philreca asks the indulgence of the Regulators as we appeal again the issue on Prompt Payment Discounts, minimum energy off-take, fix charges, and ‘force majeure’ provisions for the issuance of guidelines or advisory for the benefit of the member-consumer-owners (MCO),” Philreca Executive Director Janeene D. Colingan said in a statement.
A force majeure event is invoked when parties to a contract deem it impossible to fulfill their obligations.
Asked to comment, the ERC said the utilities must first discuss with their partners any changes they would like to make in their agreements, noting the varied impact of the government’s quarantine measures to power utilities.
“The position of the commission is that any modifications to the approved PSA should be discussed by the parties first as we see different impact of the community quarantine to the DUs (distribution utilities),” ERC Spokesperson Floresinda B. Digal told BusinessWorld.
A uniform order on relief for all utilities may not supersede such negotiations, she added.
In April, Manila Electric Co. (Meralco) invoked force majeure in its power contracts, which resulted in the lowering of generation charges in its customers’ May electricity bills.
Philreca warned that higher generation charges will be passed on to customers if the regulator does not allow the removal of such bill components.
“As we have reiterated before, if no intervention is done, paying these fixed charges… will significantly result in a higher generation charge/component in a consumer’s electricity bill,” Ms. Colingan said.
The commission in its May 22 advisory said the availment of prompt payment discounts is subjected to negotiations between utilities and their partners, the benefits from which are required to be shared with customers.
Last week, the ERC told power distributors to allow their customers consuming 200 kilowatt-hours (kWh) or less to settle their unpaid bills from March to May in six installments starting mid-June, while allowing those with below 200 kWh to pay them in four portions.
The regulator warned of penalties against utilities that fail to comply with its advisories on bills payments. — Adam J. Ang
Colmenares sees ‘impasse’ over unpaid power bills, seeks one-month condonation
Published May 27, 2020, 7:44 PM By Ellson Quismorio
https://news.mb.com.ph/2020/05/27/colmenares-sees-impasse-over-unpaid-power-bills-seeks-one-month-condonation/
There could be an impasse over the potential mass non-payment of electric bills during the enhanced community quarantine (ECQ) period, Bayan Muna Chairman Neri Colmenares warned the House energy committee on Wednesday (May 27).
In a virtual hearing by the House panel that was attended by officials from the Manila Electric Company (Meralco), Energy Regulatory Commission (ERC), and electric cooperative groups, Colmenares said Filipinos simply don’t have the means to pay the exorbitant electric bills issued to them during the ECQ period.
“This is the pressing problem: Kahit i-adjust ng Meralco yung billing nila, kahit mangalahati pa yung bill, ang ating mamamayan hindi pa rin kakayaning bayaran yan. Kasi wala silang income talaga in the last two months eh (Even if Meralco adjusts the bill, even if they cut it to half, people still won’t be able to pay for it. Because they didn’t have any income at all for the last two months),” the former House member said.
“Now may impasse tayo dito. Sige, bumaba na ‘yung bills, hindi pa rin mababayaran — malaking kumplikadong problema ito. Kasi hindi mo siya pwedeng i-disconnect ng kuryente kasi that’s a public health threat (Now we’ll have an impasse. Alright, bills are reduced, but they still won’t be paid — this is a big, complicated problem. Because you can’t disconnect their power service because that’s a public health threat),” said Colmenares, who was one of the resource persons.
“In the midst of a pandemic, may hundreds of thousands kang households na mainit, madilim, talagang hirap kang mag-quarantine doon. I’m very worried na hindi mababayaran, kumplikado ‘yan kung maputulan (you have hundreds of thousands of households that are hot, dark, it would be really difficult to quarantine in them. I’m very worried that the bills can’t be paid, and it will further complicate things if power is cut off),” he pointed out.
Presided over by panel chairman, Marinduque lone district Rep. Lord Allan Velasco, Wednesday’s inquiry was an offshoot of the electric bill “shocks” that gripped Meralco consumers and Metro Manila as well as patrons of electric cooperatives in the country during the ECQ months of March and April.
The social media space has been flooded with complaints from consumers regarding their April bill from Meralco, which doubled or even tripled in cost in some cases.
The power distribution giant has since told customers to disregard the April bill, which it came up with using averages instead of proper meter reading. This was due to the restricted movement of people during the quarantine.
Meralco Vice President Victor Genuino told House members that for May, up to 65 percent of households in its service area underwent meter reading. The figure is a 63-percentage point improvement from April, he noted.
One-month condonation
Worried that consumers still won’t be able to pay the forthcoming, more accurate, electricity bill due to the widespread work stoppage during the ECQ, Colmenares suggested a one-month condonation of bills to be shouldered by Meralco, fellow power players, and government.
“So ang proposal, Mr. Chair, ‘yung one-month condonation sana ng kuryente for at least 100 or up to 200 kilowatt hours (kWh) sa lahat ng consumers (So my proposal, Mr. Chair, is to give consumers a one-month condonation of electricity for at least 100 or up to 200 kilowatt hours for all consumers),” he said.
The Bayan Muna chairman said this would translate to a P5.7-billion total subsidy for Meralco’s 6.4 million customers, computed from a 100-kWh month-long consumption at a rate of P8.9 per kWh.
He said Meralco can afford the amount. “That’s just the net core income of Meralco in first quarter of 2020, which was P5.72 billion.”
Colmenares said the power utility company could also tap some P2 billion in unrefunded money to consumers stemming from a corporate income tax case in the 1990s. The money was part of a bigger refundable amount of P30 billion, but ERC Chairperson Agnes Devanadera confirmed in the hearing that the P28 billion has already been accounted for.
“I agree. Chair [Devanadera] should look into this,” Velasco said regarding the potential use of the P2 billion as subsidy.
As for consumers in the countryside who will be unable to pay their electricity bills, Colmenares said the so-called government share in national wealth–a huge chunk of which is the Malampaya fund–could be used by government.
He estimated that of the 14 million customers of electric cooperatives, some 11 million are households. He pegged the needed one-month subsidy at P9.9 billion.
Colmenares said the government share in national wealth under the 2020 National Expenditure Program (NEP) was worth P249 billion. He said the gross amount could now be as high as P275 billion.
“Chicken feed yang P9.9 billion sa fund, pero malaking bagay ‘yan sa mamayan sa probinsya (The P9.9 billion is chicken feed to that fund, but it will mean a lot to the people in the province),” he said.
https://news.mb.com.ph/2020/05/27/colmenares-sees-impasse-over-unpaid-power-bills-seeks-one-month-condonation/
There could be an impasse over the potential mass non-payment of electric bills during the enhanced community quarantine (ECQ) period, Bayan Muna Chairman Neri Colmenares warned the House energy committee on Wednesday (May 27).
In a virtual hearing by the House panel that was attended by officials from the Manila Electric Company (Meralco), Energy Regulatory Commission (ERC), and electric cooperative groups, Colmenares said Filipinos simply don’t have the means to pay the exorbitant electric bills issued to them during the ECQ period.
“This is the pressing problem: Kahit i-adjust ng Meralco yung billing nila, kahit mangalahati pa yung bill, ang ating mamamayan hindi pa rin kakayaning bayaran yan. Kasi wala silang income talaga in the last two months eh (Even if Meralco adjusts the bill, even if they cut it to half, people still won’t be able to pay for it. Because they didn’t have any income at all for the last two months),” the former House member said.
“Now may impasse tayo dito. Sige, bumaba na ‘yung bills, hindi pa rin mababayaran — malaking kumplikadong problema ito. Kasi hindi mo siya pwedeng i-disconnect ng kuryente kasi that’s a public health threat (Now we’ll have an impasse. Alright, bills are reduced, but they still won’t be paid — this is a big, complicated problem. Because you can’t disconnect their power service because that’s a public health threat),” said Colmenares, who was one of the resource persons.
“In the midst of a pandemic, may hundreds of thousands kang households na mainit, madilim, talagang hirap kang mag-quarantine doon. I’m very worried na hindi mababayaran, kumplikado ‘yan kung maputulan (you have hundreds of thousands of households that are hot, dark, it would be really difficult to quarantine in them. I’m very worried that the bills can’t be paid, and it will further complicate things if power is cut off),” he pointed out.
Presided over by panel chairman, Marinduque lone district Rep. Lord Allan Velasco, Wednesday’s inquiry was an offshoot of the electric bill “shocks” that gripped Meralco consumers and Metro Manila as well as patrons of electric cooperatives in the country during the ECQ months of March and April.
The social media space has been flooded with complaints from consumers regarding their April bill from Meralco, which doubled or even tripled in cost in some cases.
The power distribution giant has since told customers to disregard the April bill, which it came up with using averages instead of proper meter reading. This was due to the restricted movement of people during the quarantine.
Meralco Vice President Victor Genuino told House members that for May, up to 65 percent of households in its service area underwent meter reading. The figure is a 63-percentage point improvement from April, he noted.
One-month condonation
Worried that consumers still won’t be able to pay the forthcoming, more accurate, electricity bill due to the widespread work stoppage during the ECQ, Colmenares suggested a one-month condonation of bills to be shouldered by Meralco, fellow power players, and government.
“So ang proposal, Mr. Chair, ‘yung one-month condonation sana ng kuryente for at least 100 or up to 200 kilowatt hours (kWh) sa lahat ng consumers (So my proposal, Mr. Chair, is to give consumers a one-month condonation of electricity for at least 100 or up to 200 kilowatt hours for all consumers),” he said.
The Bayan Muna chairman said this would translate to a P5.7-billion total subsidy for Meralco’s 6.4 million customers, computed from a 100-kWh month-long consumption at a rate of P8.9 per kWh.
He said Meralco can afford the amount. “That’s just the net core income of Meralco in first quarter of 2020, which was P5.72 billion.”
Colmenares said the power utility company could also tap some P2 billion in unrefunded money to consumers stemming from a corporate income tax case in the 1990s. The money was part of a bigger refundable amount of P30 billion, but ERC Chairperson Agnes Devanadera confirmed in the hearing that the P28 billion has already been accounted for.
“I agree. Chair [Devanadera] should look into this,” Velasco said regarding the potential use of the P2 billion as subsidy.
As for consumers in the countryside who will be unable to pay their electricity bills, Colmenares said the so-called government share in national wealth–a huge chunk of which is the Malampaya fund–could be used by government.
He estimated that of the 14 million customers of electric cooperatives, some 11 million are households. He pegged the needed one-month subsidy at P9.9 billion.
Colmenares said the government share in national wealth under the 2020 National Expenditure Program (NEP) was worth P249 billion. He said the gross amount could now be as high as P275 billion.
“Chicken feed yang P9.9 billion sa fund, pero malaking bagay ‘yan sa mamayan sa probinsya (The P9.9 billion is chicken feed to that fund, but it will mean a lot to the people in the province),” he said.
US firm buys FGen stake for ₱7.285 B
Published May 27, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/27/us-firm-buys-fgen-stake-for-%e2%82%b17-285-b/
New York Stock Exchange-listed KKR & Co., Inc. will be acquiring the common shares of First Gen Corporation with a premium at ₱22.50 per share – and to be executed via a tender offer that could fetch maximum proceeds of ₱7.285 billion for the Lopez firm.
American investment firm KKR will be pursuing tender offer via its regional subsidiary Valorous Asia Holdings Pte. Ltd., a corporate vehicle that it incorporated in Singapore in March this year.
In a report filed with the Philippine Stock Exchange (PSE), it was stipulated that Valorous “is making the tender offer to acquire by way of secondary sale from existing shareholders, a minimum of 215,874,870 issued and outstanding common shares representing approximately 6.0% and up to 323,812,305 issued and outstanding com¬mon shares representing a maximum of approximately 9.0% of the total issued and outstanding common shares.”
“The tender offer of ₱22.50 per common share provides existing shareholders an immediate return on their investment at an attractive premium to the company’s current trading price and historic trading prices of the common shares,” KKR said.
A premium of 26.83% has been set to First Gen’s closing price on May 22; then a premium of 35.05% to its 3-month volume weighted average price (VWAP) to May 22; and a premium of 19.23% to First Gen’s 6-month VWAP to May 22.
The tender offer will kick off on May 27 at 9 a.m. and will close on June 24, 2020; with an option for Valorous to “extend the tender offer period with prior approval from the Securities and Exchange Commission.”
The American firm’s financial advisor for this transaction is BDO Capital & Investment Corporation, which has issued a letter “confirming that the bidder (KKR) has made appropriate arrangements for funds to be available to satisfy full payment of the tender offer shares – including related commissions, charges, fees and expenses payable by the bidder in connection with the tender offer.”
https://business.mb.com.ph/2020/05/27/us-firm-buys-fgen-stake-for-%e2%82%b17-285-b/
New York Stock Exchange-listed KKR & Co., Inc. will be acquiring the common shares of First Gen Corporation with a premium at ₱22.50 per share – and to be executed via a tender offer that could fetch maximum proceeds of ₱7.285 billion for the Lopez firm.
American investment firm KKR will be pursuing tender offer via its regional subsidiary Valorous Asia Holdings Pte. Ltd., a corporate vehicle that it incorporated in Singapore in March this year.
In a report filed with the Philippine Stock Exchange (PSE), it was stipulated that Valorous “is making the tender offer to acquire by way of secondary sale from existing shareholders, a minimum of 215,874,870 issued and outstanding common shares representing approximately 6.0% and up to 323,812,305 issued and outstanding com¬mon shares representing a maximum of approximately 9.0% of the total issued and outstanding common shares.”
“The tender offer of ₱22.50 per common share provides existing shareholders an immediate return on their investment at an attractive premium to the company’s current trading price and historic trading prices of the common shares,” KKR said.
A premium of 26.83% has been set to First Gen’s closing price on May 22; then a premium of 35.05% to its 3-month volume weighted average price (VWAP) to May 22; and a premium of 19.23% to First Gen’s 6-month VWAP to May 22.
The tender offer will kick off on May 27 at 9 a.m. and will close on June 24, 2020; with an option for Valorous to “extend the tender offer period with prior approval from the Securities and Exchange Commission.”
The American firm’s financial advisor for this transaction is BDO Capital & Investment Corporation, which has issued a letter “confirming that the bidder (KKR) has made appropriate arrangements for funds to be available to satisfy full payment of the tender offer shares – including related commissions, charges, fees and expenses payable by the bidder in connection with the tender offer.”
Wednesday, May 27, 2020
First Gen seeks trading halt after Valorous tender offer notice
May 27, 2020 | 12:02 am
https://www.bworldonline.com/first-gen-seeks-trading-halt-after-valorous-tender-offer-notice/
FIRST GEN Corp. has asked the stock exchange to suspend the trading of its shares on Tuesday after the Lopez-led energy company disclosed its receipt of a tender offer notice from Valorous Asia Holdings Pte. Ltd.
It told the Philippine Stock Exchange that Valorous notified the company of its intention to conduct a public and voluntary tender offer “subject to satisfaction of certain conditions.”
It said the offer covers First Gen’s common shares representing around 6-9% of its total issued and outstanding shares.
It said it was informed that Valorous intends to file the tender offer report with the Securities and Exchange Commission on May 26, and that the offer is intended to begin on May 27.
First Gen said its request for a one-day trading suspension “is also being made to allow equal dissemination of such information, and protect the stock price.” Its shares previously closed at P17.74 each.
On May 23, Valorous had its ad published in a newspaper informing holders of First Gen’s common shares of its intention to acquire through a tender offer a minimum of about 215.87 million shares and a maximum of around 323.81 million shares.
https://www.bworldonline.com/first-gen-seeks-trading-halt-after-valorous-tender-offer-notice/
FIRST GEN Corp. has asked the stock exchange to suspend the trading of its shares on Tuesday after the Lopez-led energy company disclosed its receipt of a tender offer notice from Valorous Asia Holdings Pte. Ltd.
It told the Philippine Stock Exchange that Valorous notified the company of its intention to conduct a public and voluntary tender offer “subject to satisfaction of certain conditions.”
It said the offer covers First Gen’s common shares representing around 6-9% of its total issued and outstanding shares.
It said it was informed that Valorous intends to file the tender offer report with the Securities and Exchange Commission on May 26, and that the offer is intended to begin on May 27.
First Gen said its request for a one-day trading suspension “is also being made to allow equal dissemination of such information, and protect the stock price.” Its shares previously closed at P17.74 each.
On May 23, Valorous had its ad published in a newspaper informing holders of First Gen’s common shares of its intention to acquire through a tender offer a minimum of about 215.87 million shares and a maximum of around 323.81 million shares.
Meralco targets to install smart meters for 3.3M customers
May 27, 2020 | 12:05 am
https://www.bworldonline.com/meralco-targets-to-install-smart-meters-for-3-3m-customers/
MANILA ELECTRIC Co. (Meralco) plans to install more prepaid electricity meters by the middle of next year to far exceed new installations of postpaid meters as the country’s largest power distribution utility targets 3.3 million of its customers to enjoy the benefits of smart meters, its top official said on Tuesday.
“Meralco has already deployed 102,000 smart meters for its prepaid electricity service and by the first half of 2021 we would have installed a total of 145,000 smart meters, 38,000 more for the PRES or the prepaid electricity service and 5,000 for postpaid,” Meralco President and Chief Executive Officer Ray C. Espinosa told the company’s shareholders during their annual meeting yesterday.
“All of these services provide real-time data for the benefit of the customers,” he said during the event, which was witnessed by stockholders through a live feed from the company’s premises.
Prepaid or smart meters allow electricity consumers to monitor their power consumption as they receive a daily text message of their usage and remaining load value.
Mr. Espinosa said that beyond the mid-2021 target installation, the utility is working with the Energy Regulatory Commission for the approval of 1 million more smart meters. The new meters will be deployed over a period of three years, he said.
“Meralco’s roadmap is actually to have 3.3 million customers on smart meters over the next eight years,” Mr. Espinosa said.
As of last year, Meralco had a total of 6.88 million customers, up 4% from 6.62 million in 2018. Of the customer count, households made up 92%, while commercial and industrial users had a share of 8% and 0.2%, respectively.
Of its 46,871 gigawatt-hour electricity sales last year, 31% were taken up by residential users, while industrial users accounted for 29% and commercial customers by 40%. Of the three, residential customers recorded the biggest growth rate at 8%.
Mr. Espinosa also said during the meeting that Meralco’s energy development unit targets to generate a third of its output from renewable energy.
“We are targeting around 3,000 megawatts (MW) within the next five years, with 1,000 MW allocated entirely to renewable energy projects,” he said.
On Tuesday, shares in Meralco slipped by P2 or 0.72% to close at P274 each.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.
https://www.bworldonline.com/meralco-targets-to-install-smart-meters-for-3-3m-customers/
MANILA ELECTRIC Co. (Meralco) plans to install more prepaid electricity meters by the middle of next year to far exceed new installations of postpaid meters as the country’s largest power distribution utility targets 3.3 million of its customers to enjoy the benefits of smart meters, its top official said on Tuesday.
“Meralco has already deployed 102,000 smart meters for its prepaid electricity service and by the first half of 2021 we would have installed a total of 145,000 smart meters, 38,000 more for the PRES or the prepaid electricity service and 5,000 for postpaid,” Meralco President and Chief Executive Officer Ray C. Espinosa told the company’s shareholders during their annual meeting yesterday.
“All of these services provide real-time data for the benefit of the customers,” he said during the event, which was witnessed by stockholders through a live feed from the company’s premises.
Prepaid or smart meters allow electricity consumers to monitor their power consumption as they receive a daily text message of their usage and remaining load value.
Mr. Espinosa said that beyond the mid-2021 target installation, the utility is working with the Energy Regulatory Commission for the approval of 1 million more smart meters. The new meters will be deployed over a period of three years, he said.
“Meralco’s roadmap is actually to have 3.3 million customers on smart meters over the next eight years,” Mr. Espinosa said.
As of last year, Meralco had a total of 6.88 million customers, up 4% from 6.62 million in 2018. Of the customer count, households made up 92%, while commercial and industrial users had a share of 8% and 0.2%, respectively.
Of its 46,871 gigawatt-hour electricity sales last year, 31% were taken up by residential users, while industrial users accounted for 29% and commercial customers by 40%. Of the three, residential customers recorded the biggest growth rate at 8%.
Mr. Espinosa also said during the meeting that Meralco’s energy development unit targets to generate a third of its output from renewable energy.
“We are targeting around 3,000 megawatts (MW) within the next five years, with 1,000 MW allocated entirely to renewable energy projects,” he said.
On Tuesday, shares in Meralco slipped by P2 or 0.72% to close at P274 each.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.
Meralco sets health protocols for employees in the face of the COVID-19 pandemic
May 26, 2020 | 3:05 pm
https://www.bworldonline.com/meralco-sets-health-protocols-for-employees-in-the-face-of-the-covid-19-pandemic/
In a statement released to media, Meralco said it is important that there are enough personnel to ensure 24/7 service.
Meralco President and CEO Atty. Ray C. Espinosa emphasized that health and safety of employees are of paramount importance, thus instituting strict return-to-office health protocols to keep the threat of COVID-19 at bay within the organization.
For daily health checks, employees are required to declare their whereabouts and health status through the Code Light application available online. This will allow daily health monitoring for any symptoms of COVID-19 through self-declaration by way of the application. Code Light also triggers contact tracing if symptoms are declared or if direct contact with a confirmed COVID-19 case, suspect case or probable case is declared.
A 24/7 COVID-19 Hotline was also set-up to further provide online medical consultation for employees manifesting virus symptoms. The Code Light Application and COVID-19 Hotline are the first lines of defense to ensure that symptoms are thoroughly screened and checked daily by health professionals.
As part of the preparation for the workplace re-entry arrangements in the office buildings, work premises and business centers, several measures were initiated to assure employees of management’s main thrust to provide a safe and secure work environment. Disinfection of offices using Ultraviolet Germicidal Irradiation room sterilizers and disinfectant vaporizing equipment, cleaning and disinfection of air conditioning units (ACU) and air handling units (AHU) were completed. Ultraviolet lamp installation at individual ACUs and AHU cooling coils is currently being undertaken to further improve ventilation and ensure safe indoor air quality in offices. To enhance this further, high efficiency particular air (HEPA) filters and air exchange blowers shall be installed in the heating, ventilation and air conditioning (HVAC) systems.
In addition to these measures aimed at improving air quality, installation of protective barriers, implementation of six feet social distancing, reduction of office density, management of foot traffic, enhanced communication on proper hygiene protocol, and provision of foot mats, temperature scanners and alcohol stations were likewise done. For employees who commute, transportation services were made available to them via additional shuttle services and motor pool vehicles as well as encouragement of carpooling. Depending on the type of external exposure, provision and use of Personal Protective Equipment (PPEs) such as facemasks, face shields, goggles, gloves, and hazmat suits will continuously be carried out.
Work arrangements such as flexible hours, shifting and work-from-home were also adapted according to the work requirements. For those employees and contractors required on-site, a rapid mass testing was implemented in partnership with the Pasig City Health Office to ensure that asymptomatic individuals (those with no symptoms) are screened, detected and isolated to further minimize the spread of the virus. Re-Testing will also be conducted monthly for at least twenty percent of the workforce, with priority given to employees depending on exposure and job risk. Reactive cases under this rapid testing program undergo further verification, as necessary, using an RT-PCR based test. As part of the process, contact tracing is immediately carried out for confirmed cases and adherence to the established protocols is strictly enforced.
For collaboration, online meetings are now the new normal. Group gatherings continue to be discouraged and strict building entry protocols such as temperature and medical screening, as well as hand and shoe sanitation, are in place. Local and foreign travel remains to be discontinued as well as cross-site physical interaction. Training programs have also shifted online for continuous employee development.
All these, as well as other protocols and initiatives, ensure that all Meralco employees as well as customers remain safe and protected at all times in their effort to keep the lights on.
https://www.bworldonline.com/meralco-sets-health-protocols-for-employees-in-the-face-of-the-covid-19-pandemic/
In a statement released to media, Meralco said it is important that there are enough personnel to ensure 24/7 service.
Meralco President and CEO Atty. Ray C. Espinosa emphasized that health and safety of employees are of paramount importance, thus instituting strict return-to-office health protocols to keep the threat of COVID-19 at bay within the organization.
For daily health checks, employees are required to declare their whereabouts and health status through the Code Light application available online. This will allow daily health monitoring for any symptoms of COVID-19 through self-declaration by way of the application. Code Light also triggers contact tracing if symptoms are declared or if direct contact with a confirmed COVID-19 case, suspect case or probable case is declared.
A 24/7 COVID-19 Hotline was also set-up to further provide online medical consultation for employees manifesting virus symptoms. The Code Light Application and COVID-19 Hotline are the first lines of defense to ensure that symptoms are thoroughly screened and checked daily by health professionals.
As part of the preparation for the workplace re-entry arrangements in the office buildings, work premises and business centers, several measures were initiated to assure employees of management’s main thrust to provide a safe and secure work environment. Disinfection of offices using Ultraviolet Germicidal Irradiation room sterilizers and disinfectant vaporizing equipment, cleaning and disinfection of air conditioning units (ACU) and air handling units (AHU) were completed. Ultraviolet lamp installation at individual ACUs and AHU cooling coils is currently being undertaken to further improve ventilation and ensure safe indoor air quality in offices. To enhance this further, high efficiency particular air (HEPA) filters and air exchange blowers shall be installed in the heating, ventilation and air conditioning (HVAC) systems.
In addition to these measures aimed at improving air quality, installation of protective barriers, implementation of six feet social distancing, reduction of office density, management of foot traffic, enhanced communication on proper hygiene protocol, and provision of foot mats, temperature scanners and alcohol stations were likewise done. For employees who commute, transportation services were made available to them via additional shuttle services and motor pool vehicles as well as encouragement of carpooling. Depending on the type of external exposure, provision and use of Personal Protective Equipment (PPEs) such as facemasks, face shields, goggles, gloves, and hazmat suits will continuously be carried out.
Work arrangements such as flexible hours, shifting and work-from-home were also adapted according to the work requirements. For those employees and contractors required on-site, a rapid mass testing was implemented in partnership with the Pasig City Health Office to ensure that asymptomatic individuals (those with no symptoms) are screened, detected and isolated to further minimize the spread of the virus. Re-Testing will also be conducted monthly for at least twenty percent of the workforce, with priority given to employees depending on exposure and job risk. Reactive cases under this rapid testing program undergo further verification, as necessary, using an RT-PCR based test. As part of the process, contact tracing is immediately carried out for confirmed cases and adherence to the established protocols is strictly enforced.
For collaboration, online meetings are now the new normal. Group gatherings continue to be discouraged and strict building entry protocols such as temperature and medical screening, as well as hand and shoe sanitation, are in place. Local and foreign travel remains to be discontinued as well as cross-site physical interaction. Training programs have also shifted online for continuous employee development.
All these, as well as other protocols and initiatives, ensure that all Meralco employees as well as customers remain safe and protected at all times in their effort to keep the lights on.
DoE outlines response code for Covid-19
By Jordeene B. Lagare May 26, 2020
https://www.manilatimes.net/2020/05/26/business/business-top/doe-outlines-response-code-for-covid-19/727315/
THE Department of Energy (DoE) has laid out the response protocol for the Philippine energy sector in the event of a coronavirus disease 2019 (Covid-19) outbreak and other similar infectious diseases.
“It is imperative for the energy industry to observe a strict Covid-19 response protocol. Protecting the occupational health and safety of our employees is central to the unimpeded delivery of energy goods and services. As ‘backliners’ during this pandemic, we must remain healthy to keep providing vital energy to all our frontliners,” Energy Secretary Alfonso Cusi said on Monday.
The protocols and measures outlined in the Administrative Order (AO2020-05-0001), signed by Cusi on May 21, shall cover the following: prevention, detection, isolation, treatment, reintegration, and adopting the “new normal.”
Prevention pertains to disease control or the reduction of disease incidence, prevalence, morbidity, or mortality to a locally acceptable level, resulting from deliberate efforts and continued intervention measures.
Detection is disease surveillance or the ongoing systematic collection, analysis, interpretation and dissemination of outcome-specific data for use in the planning, implementation and evaluation of public health practice.
Isolation refers to the separation of ill or infected persons from others, to prevent the spread of infection or contamination.
Meanwhile, treatment is medical treatment or the management and care of a patient for the purpose of combating disease, injury or disorder.
The DoE, however, said in a statement that restriction on activities is not considered treatment, unless the primary purpose of the restriction is to improve a worker’s condition through conservative care.
Reintegration to the workforce enables employees with clean bills of health to return to the workplace.
Meanwhile, adapting to the new normal is the necessary occupational changes that need to be implemented in the medium term, to ensure the unhampered delivery of energy good and services, while protecting employees in the workplace.
The Task Force on Energy Resiliency (TFER) is responsible for implementing the order, including the alignment of necessary funds and procurement of needed equipment and services, and other necessary needs.
TFER shall also ensure industry players’ compliance to the issuance through the preparation of relevant checklists, daily monitoring toolkits and establishment of a feedback mechanism.
The Energy department and its attached agencies must prepare a public service continuity plan or its equivalent incorporating the Covid-19 response protocol, while industry players are required to incorporate such protocols into their business continuity plan or its equivalent.
According to the agency, the order was promulgated to further provide for a comprehensive virus response code on top of the minimum health standards for the power sector.
Prior to that, the DoE released Department Order 2020-04-0007 that states the agency may issue additional or supplemental guidelines related to the pandemic, and that industries and the private sector are required to comply with the public health standards outlined by the Department of Health and other relevant regulations.
https://www.manilatimes.net/2020/05/26/business/business-top/doe-outlines-response-code-for-covid-19/727315/
THE Department of Energy (DoE) has laid out the response protocol for the Philippine energy sector in the event of a coronavirus disease 2019 (Covid-19) outbreak and other similar infectious diseases.
“It is imperative for the energy industry to observe a strict Covid-19 response protocol. Protecting the occupational health and safety of our employees is central to the unimpeded delivery of energy goods and services. As ‘backliners’ during this pandemic, we must remain healthy to keep providing vital energy to all our frontliners,” Energy Secretary Alfonso Cusi said on Monday.
The protocols and measures outlined in the Administrative Order (AO2020-05-0001), signed by Cusi on May 21, shall cover the following: prevention, detection, isolation, treatment, reintegration, and adopting the “new normal.”
Prevention pertains to disease control or the reduction of disease incidence, prevalence, morbidity, or mortality to a locally acceptable level, resulting from deliberate efforts and continued intervention measures.
Detection is disease surveillance or the ongoing systematic collection, analysis, interpretation and dissemination of outcome-specific data for use in the planning, implementation and evaluation of public health practice.
Isolation refers to the separation of ill or infected persons from others, to prevent the spread of infection or contamination.
Meanwhile, treatment is medical treatment or the management and care of a patient for the purpose of combating disease, injury or disorder.
The DoE, however, said in a statement that restriction on activities is not considered treatment, unless the primary purpose of the restriction is to improve a worker’s condition through conservative care.
Reintegration to the workforce enables employees with clean bills of health to return to the workplace.
Meanwhile, adapting to the new normal is the necessary occupational changes that need to be implemented in the medium term, to ensure the unhampered delivery of energy good and services, while protecting employees in the workplace.
The Task Force on Energy Resiliency (TFER) is responsible for implementing the order, including the alignment of necessary funds and procurement of needed equipment and services, and other necessary needs.
TFER shall also ensure industry players’ compliance to the issuance through the preparation of relevant checklists, daily monitoring toolkits and establishment of a feedback mechanism.
The Energy department and its attached agencies must prepare a public service continuity plan or its equivalent incorporating the Covid-19 response protocol, while industry players are required to incorporate such protocols into their business continuity plan or its equivalent.
According to the agency, the order was promulgated to further provide for a comprehensive virus response code on top of the minimum health standards for the power sector.
Prior to that, the DoE released Department Order 2020-04-0007 that states the agency may issue additional or supplemental guidelines related to the pandemic, and that industries and the private sector are required to comply with the public health standards outlined by the Department of Health and other relevant regulations.
MGen to build diversified power portfolio in 5 years
By Lenie Lectura May 26, 2020
https://businessmirror.com.ph/2020/05/26/mgen-to-build-diversified-power-portfolio-in-5-years/
THE power generating arm of the Manila Electric Co. (Meralco), Meralco PowerGen Corp. (MGen), is planning to build a portfolio of 3,000 megawatts (MW) in five years.
“We are targeting around 3,000 megawatts (MW) within the next five years, with 1,000MW entirely allocated to renewable energy (RE) projects,” said Meralco president Ray Espinosa during the annual meeting of the utility firm held Tuesday morning.
Espinosa said Meralco foresees the need for additional power supply to support the country’s growth moving forward.
“Building Meralco’s power distribution portfolio remains a highly strategic initiative of the company as we seek to add much needed reliable, and efficient power supply to support the Philippines’ growth momentum,” he said.
When sought for details, MGen President Rogelio Singson said 2,000MW of the company’s target will be produced by the San Buenaventura Power Plant Limited Co. (SBPL), Atimonan One Energy, Inc. (A1E) and St. Raphael Power Generation, Inc. (St. Raphael). MGen and partners are behind these power projects.
“SBPL, A1E and San Raphael will be about 2,000 megawatts. RE, I still can’t mention because we are negotiating the sites,” Singson said via SMS.
Commercial operations of the 455MW SBPL in Mauban, Quezon started in October last year. It is the country’s first high efficiency, low emission, supercritical power plant capable of generating up to 3,430GWh per year with much less greenhouse gas emissions.
SBPL is a partnership between MGen, with a 51-percent stake, and New Growth BV, a wholly-owned subsidiary of the Electricity Generating Company of Thailand (EGCO), the first independent power producer in Thailand.
Looking ahead, MGen said it is preparing for the launch and commercial operations of another highly efficient, supercritical power plant–the 2x600MW A1E.
Meanwhile, St. Raphael is a 50-50 partnership between MGen and Consunji-led Semirara Mining and Power Corp.
MGen also plans to develop a two-unit coal power plant each with a capacity of 300 MW in Subic, Zambales. The project will be undertaken by Redondo Peninsula Energy, Inc.
For RE, MGen’s focus is on the development of a portfolio of utility scale solar, wind and hydro power projects to supply Luzon grid and electricity consumers with competitive tariff.
MGen Renewable Energy Inc. recently secured an equity funding amounting to P424 million from Meralco that will be invested in various solar projects.
It has identified two solar power projects in Bulacan and Tarlac. However, these projects experienced a delay in the delivery of the PV panels from China due to the coronavirus disease 2019 pandemic.
https://businessmirror.com.ph/2020/05/26/mgen-to-build-diversified-power-portfolio-in-5-years/
THE power generating arm of the Manila Electric Co. (Meralco), Meralco PowerGen Corp. (MGen), is planning to build a portfolio of 3,000 megawatts (MW) in five years.
“We are targeting around 3,000 megawatts (MW) within the next five years, with 1,000MW entirely allocated to renewable energy (RE) projects,” said Meralco president Ray Espinosa during the annual meeting of the utility firm held Tuesday morning.
Espinosa said Meralco foresees the need for additional power supply to support the country’s growth moving forward.
“Building Meralco’s power distribution portfolio remains a highly strategic initiative of the company as we seek to add much needed reliable, and efficient power supply to support the Philippines’ growth momentum,” he said.
When sought for details, MGen President Rogelio Singson said 2,000MW of the company’s target will be produced by the San Buenaventura Power Plant Limited Co. (SBPL), Atimonan One Energy, Inc. (A1E) and St. Raphael Power Generation, Inc. (St. Raphael). MGen and partners are behind these power projects.
“SBPL, A1E and San Raphael will be about 2,000 megawatts. RE, I still can’t mention because we are negotiating the sites,” Singson said via SMS.
Commercial operations of the 455MW SBPL in Mauban, Quezon started in October last year. It is the country’s first high efficiency, low emission, supercritical power plant capable of generating up to 3,430GWh per year with much less greenhouse gas emissions.
SBPL is a partnership between MGen, with a 51-percent stake, and New Growth BV, a wholly-owned subsidiary of the Electricity Generating Company of Thailand (EGCO), the first independent power producer in Thailand.
Looking ahead, MGen said it is preparing for the launch and commercial operations of another highly efficient, supercritical power plant–the 2x600MW A1E.
Meanwhile, St. Raphael is a 50-50 partnership between MGen and Consunji-led Semirara Mining and Power Corp.
MGen also plans to develop a two-unit coal power plant each with a capacity of 300 MW in Subic, Zambales. The project will be undertaken by Redondo Peninsula Energy, Inc.
For RE, MGen’s focus is on the development of a portfolio of utility scale solar, wind and hydro power projects to supply Luzon grid and electricity consumers with competitive tariff.
MGen Renewable Energy Inc. recently secured an equity funding amounting to P424 million from Meralco that will be invested in various solar projects.
It has identified two solar power projects in Bulacan and Tarlac. However, these projects experienced a delay in the delivery of the PV panels from China due to the coronavirus disease 2019 pandemic.
Solon welcomes ERC order; asks the breaking of Meralco monopoly
May 26, 2020
https://journal.com.ph/specials/business/solon-welcomes-erc-order-asks-breaking-meralco-monopoly
House Deputy Minority leader and Bayan Muna Rep. Carlos Isagani Zarate along with Bayan Muna chairman Neri Colmenares today welcomed the Energy Regulatory Commission's (ERC) order for Meralco to conduct actual meter reading.They also called on the ERC and DOE to break the Meralco monopoly.
“Many of us suffered electric bill shock when we received our electric bills recently. The order of ERC requiring Meralco to conduct actual meter reading before issuing electric bills is certainly welcome. This practically orders Meralco to withdraw their shockingly high bills that led to public protests. This is the result of the continuing vigilance and protest of consumers," said the Bayan Muna chairman
"Meralco should also refund the payments of those who have already paid considering that these were not based on actual meter reading. This is without prejudice to our call for the condonation of one month electricity consumption of consumers of at least 100 Kwh,"he said.
"Should Meralco be found to have committed market power abuse or overcharging we ask that ERC should impose fines or price control on Meralco under Section 1 [f] of the ERC “Guidelines to Govern Imposition of Administrative Sanctions” pursuant to Section 46 of EPIRA. Whatever fines imposed must be paid by Meralco back to ots customers for the damage it has caused on consumers," said Colmenares.
Rep. Zarate meanwhile said that "this is the problem caused by the monopoly of Meralco as over 6.9 million customers are now forced to continue to be under Meralco’s franchise despite the many issues against it through the years."
"Meralco has incurred the public ire on many occasions such has its bill shock in 2013 during the Malampaya shutdown, its collection of billions in Bill Deposit payments from consumers and now this latest “electric bill shock” fiasco, but we are forced to continue having Meralco as our service provider," said the progressive solon.
"This again highlights the problem caused by privatization of the electricity sector under Electric Power Industry Reform Act (EPIRA) instead of government control and ownership of public utilities such as electricity distribution," said the Deputy Minority leader.
"We are challenging the ERC and the Department of Energy (DOE) to begin the process of breaking Meralco's monopoly. More importantly, as this current crisis has shown, there is now an urgent need for the nationalization of the energy sector, including Meralco, so that the public will no longer suffer every time these power oligarchs imposes questionable rates. Congress should make the repeal of EPIRA and the nationalization of the industry as a priority as well," he said.
"We hope, too, for the Supreme Court to already rule on our petition for the implementation of the Retail Competition Open Access or RCOA, which at least allows competition and gives the people the opportunity to choose their distribution utility instead of being tied up with Meralco forever. Pending the repeal of EPIRA and the charting of a new energy framework, at least the people will no longer suffer under the Meralco monopoly but will have a choice and the power to punish Meralco by changing service provider," ended Rep. Zarate.###
https://journal.com.ph/specials/business/solon-welcomes-erc-order-asks-breaking-meralco-monopoly
House Deputy Minority leader and Bayan Muna Rep. Carlos Isagani Zarate along with Bayan Muna chairman Neri Colmenares today welcomed the Energy Regulatory Commission's (ERC) order for Meralco to conduct actual meter reading.They also called on the ERC and DOE to break the Meralco monopoly.
“Many of us suffered electric bill shock when we received our electric bills recently. The order of ERC requiring Meralco to conduct actual meter reading before issuing electric bills is certainly welcome. This practically orders Meralco to withdraw their shockingly high bills that led to public protests. This is the result of the continuing vigilance and protest of consumers," said the Bayan Muna chairman
"Meralco should also refund the payments of those who have already paid considering that these were not based on actual meter reading. This is without prejudice to our call for the condonation of one month electricity consumption of consumers of at least 100 Kwh,"he said.
"Should Meralco be found to have committed market power abuse or overcharging we ask that ERC should impose fines or price control on Meralco under Section 1 [f] of the ERC “Guidelines to Govern Imposition of Administrative Sanctions” pursuant to Section 46 of EPIRA. Whatever fines imposed must be paid by Meralco back to ots customers for the damage it has caused on consumers," said Colmenares.
Rep. Zarate meanwhile said that "this is the problem caused by the monopoly of Meralco as over 6.9 million customers are now forced to continue to be under Meralco’s franchise despite the many issues against it through the years."
"Meralco has incurred the public ire on many occasions such has its bill shock in 2013 during the Malampaya shutdown, its collection of billions in Bill Deposit payments from consumers and now this latest “electric bill shock” fiasco, but we are forced to continue having Meralco as our service provider," said the progressive solon.
"This again highlights the problem caused by privatization of the electricity sector under Electric Power Industry Reform Act (EPIRA) instead of government control and ownership of public utilities such as electricity distribution," said the Deputy Minority leader.
"We are challenging the ERC and the Department of Energy (DOE) to begin the process of breaking Meralco's monopoly. More importantly, as this current crisis has shown, there is now an urgent need for the nationalization of the energy sector, including Meralco, so that the public will no longer suffer every time these power oligarchs imposes questionable rates. Congress should make the repeal of EPIRA and the nationalization of the industry as a priority as well," he said.
"We hope, too, for the Supreme Court to already rule on our petition for the implementation of the Retail Competition Open Access or RCOA, which at least allows competition and gives the people the opportunity to choose their distribution utility instead of being tied up with Meralco forever. Pending the repeal of EPIRA and the charting of a new energy framework, at least the people will no longer suffer under the Meralco monopoly but will have a choice and the power to punish Meralco by changing service provider," ended Rep. Zarate.###
PALECO insists billing formula followed ERC guideline
May 26, 2020 Genn Magdayo and Romar Miranda
https://palawan-news.com/paleco-insists-billing-formula-followed-erc-guideline/
The Palawan Electric Cooperative (PALECO) on Tuesday justified its decision to bill consumers based on their average consumption during the months preceding the lockdown, stating they were just following the guidelines issued by the Energy Regulatory Commission (ERC).
Appearing in separate summons by the City Council and the Provincial Board, PALECO officials said their billing for the months of March to May were guided by the ERC memorandum issued May 6.
The ERC memo provides that a consumer’s billing during the lockdown period of March to May will be the average of their monthly consumption during the preceding months of December 2019 to February 2020.
Maria Lolita Decano, PALECO officer-in-charge, also clarified that a separate ERC memo issued May 22 which provides for actual meter reading applies only to enhanced community quarantine (ECQ) and modified ECQ areas and not for general community quarantine (GCQ) areas like Palawan.
Reacting to allegations that PALECO overbilled many of its consumers, particularly commercial establishments that had reduced electricity consumption during the lockdown, the PALECO officials said they were aware of the problems but committed to resolve them individually.
“Hindi namin sinasadya ang pagkakamali,” Solpico told the City Council.
The coop officials said they will look into the complaints of over billing individually and will apply the actual reading to resolve the problems.
Decano and Solpico also said that no electric disconnection may be enforced even when a consumer fails to meet the payment due by June 3.
Some consumers spoke during the meetings to complain about their raised electric bills.
Marcy Quisay, a 56-year-old fish vendor, said that she was shocked to receive her May 2020 electric bill amounting to more than P5,000 when her regular monthly bill does not exceed P1,000 for only using television and an electric fan at her home.
Rocky Lampa, a 60-year-old employee, shared the same dismay for receiving a bill with a total of P9,357. He also pointed out that even though he may be capable to pay his electric bill, he found certain discrepancies on the way he was charged.
Lampa explained that he has cleared his January and February 2020 electric bills amounting to P1,984 and P1,686, respectively. His March-April consumption amounted to P2,059, with an unpaid bill at P1,672 and a surcharge of P115. Based on PALECO’s most recent bill, he is now being asked to pay P6,357 even though he had already paid his previous electric bills, based on the receipts he presented.
Councilor Elgin Damasco moved for a resolution filing a case against PALECO, and asking ERC to issue another resolution for an “actual meter reading” instead of “estimated costs”.
Palawan board member Ryan Maminta, on the other hand, complained that the billing system was not adequately explained to the consumers.
“Hindi nakita ng mga kababayan natin ‘yon [billing system] at wala ring nangyari sa transparency ng billing pagdating sa kung actual ba o estimated ‘yon. Ibig sabihin ‘yong pinag-usapan dito na akala natin makakatulong ay nagdulot pa ng kalituhan at galit ng mga kababayan natin,” Maminta said.
Cesar Miraflores, PALECO area manager, said that Paleco is set to issue an advisory for an installment billing. However, some of the consumers who are capable of making payments would be accepted.
“We are coming up with the advisory na ilalabas, ‘yong paglalagay sa bill na installment ay hindi lang talaga nahabol. But definitely ay magbibigay kami ng advisory ngayon doon sa mga respective area offices and then doon sa installment ay io-offer namin sa mga consumer na gustong magbayad ng installment,” he said.
Miraflores also clarified that billing for disconnection would not be applicable to March and April except May.
“Ang ating due date for March hanggang July at April ay August and May 29 ay bill for May. I would say na ang billing ng March at April ay hindi masu-subject for disconnection, itong May lang ang may due date,” Miraflores said.
https://palawan-news.com/paleco-insists-billing-formula-followed-erc-guideline/
The Palawan Electric Cooperative (PALECO) on Tuesday justified its decision to bill consumers based on their average consumption during the months preceding the lockdown, stating they were just following the guidelines issued by the Energy Regulatory Commission (ERC).
Appearing in separate summons by the City Council and the Provincial Board, PALECO officials said their billing for the months of March to May were guided by the ERC memorandum issued May 6.
The ERC memo provides that a consumer’s billing during the lockdown period of March to May will be the average of their monthly consumption during the preceding months of December 2019 to February 2020.
Maria Lolita Decano, PALECO officer-in-charge, also clarified that a separate ERC memo issued May 22 which provides for actual meter reading applies only to enhanced community quarantine (ECQ) and modified ECQ areas and not for general community quarantine (GCQ) areas like Palawan.
Reacting to allegations that PALECO overbilled many of its consumers, particularly commercial establishments that had reduced electricity consumption during the lockdown, the PALECO officials said they were aware of the problems but committed to resolve them individually.
“Hindi namin sinasadya ang pagkakamali,” Solpico told the City Council.
The coop officials said they will look into the complaints of over billing individually and will apply the actual reading to resolve the problems.
Decano and Solpico also said that no electric disconnection may be enforced even when a consumer fails to meet the payment due by June 3.
Some consumers spoke during the meetings to complain about their raised electric bills.
Marcy Quisay, a 56-year-old fish vendor, said that she was shocked to receive her May 2020 electric bill amounting to more than P5,000 when her regular monthly bill does not exceed P1,000 for only using television and an electric fan at her home.
Rocky Lampa, a 60-year-old employee, shared the same dismay for receiving a bill with a total of P9,357. He also pointed out that even though he may be capable to pay his electric bill, he found certain discrepancies on the way he was charged.
Lampa explained that he has cleared his January and February 2020 electric bills amounting to P1,984 and P1,686, respectively. His March-April consumption amounted to P2,059, with an unpaid bill at P1,672 and a surcharge of P115. Based on PALECO’s most recent bill, he is now being asked to pay P6,357 even though he had already paid his previous electric bills, based on the receipts he presented.
Councilor Elgin Damasco moved for a resolution filing a case against PALECO, and asking ERC to issue another resolution for an “actual meter reading” instead of “estimated costs”.
Palawan board member Ryan Maminta, on the other hand, complained that the billing system was not adequately explained to the consumers.
“Hindi nakita ng mga kababayan natin ‘yon [billing system] at wala ring nangyari sa transparency ng billing pagdating sa kung actual ba o estimated ‘yon. Ibig sabihin ‘yong pinag-usapan dito na akala natin makakatulong ay nagdulot pa ng kalituhan at galit ng mga kababayan natin,” Maminta said.
Cesar Miraflores, PALECO area manager, said that Paleco is set to issue an advisory for an installment billing. However, some of the consumers who are capable of making payments would be accepted.
“We are coming up with the advisory na ilalabas, ‘yong paglalagay sa bill na installment ay hindi lang talaga nahabol. But definitely ay magbibigay kami ng advisory ngayon doon sa mga respective area offices and then doon sa installment ay io-offer namin sa mga consumer na gustong magbayad ng installment,” he said.
Miraflores also clarified that billing for disconnection would not be applicable to March and April except May.
“Ang ating due date for March hanggang July at April ay August and May 29 ay bill for May. I would say na ang billing ng March at April ay hindi masu-subject for disconnection, itong May lang ang may due date,” Miraflores said.
Tuesday, May 26, 2020
Meralco told: Conduct actual meter readings
By Lenie Lectura May 26, 2020
https://businessmirror.com.ph/2020/05/26/meralco-told-conduct-actual-meter-readings/
The chairman of the House Committee on Energy on Monday urged the Manila Electric Co. (Meralco) to charge its customers based on their actual power consumption.
Marinduque Rep. Lord Allan Velasco also asked the power distributor to assure consumers that they will not face disconnection should they fail to pay bills incurred during this pandemic.
Velasco made the statement following growing complaints on the recent spike in electricity bills that have shocked its customers amid the coronavirus disease 2019 (Covid-19) pandemic gripping the country.
During the recent Joint Congressional Energy Commission (JCEC) hearing, which was co-chaired by Velasco and Senator Sherwin T. Gatchalian, Meralco—the country’s largest distribution utility—was asked to explain the increase in electricity charges and the convenience fee it charges to customers.
“Consumers are really surprised when they see their bills and their huge charge,” said Velasco, who even showed during the hearing a sample of a billing statement from Meralco, which indicated that charges jumped to P30,000 from the average of about P10,000 for two months prior to the pandemic.
Meralco representatives told the power sector primary watchdog that electricity billing was based on the actual consumption from the current meter reading and the “estimated consumption” in March and April, when billings were deferred due to the enhanced community quarantine (ECQ).
When Velasco asked if actual meter readings were done during the entire ECQ, Meralco admitted that for the month of April, it only managed to cover 1 percent of its customers.
He also requested from Meralco to make an assurance that its consumers will not be faced with disconnection should they fail to pay their electricity bills incurred during the ECQ.
To this the utility company said, “We will be very considerate for the benefit of our customers.”
According to Velasco, the utility company should also assure consumers that the necessary adjustment in their bill will be applied, if any, and that they will only pay for electricity that they actually consumed.
The company said some March and all April bills were estimates based on the average daily consumption of customers over the previous three months, following the Distribution Services and Open Access Rules (DSOAR) issued by the ERC. Meralco suspended physical meter reading during the ECQ.
https://businessmirror.com.ph/2020/05/26/meralco-told-conduct-actual-meter-readings/
The chairman of the House Committee on Energy on Monday urged the Manila Electric Co. (Meralco) to charge its customers based on their actual power consumption.
Marinduque Rep. Lord Allan Velasco also asked the power distributor to assure consumers that they will not face disconnection should they fail to pay bills incurred during this pandemic.
Velasco made the statement following growing complaints on the recent spike in electricity bills that have shocked its customers amid the coronavirus disease 2019 (Covid-19) pandemic gripping the country.
During the recent Joint Congressional Energy Commission (JCEC) hearing, which was co-chaired by Velasco and Senator Sherwin T. Gatchalian, Meralco—the country’s largest distribution utility—was asked to explain the increase in electricity charges and the convenience fee it charges to customers.
“Consumers are really surprised when they see their bills and their huge charge,” said Velasco, who even showed during the hearing a sample of a billing statement from Meralco, which indicated that charges jumped to P30,000 from the average of about P10,000 for two months prior to the pandemic.
Meralco representatives told the power sector primary watchdog that electricity billing was based on the actual consumption from the current meter reading and the “estimated consumption” in March and April, when billings were deferred due to the enhanced community quarantine (ECQ).
When Velasco asked if actual meter readings were done during the entire ECQ, Meralco admitted that for the month of April, it only managed to cover 1 percent of its customers.
He also requested from Meralco to make an assurance that its consumers will not be faced with disconnection should they fail to pay their electricity bills incurred during the ECQ.
To this the utility company said, “We will be very considerate for the benefit of our customers.”
According to Velasco, the utility company should also assure consumers that the necessary adjustment in their bill will be applied, if any, and that they will only pay for electricity that they actually consumed.
The company said some March and all April bills were estimates based on the average daily consumption of customers over the previous three months, following the Distribution Services and Open Access Rules (DSOAR) issued by the ERC. Meralco suspended physical meter reading during the ECQ.
MORE Power told to upgrade connectors in Iloilo franchise
By Lenie Lectura May 26, 2020
https://businessmirror.com.ph/2020/05/26/more-power-told-to-upgrade-connectors-in-iloilo-franchise/
Meralco Industrial Engineering Services Corp. (MIESCOR), which has conducted a technical study of Iloilo City’s electric distribution system, has advised More Electric and Power Corp. (MORE Power) to upgrade 9,000 hot spot connectors to prevent system-wide damage to the facility.
MORE Power President and Chief Operating Officer Ruel Castro said this was part of the study undertaken by MIESCOR. He said immediate preventive maintenance work must be carried out.
MIESCOR’s findings also showed that four of the five power substations were found to carry over 90 percent load, a dangerous level that could cause damage to the distribution lines and safety switches as the safe level allowed is between 70 percent and 80 percent load capacity.
“If we will not do anything to fix these substations…one day one of these substations will fail and may cause a bigger problem,” Castro said. “I am sorry to use the term … but the system that we took over is dilapidated.”
MORE Power inherited all the distribution facilities of Panay Electric Co. after it took over the distribution system as the new congressional franchise owner.
MORE Power has rehabilitated 51 distribution transformers, replaced 51 broken electric poles and fixed 97 hotspot connectors since the issuance of its provisional authority by the Energy Regulatory Commission (ERC) in March this year.
The distribution utility firm is spending P1.8 billion to rehabilitate and upgrade Iloilo City’s power distribution system in the next three years.
So far, MORE Power has replaced all switchboards and transformers in all the five substations, almost 400 distribution transformers, thousands of poles, and 15,000 electric meters in all the residences and business establishments in place of the old ones put by PECO.
He also reported that MORE Power has moved to bring down systems loss, or the amount of electricity lost due to inefficient distribution because of faulty lines and equipment, or from pilferage, which used to be 9.03 percent last year.
The ERC has imposed a systems loss cap of 6.5-percent.
A 9 percent systems loss could mean 20,000 illegal connections in Iloilo City, said Castro.
https://businessmirror.com.ph/2020/05/26/more-power-told-to-upgrade-connectors-in-iloilo-franchise/
Meralco Industrial Engineering Services Corp. (MIESCOR), which has conducted a technical study of Iloilo City’s electric distribution system, has advised More Electric and Power Corp. (MORE Power) to upgrade 9,000 hot spot connectors to prevent system-wide damage to the facility.
MORE Power President and Chief Operating Officer Ruel Castro said this was part of the study undertaken by MIESCOR. He said immediate preventive maintenance work must be carried out.
MIESCOR’s findings also showed that four of the five power substations were found to carry over 90 percent load, a dangerous level that could cause damage to the distribution lines and safety switches as the safe level allowed is between 70 percent and 80 percent load capacity.
“If we will not do anything to fix these substations…one day one of these substations will fail and may cause a bigger problem,” Castro said. “I am sorry to use the term … but the system that we took over is dilapidated.”
MORE Power inherited all the distribution facilities of Panay Electric Co. after it took over the distribution system as the new congressional franchise owner.
MORE Power has rehabilitated 51 distribution transformers, replaced 51 broken electric poles and fixed 97 hotspot connectors since the issuance of its provisional authority by the Energy Regulatory Commission (ERC) in March this year.
The distribution utility firm is spending P1.8 billion to rehabilitate and upgrade Iloilo City’s power distribution system in the next three years.
So far, MORE Power has replaced all switchboards and transformers in all the five substations, almost 400 distribution transformers, thousands of poles, and 15,000 electric meters in all the residences and business establishments in place of the old ones put by PECO.
He also reported that MORE Power has moved to bring down systems loss, or the amount of electricity lost due to inefficient distribution because of faulty lines and equipment, or from pilferage, which used to be 9.03 percent last year.
The ERC has imposed a systems loss cap of 6.5-percent.
A 9 percent systems loss could mean 20,000 illegal connections in Iloilo City, said Castro.
It is all about one’s consumption — of electricity, that is
Published May 25, 2020, 11:00 PM By ELINANDO B. CINCO
https://news.mb.com.ph/2020/05/25/it-is-all-about-ones-consumption-of-electricity-that-is/
The ongoing lockdown and modified enhanced community quarantine we are all enduring have been taking their toll on the Filipino people. It truly is an extraordinary, and unfortunate, time we are living in, so it is quite understandable for tensions to run high as we brace for the remaining days of May, 2020.
But slowly, as we step into the New Normal, and as we gradually go back to the “real world,” there may be some hesitance and reluctance when it comes to certain realities. But at the end of the day, we have to come to terms with our responsibilities, one of which is to manage our budget and settle our bills.
Electricity bills have been making the news again, as many customers are getting what is referred to as “bill shock.” But from what I understand, there is a logical explanation as to why there is a possibility that your May power bill will tend to be higher. Again, this is power we have been consuming, so it is only right that we pay for it.
My own power bill was also surprising and difficult to grasp. I actually, badgered Meralco spokesman Joe Zaldarriaga one evening to clarify matters on my own bill. It took a lot of explaining from Joe, but here is how I understood it after a long and tedious debate.
As part of the ECQ period, some March and all April bills were estimated based on the past three months’ average daily consumption.
Apparently, that is what power companies follow as a guide in their operational function due to the absence of the actual reading of the meter (meter readers cannot go out due to the lockdown).
Come to think of it, the three months that were used as basis — December 2019, January, 2020, and February, 2020 — were considered “low consumption” months as these were significantly cooler months compared to the summer months of March, April, and May.
Joe pointed out that “aside from these, the following factors have affected customers’ May bill.”
Increased consumption during ECQ, as everyone is at home. So, appliances are usually switched on most of the time throughout the day with more people using it, especially appliances like fans and air-conditioners.
The latter, which most households would use 6 to 8 hours per day before ECQ, could be on as long as 12 to even 20 hours per day during the ECQ. Also, temperatures are currently at a record high 40 to 50 degrees, leading to higher use of cooling devices.
In summary, the May bill is the total actual kWh consumption from March to May, minus the low estimated consumption of March and April. This total, which is already based on the true and actual readings, is what customers actually see in the May bill.
Grudgingly I agree. Who wants to pay a high bill? Certainly, not me but I actually have no choice because I used the electricity. So there is the painful truth.
Sometimes, that is all we need to hear — an explanation that dissects every piece of information.
But I know many of my readers may still feel they must have not consumed that much. Perhaps the regret is that we were unable to track our consumption. Lessons certainly learned here. Thankfully, I saw on the news that May, April, and March bills will be allowed to be paid in monthly installments, starting next month. This will definitely help consumers in managing and planning their budget for the coming days. This is some relief we can enjoy in the meantime.
But we are in uncertain times, and it is a good thing we have power on. Maybe, we can do our part and be more mindful of the power we consume, and acknowledge our civic duty as responsible citizens to pay for that consumption, for after all just like any product, electricity is a commodity we consume.
https://news.mb.com.ph/2020/05/25/it-is-all-about-ones-consumption-of-electricity-that-is/
The ongoing lockdown and modified enhanced community quarantine we are all enduring have been taking their toll on the Filipino people. It truly is an extraordinary, and unfortunate, time we are living in, so it is quite understandable for tensions to run high as we brace for the remaining days of May, 2020.
But slowly, as we step into the New Normal, and as we gradually go back to the “real world,” there may be some hesitance and reluctance when it comes to certain realities. But at the end of the day, we have to come to terms with our responsibilities, one of which is to manage our budget and settle our bills.
Electricity bills have been making the news again, as many customers are getting what is referred to as “bill shock.” But from what I understand, there is a logical explanation as to why there is a possibility that your May power bill will tend to be higher. Again, this is power we have been consuming, so it is only right that we pay for it.
My own power bill was also surprising and difficult to grasp. I actually, badgered Meralco spokesman Joe Zaldarriaga one evening to clarify matters on my own bill. It took a lot of explaining from Joe, but here is how I understood it after a long and tedious debate.
As part of the ECQ period, some March and all April bills were estimated based on the past three months’ average daily consumption.
Apparently, that is what power companies follow as a guide in their operational function due to the absence of the actual reading of the meter (meter readers cannot go out due to the lockdown).
Come to think of it, the three months that were used as basis — December 2019, January, 2020, and February, 2020 — were considered “low consumption” months as these were significantly cooler months compared to the summer months of March, April, and May.
Joe pointed out that “aside from these, the following factors have affected customers’ May bill.”
Increased consumption during ECQ, as everyone is at home. So, appliances are usually switched on most of the time throughout the day with more people using it, especially appliances like fans and air-conditioners.
The latter, which most households would use 6 to 8 hours per day before ECQ, could be on as long as 12 to even 20 hours per day during the ECQ. Also, temperatures are currently at a record high 40 to 50 degrees, leading to higher use of cooling devices.
In summary, the May bill is the total actual kWh consumption from March to May, minus the low estimated consumption of March and April. This total, which is already based on the true and actual readings, is what customers actually see in the May bill.
Grudgingly I agree. Who wants to pay a high bill? Certainly, not me but I actually have no choice because I used the electricity. So there is the painful truth.
Sometimes, that is all we need to hear — an explanation that dissects every piece of information.
But I know many of my readers may still feel they must have not consumed that much. Perhaps the regret is that we were unable to track our consumption. Lessons certainly learned here. Thankfully, I saw on the news that May, April, and March bills will be allowed to be paid in monthly installments, starting next month. This will definitely help consumers in managing and planning their budget for the coming days. This is some relief we can enjoy in the meantime.
But we are in uncertain times, and it is a good thing we have power on. Maybe, we can do our part and be more mindful of the power we consume, and acknowledge our civic duty as responsible citizens to pay for that consumption, for after all just like any product, electricity is a commodity we consume.
ERC to penalize erring power distributors
Danessa Rivera (The Philippine Star) - May 25, 2020 - 12:00am
https://www.philstar.com/business/2020/05/25/2016233/erc-penalize-erring-power-distributors
MANILA, Philippines — The Energy Regulatory Commission (ERC) will penalize any power industry player found violating its directives while there is a national emergency due to the coronavirus disease 2019 or COVID-19 pandemic.
The ERC issued a stern warning to distribution utilities (DUs) through its associations, the Philippine Electric Plant Owners Association Inc. (PEPOA), Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) and the National Association of General Managers of Electric Cooperative Inc. (NAGMEC).
ERC said their non-compliance with the directives contained in the series of advisories it issued would be dealt with accordingly.
“DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws,” ERC chairperson and CEO Agnes Devanadera said in a statement.
Last week, lawmakers grilled the ERC, along with the Department of Energy (DOE), over consumers’ complaints of “unusually high” electricity bills this month.
Sen. Sherwin Gatchalian, co-chairs the Joint Congressional Energy Commission (JCEC), said the controversy has overshadowed the two agency’s achievements and efforts in ensuring the stability of the country’s power sector and the constant delivery of electricity in every household during the enhanced community quarantine.
Social media platforms and government hotlines were flooded with customer complaints of confusing and high electricity bills during the lockdown.
Both agencies have directed all DUs and retail electricity suppliers (RES) to defer customer electricity bills falling due within the enhanced community quarantine and modified enhanced community quarantine “without interest, penalties, fees and other charges.”
The regulators also ordered them to stagger the payment scheme of electricity bills for up to four months.
Gatchalian has hit Meralco’s confusing billing statement for May, which he pointed out was the root cause of the confusion for many power consumers. He noted that his office has started initial inquiries on whether or not Meralco has taken advantage of the pandemic to the detriment of the Filipino consumers.
Meralco will release new electricity bills indicating the staggered amount and an explanation on how to settle bills, Meralco first vice president and head of customer retail services and corporate communications Victor Genuino said.
This is in compliance with the recent ERC order to separate electricity bills falling within quarantine periods.
While Meralco customers can pay their bills now, Genuino said it would be better for customers to wait for the next bill with clarity and explanation.
https://www.philstar.com/business/2020/05/25/2016233/erc-penalize-erring-power-distributors
MANILA, Philippines — The Energy Regulatory Commission (ERC) will penalize any power industry player found violating its directives while there is a national emergency due to the coronavirus disease 2019 or COVID-19 pandemic.
The ERC issued a stern warning to distribution utilities (DUs) through its associations, the Philippine Electric Plant Owners Association Inc. (PEPOA), Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) and the National Association of General Managers of Electric Cooperative Inc. (NAGMEC).
ERC said their non-compliance with the directives contained in the series of advisories it issued would be dealt with accordingly.
“DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws,” ERC chairperson and CEO Agnes Devanadera said in a statement.
Last week, lawmakers grilled the ERC, along with the Department of Energy (DOE), over consumers’ complaints of “unusually high” electricity bills this month.
Sen. Sherwin Gatchalian, co-chairs the Joint Congressional Energy Commission (JCEC), said the controversy has overshadowed the two agency’s achievements and efforts in ensuring the stability of the country’s power sector and the constant delivery of electricity in every household during the enhanced community quarantine.
Social media platforms and government hotlines were flooded with customer complaints of confusing and high electricity bills during the lockdown.
Both agencies have directed all DUs and retail electricity suppliers (RES) to defer customer electricity bills falling due within the enhanced community quarantine and modified enhanced community quarantine “without interest, penalties, fees and other charges.”
The regulators also ordered them to stagger the payment scheme of electricity bills for up to four months.
Gatchalian has hit Meralco’s confusing billing statement for May, which he pointed out was the root cause of the confusion for many power consumers. He noted that his office has started initial inquiries on whether or not Meralco has taken advantage of the pandemic to the detriment of the Filipino consumers.
Meralco will release new electricity bills indicating the staggered amount and an explanation on how to settle bills, Meralco first vice president and head of customer retail services and corporate communications Victor Genuino said.
This is in compliance with the recent ERC order to separate electricity bills falling within quarantine periods.
While Meralco customers can pay their bills now, Genuino said it would be better for customers to wait for the next bill with clarity and explanation.
ERC warns DUs on non-compliance on ‘payment installment’
Published May 25, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/25/erc-warns-dus-on-non-compliance-on-payment-installment/
The Energy Regulatory Commission (ERC) has sternly warned the distribution utilities that if they will violate regulatory mandates – primarily on the enforcement of payment installments for bills covering the enhanced community quarantine (ECQ) and if they will overbill consumers – they will be meted with fines and penalties.
As stated by ERC Chairperson Agnes T. Devanadera, “DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws.”
Last week, the ERC issued a clear-cut order that the DUs like Manila Electric Company (Meralco) will need to issue new billings that will manifest the mandated installment payments of four months for end-users with consumption of 201 kilowatt-hours (kWhs) and higher; then six months for those with usage of 200 kWh and below. The covered bills will be from March 16 to May 31 or during the ECQ and modified ECQ enforcements in various parts of the country because of the coronavirus pandemic.
Devanadera said three DUs are covered by the ERC order with four and six-month installments. Aside from Meralco, the same directive applies to Visayan Electric Company (VECO) and First Laguna Electric Cooperative, Inc. (FLECO).
For the rest of the privately owned DUs and electric cooperatives (ECs), the stretch of payments will be for four equal monthly installments from June to September this year.
The ERC said it issued the warning on non-compliance to the DUs and ECs in a correspondence it dispatched to them last Friday (May 22) – primarily addressed to the Philippine Electric Plant Owners Association Inc. (PEPOA); Philippine Rural Electric Cooperatives Association Inc. (PHILRECA); and the National Association of General Managers of Electric Cooperatives Inc. (NAGMEC).
The order on installment-payments came forth because of the lockdown enforced by the government from March to May; which then resulted in financial drain for most Filipino families especially those who have been affected on their employment by the plague of the health crisis
“We are noting down and keeping records of all the complaints and keeping records of all the complaints that we have received against DUs’ alleged high billings during the ECQ,” Devanadera stressed.
Taking cue from that, she averred “we are sternly warning them that we will not have second thoughts to penalize those DUs who have been remiss or defiant of our orders.”
The regulatory agency further noted that it issued series of advisories (on various dates) “to all DUs during the ECQ period.”
At the same time, the ERC indicated that it “kept an eye on the activities in the electric power industry and introduced some mitigating initiatives, such as the directive to provide a longer grace period and staggering of electricity bill payment.”
https://business.mb.com.ph/2020/05/25/erc-warns-dus-on-non-compliance-on-payment-installment/
The Energy Regulatory Commission (ERC) has sternly warned the distribution utilities that if they will violate regulatory mandates – primarily on the enforcement of payment installments for bills covering the enhanced community quarantine (ECQ) and if they will overbill consumers – they will be meted with fines and penalties.
As stated by ERC Chairperson Agnes T. Devanadera, “DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws.”
Last week, the ERC issued a clear-cut order that the DUs like Manila Electric Company (Meralco) will need to issue new billings that will manifest the mandated installment payments of four months for end-users with consumption of 201 kilowatt-hours (kWhs) and higher; then six months for those with usage of 200 kWh and below. The covered bills will be from March 16 to May 31 or during the ECQ and modified ECQ enforcements in various parts of the country because of the coronavirus pandemic.
Devanadera said three DUs are covered by the ERC order with four and six-month installments. Aside from Meralco, the same directive applies to Visayan Electric Company (VECO) and First Laguna Electric Cooperative, Inc. (FLECO).
For the rest of the privately owned DUs and electric cooperatives (ECs), the stretch of payments will be for four equal monthly installments from June to September this year.
The ERC said it issued the warning on non-compliance to the DUs and ECs in a correspondence it dispatched to them last Friday (May 22) – primarily addressed to the Philippine Electric Plant Owners Association Inc. (PEPOA); Philippine Rural Electric Cooperatives Association Inc. (PHILRECA); and the National Association of General Managers of Electric Cooperatives Inc. (NAGMEC).
The order on installment-payments came forth because of the lockdown enforced by the government from March to May; which then resulted in financial drain for most Filipino families especially those who have been affected on their employment by the plague of the health crisis
“We are noting down and keeping records of all the complaints and keeping records of all the complaints that we have received against DUs’ alleged high billings during the ECQ,” Devanadera stressed.
Taking cue from that, she averred “we are sternly warning them that we will not have second thoughts to penalize those DUs who have been remiss or defiant of our orders.”
The regulatory agency further noted that it issued series of advisories (on various dates) “to all DUs during the ECQ period.”
At the same time, the ERC indicated that it “kept an eye on the activities in the electric power industry and introduced some mitigating initiatives, such as the directive to provide a longer grace period and staggering of electricity bill payment.”
121 electric co-ops comply with order to help consumers
posted May 25, 2020 at 07:40 pm by Alena
Mae S. Flores
The
Philippine Rural Electric Cooperatives Association Inc. said Monday the 121
electric cooperatives in the country complied with all the directives of
regulators to protect the interests of consumers during the enhanced community
quarantine period.
“PHILRECA,
together with the 121 electric cooperatives operating nationwide, would like to
express its unwavering support to government regulators as well as compliance
with its directives in ensuring the welfare and interest of electricity
consumers,” PHILRECA executive director and general manager Janeene
Depay-Colingan said.
The
Energy Regulatory Commission earlier warned distribution utilities including
PHILRECA members that the non-compliance with the directives of the commission
would be subject to sanctions.
PHILRECA
said ECs were complying with all the advisories and issuances of government
regulatory agencies, including the Department of Energy and the ERC. These
include the directive to provide a grace period for all electricity consumers
to pay their bills falling due within the ECQ period, without interests,
penalties, fees and charges.
It said
consumers were given discretion whether to pay in full or in staggered method
without interests, penalties or the possibility of disconnection of service.
PHILRECA
said that with respect to meter reading, a number of ECs resorted to estimated
billing (average of previous months’ billing) due to mobility restrictions
during the quarantine period.
“ERC has
given instructions to use estimated billing to avoid the possibility of
exposure to COVID-19 in compliance with the Inter-Agency Task Force issuances,”
the group said.
“As of
this billing period, ECs have returned to using actual/physical meter reading
and have started using such readings to their billing statements,” it said.
PHILRECA
confirmed in certain occasions, some consumers raised their concerns on higher
electricity bills during the quarantine period.
The group
said the ECs conducted an information dissemination campaign to explain the
factors contributing to high electricity consumption. Some power coops also
reached out to their respective local government units to explain such
circumstances.
“All ECs
have consumer welfare desks where MCOs can reach out to in the event that they
would be needing any clarification in their billing statements,” PHILRECA said.
The ERC
directed DUs to allow their electricity customers with monthly consumption of
200 kilowatt-hours and below in February a staggered payment of up to six equal
monthly installments for their electricity bills falling due within the ECQ and
modified ECQ periods.
The ECQ
period started on March 15 for the National Capital Region and ended May 15.
NCR transitioned to MECQ on May 16.
The
regulator said the first monthly amortization of the staggered payment should
not be made earlier than June 15, without penalties, interests and other fees.
For
electricity customers with monthly consumption of above 200 kWh in February,
DUs were asked allow a staggered payment of up to four equal monthly
installments for their electricity bills falling due within the ECQ and MECQ
periods.
Lockdown-hit power firms seek relief
May 25, 2020 | 12:33 am
https://www.bworldonline.com/lockdown-hit-power-firms-seek-relief/
THE Philippine power sector is seeking a little breathing space in fulfilling certain obligations in supply contracts, as well as the removal of some charges that are passed on to consumers, as strict quarantine measures negatively impacted its finances.
Both ends of the energy supply chain have been hurting due to lower collections, while continuing to pay some fixed costs to maintain their operations during the enhanced community quarantine (ECQ).
Power producers are appealing to their suppliers to provide them with the same flexibility in payments that it gave distribution utilities (DU) that are purchasing power from their plants. They have also sought a reprieve in loan repayments.
“What we ask is simply any kind of flexibility in our own financial agreements and suppliers, and possible amendments in the market rules to address issues we experienced during this ECQ and issues that we foresee as we slowly transition to the new normal,” Philippine Independent Power Producers Association (PIPPA) Executive Director Anne E. Montelibano said in a presentation before the Joint Congressional Energy Committee hearing last Friday.
“As the effects of COVID-19 (coronavirus disease 2019) and the quarantine differ per area or location, contracts with the generators and the DUs may be adjusted taking into consideration their needs, depending on how the quarantine affected its supply and demand,” she added.
According to PIPPA, they continue to pay their fixed costs despite falling revenues due to the deferment of payments during the quarantine period, as ordered by the Energy Regulatory Commission (ERC).
Ms. Montelibano warned that a prolonged payment delay “will take a toll on their operations,” leading to possible closure or halt in investments for power plants.
“Despite this, our generators adapted and continue to make ends meet in compliance, support, and solidarity with the industry,” she said.
On the distribution side, power utilities in the countryside reported to lawmakers that they have reached out to various agencies, asking them to lift some generation charges, such as contract capacity charges, capital recovery fees (CRF), and minimum energy off-take (MEOT) fees.
The Philippine Rural Electric Cooperatives Association (Philreca) said these charges are still being passed on to consumers despite lower electricity consumption during the quarantine period, resulting in “higher” electricity rates.
“These [charges] will only translate to a higher electricity rate brought about by higher generation charge or component because — even if [there is] lower consumption in electricity — the fixed charges will have to be included and passed on to their [customers] electricity bills,” Philreca Executive Director Janeene D. Colingan said.
The group said only two electric cooperatives (EC) were able to “successfully” secure an adjusted agreement with generation companies regarding these costs.
When asked by Senator Sherwin T. Gatchalian, ERC Chairperson Agnes VST Devanadera explained that the generation costs are under power contracts which can be adjusted on a case-to-case basis and that the commission cannot just issue an advisory on removing these charges.
“Since they are covered by the PSA (power supply agreements), it has to be on a case-to-case basis… We cannot be too fast in issuing [an] automatic advisory on this,” she said.
In an advisory on April 15, ERC reminded distribution utilities “to procure their power requirements in the least cost manner.”
The average collection efficiency of rural utilities went down to 68% in April from 85% in March, based on Philreca’s report.
Marinduque Representative Lord Allan Jay Q. Velasco, chairperson of the House Energy Committee, is considering additional funding for electric cooperatives to aid them financially amid the decline in collections.
“I hope we can put in funding to ECs para matulungan sila (to help them),” the solon said.
The Department of Energy (DoE) reported in the same hearing that while there is a general drop in electricity demand during the quarantine period, there is a marked 40% increase in consumption in residential areas serviced by power utilities. Electricity demand from commercial and industrial sectors remains down.
UTILITIES FACE PENALTIES
In a statement over the weekend, the ERC warned distribution utilities that it will penalize those who will not comply with its advisories on payments of unpaid bills during the ECQ period.
“DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws,” Ms. Devanadera said.
The agency is being “bombarded” with complaints from electricity consumers on alleged increases in their bills in May, especially from Manila Electric Co. (Meralco), the country’s biggest distribution utility.
On Friday, the agency ordered power utilities to allow customers with 200 kilowatt-hours of consumption and below to pay their unpaid bills during both ECQ and modified ECQ periods in six installments starting June 15.
It also tasked DUs to conduct actual meter readings and to issue new billings not later than June 8.
Only Cebu City and Mandaue City are still under ECQ, while Metro Manila, Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales, Angeles City, and Laguna are under the modified ECQ up to the end of May. The rest of the country is under general community quarantine. — Adam J. Ang
https://www.bworldonline.com/lockdown-hit-power-firms-seek-relief/
THE Philippine power sector is seeking a little breathing space in fulfilling certain obligations in supply contracts, as well as the removal of some charges that are passed on to consumers, as strict quarantine measures negatively impacted its finances.
Both ends of the energy supply chain have been hurting due to lower collections, while continuing to pay some fixed costs to maintain their operations during the enhanced community quarantine (ECQ).
Power producers are appealing to their suppliers to provide them with the same flexibility in payments that it gave distribution utilities (DU) that are purchasing power from their plants. They have also sought a reprieve in loan repayments.
“What we ask is simply any kind of flexibility in our own financial agreements and suppliers, and possible amendments in the market rules to address issues we experienced during this ECQ and issues that we foresee as we slowly transition to the new normal,” Philippine Independent Power Producers Association (PIPPA) Executive Director Anne E. Montelibano said in a presentation before the Joint Congressional Energy Committee hearing last Friday.
“As the effects of COVID-19 (coronavirus disease 2019) and the quarantine differ per area or location, contracts with the generators and the DUs may be adjusted taking into consideration their needs, depending on how the quarantine affected its supply and demand,” she added.
According to PIPPA, they continue to pay their fixed costs despite falling revenues due to the deferment of payments during the quarantine period, as ordered by the Energy Regulatory Commission (ERC).
Ms. Montelibano warned that a prolonged payment delay “will take a toll on their operations,” leading to possible closure or halt in investments for power plants.
“Despite this, our generators adapted and continue to make ends meet in compliance, support, and solidarity with the industry,” she said.
On the distribution side, power utilities in the countryside reported to lawmakers that they have reached out to various agencies, asking them to lift some generation charges, such as contract capacity charges, capital recovery fees (CRF), and minimum energy off-take (MEOT) fees.
The Philippine Rural Electric Cooperatives Association (Philreca) said these charges are still being passed on to consumers despite lower electricity consumption during the quarantine period, resulting in “higher” electricity rates.
“These [charges] will only translate to a higher electricity rate brought about by higher generation charge or component because — even if [there is] lower consumption in electricity — the fixed charges will have to be included and passed on to their [customers] electricity bills,” Philreca Executive Director Janeene D. Colingan said.
The group said only two electric cooperatives (EC) were able to “successfully” secure an adjusted agreement with generation companies regarding these costs.
When asked by Senator Sherwin T. Gatchalian, ERC Chairperson Agnes VST Devanadera explained that the generation costs are under power contracts which can be adjusted on a case-to-case basis and that the commission cannot just issue an advisory on removing these charges.
“Since they are covered by the PSA (power supply agreements), it has to be on a case-to-case basis… We cannot be too fast in issuing [an] automatic advisory on this,” she said.
In an advisory on April 15, ERC reminded distribution utilities “to procure their power requirements in the least cost manner.”
The average collection efficiency of rural utilities went down to 68% in April from 85% in March, based on Philreca’s report.
Marinduque Representative Lord Allan Jay Q. Velasco, chairperson of the House Energy Committee, is considering additional funding for electric cooperatives to aid them financially amid the decline in collections.
“I hope we can put in funding to ECs para matulungan sila (to help them),” the solon said.
The Department of Energy (DoE) reported in the same hearing that while there is a general drop in electricity demand during the quarantine period, there is a marked 40% increase in consumption in residential areas serviced by power utilities. Electricity demand from commercial and industrial sectors remains down.
UTILITIES FACE PENALTIES
In a statement over the weekend, the ERC warned distribution utilities that it will penalize those who will not comply with its advisories on payments of unpaid bills during the ECQ period.
“DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws,” Ms. Devanadera said.
The agency is being “bombarded” with complaints from electricity consumers on alleged increases in their bills in May, especially from Manila Electric Co. (Meralco), the country’s biggest distribution utility.
On Friday, the agency ordered power utilities to allow customers with 200 kilowatt-hours of consumption and below to pay their unpaid bills during both ECQ and modified ECQ periods in six installments starting June 15.
It also tasked DUs to conduct actual meter readings and to issue new billings not later than June 8.
Only Cebu City and Mandaue City are still under ECQ, while Metro Manila, Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales, Angeles City, and Laguna are under the modified ECQ up to the end of May. The rest of the country is under general community quarantine. — Adam J. Ang
Competitive power rates for manufacturers eyed
Published May 24, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/24/competitive-power-rates-for-manufacturers-eyed/
The Department of Energy (DOE) will carry out collaborative discussion and planning with the Department of Trade and Industry (DTI) to sort out forward plans on how to bring down electricity rates that could help advance the country’s competitiveness especially on enticing investments in the manufacturing sector when economic recovery flourishes after the coronavirus pandemic.
Energy Secretary Alfonso G. Cusi noted that in the recent economic cluster meeting of the Cabinet, “we agreed that the DOE and DTI are going to meet and discuss how we can make Philippines competitive and become attractive to foreign investors.”
The energy chief added “we are going to talk to DTI, and we are bringing the private sector, to find ways how we can make the Philippines competitive – because we have been asking questions how come Indonesia and Vietnam are turning attractive for those companies that are going to relocate outside China? So we want to be able to participate in that and we want to make the Philippines competitive.”
Electricity rates in the Philippines have incessantly been ranked as either the second or third highest in the Asian region, hence, power-intensive sectors like manufacturing have perpetually avoided the country for investments or for relocation of operations base.
During the Joint Congressional Energy Committee hearing, Senator Juan Edgardo Angara requested for data or studies from the DOE that could help determine on whether the country has been doing well or not in terms of attracting capital flow in the manufacturing sector.
https://business.mb.com.ph/2020/05/24/competitive-power-rates-for-manufacturers-eyed/
The Department of Energy (DOE) will carry out collaborative discussion and planning with the Department of Trade and Industry (DTI) to sort out forward plans on how to bring down electricity rates that could help advance the country’s competitiveness especially on enticing investments in the manufacturing sector when economic recovery flourishes after the coronavirus pandemic.
Energy Secretary Alfonso G. Cusi noted that in the recent economic cluster meeting of the Cabinet, “we agreed that the DOE and DTI are going to meet and discuss how we can make Philippines competitive and become attractive to foreign investors.”
The energy chief added “we are going to talk to DTI, and we are bringing the private sector, to find ways how we can make the Philippines competitive – because we have been asking questions how come Indonesia and Vietnam are turning attractive for those companies that are going to relocate outside China? So we want to be able to participate in that and we want to make the Philippines competitive.”
Electricity rates in the Philippines have incessantly been ranked as either the second or third highest in the Asian region, hence, power-intensive sectors like manufacturing have perpetually avoided the country for investments or for relocation of operations base.
During the Joint Congressional Energy Committee hearing, Senator Juan Edgardo Angara requested for data or studies from the DOE that could help determine on whether the country has been doing well or not in terms of attracting capital flow in the manufacturing sector.
Gatchalian to power firms: Clear confusion over bills
ByJavier J. Ismael May 23, 2020
https://www.manilatimes.net/2020/05/23/news/national/gatchalian-to-power-firms-clear-confusion-over-bills/726544/
SEN. Sherwin Gatchalian pressed the Department of Energy (DoE) and the Energy Regulatory Commission (ERC) to issue a new advisory that would help clear the confusion over exorbitant electricity bills amid numerous complaints from consumers.
During Thursday’s Committee of the Whole hearing, Gatchalian grilled the DoE and ERC over the bill shock this month, saying the controversy had overshadowed the two agencies’ efforts in ensuring the constant delivery of electricity in every household during the enhanced community quarantine (ECQ).
The senator has hit The Manila Electric Co.’s (Meralco) billing statement for May, which he pointed out was the root cause of the confusion. His office has started initial inquiries on whether or not Meralco has taken advantage of the coronavirus disease 2019 pandemic.
In his May 19 statement, the lawmaker reminded Meralco of its obligation to follow the ERC advisories on the proper computation of electricity bills and correct payment dates of bills due within the ECQ period.
The ERC has already issued two advisories deferring payment of electricity bills during the ECQ without interest, penalties, fees and other charges — the April 15 advisory covering the period March 16, 2020 to April 30, 2020 and the May 5 advisory extending the deferment period until May 15, 2020.
Gatchalian also pointed out that the two ERC advisories state that the cumulative amount of electricity bill due within the ECQ shall be amortized in four equal monthly installments, payable in the four succeeding billing months following the end of the ECQ.
The senator said the power sector should have prepared for the modified enhanced community quarantine (MECQ) without leaving consumers confused and displeased.
In response, ERC Chairman Agnes Devanadera informed the Senate that the commission had already instructed Meralco to separate electricity bills falling within the ECQ and MECQ period. Energy Secretary Alfonso Cusi, on the other hand, told the senator that Meralco should detail its computation and explain the excessive billing statement.
https://www.manilatimes.net/2020/05/23/news/national/gatchalian-to-power-firms-clear-confusion-over-bills/726544/
SEN. Sherwin Gatchalian pressed the Department of Energy (DoE) and the Energy Regulatory Commission (ERC) to issue a new advisory that would help clear the confusion over exorbitant electricity bills amid numerous complaints from consumers.
During Thursday’s Committee of the Whole hearing, Gatchalian grilled the DoE and ERC over the bill shock this month, saying the controversy had overshadowed the two agencies’ efforts in ensuring the constant delivery of electricity in every household during the enhanced community quarantine (ECQ).
The senator has hit The Manila Electric Co.’s (Meralco) billing statement for May, which he pointed out was the root cause of the confusion. His office has started initial inquiries on whether or not Meralco has taken advantage of the coronavirus disease 2019 pandemic.
In his May 19 statement, the lawmaker reminded Meralco of its obligation to follow the ERC advisories on the proper computation of electricity bills and correct payment dates of bills due within the ECQ period.
The ERC has already issued two advisories deferring payment of electricity bills during the ECQ without interest, penalties, fees and other charges — the April 15 advisory covering the period March 16, 2020 to April 30, 2020 and the May 5 advisory extending the deferment period until May 15, 2020.
Gatchalian also pointed out that the two ERC advisories state that the cumulative amount of electricity bill due within the ECQ shall be amortized in four equal monthly installments, payable in the four succeeding billing months following the end of the ECQ.
The senator said the power sector should have prepared for the modified enhanced community quarantine (MECQ) without leaving consumers confused and displeased.
In response, ERC Chairman Agnes Devanadera informed the Senate that the commission had already instructed Meralco to separate electricity bills falling within the ECQ and MECQ period. Energy Secretary Alfonso Cusi, on the other hand, told the senator that Meralco should detail its computation and explain the excessive billing statement.
Power firms seek gov’t financial aid
Published May 24, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/24/power-firms-seek-govt-financial-aid/
The country’s power generation companies (GenCos) and distribution utilities (DUs) are seeking financial assistance from the government so they can prevent collapse of operations or bankruptcies as their cash collections are deferred toward year-end because of government enforcements following the coronavirus-linked lockdown in the country.
Energy Secretary Alfonso G. Cusi revealed in a hearing of the Joint Congressional Energy Committee (JCEC), that “our industry players need financial assistance. I have discussed this with our DOF (Department of Finance) Secretary and we are depending on the bankability of the generation companies, distribution companies, the transmission company to help extend credit to our consumers.”
For the DUs of which bill payments have been subdivided into four and six-month installments, their plea is for government to extend interest-free bridge financing with payment terms that could be stretched for one year.
Atty. Ranulfo Ocampo, president of the Philippine Electric Plant Owners Association (PEPOA), told lawmakers that they are asking government “to provide financial assistance of interest free loans to distribution utilities to bridge finance their capital requirements.”
He said “the interest free loans be payable in 12 equal monthly installments starting January 2021 so we can have breathing room at least for the consumers and the distribution sector as we return to new normal period after COVID-19.”
In the case of the GenCos, Atty. Anne Estorco-Montelibano, president and executive director of the Philippine Independent Power Producers Association, Inc. (PIPPA), noted that the industry is now confronted with very perilous chance of financial survival, because their collections had been held up, yet on the contrary, they will need to continuously pay their fuel suppliers and lenders – some of which are foreign entities and could not extend level of flexibility that could match the delay in payments being enforced by the Philippine government.
“In the long run, extended payment flexibilities will take a toll on their operations,” Montelibano said, and “the alternative may be to close shop or to cease investing in new power plants.”
She qualified that while industry players have been prevented from pursuing collections during the more than two months of lockdown or enhanced community quarantine (ECQ) in the country due to the coronavirus pandemic, “there was no pause on the generation companies’ fixed costs in the form of debts, bank loans, insurance, labor, maintenance, fuel taxes and the like.”
And despite that, she narrated that the power generators “adapted and continue to make ends meet in compliance, support and solidarity with the industry.”
The reality being faced by the power firms, according to Montelibano, had been that while “we are complying with the extension of payment and the four-month installment mandated by the ERC (Energy Regulatory Commission) and DOE (Department of Energy)… we have experienced difficulty in our own suppliers and creditors, where some, naturally affected by pandemic, are unwilling to extend payment flexibilities.”
https://business.mb.com.ph/2020/05/24/power-firms-seek-govt-financial-aid/
The country’s power generation companies (GenCos) and distribution utilities (DUs) are seeking financial assistance from the government so they can prevent collapse of operations or bankruptcies as their cash collections are deferred toward year-end because of government enforcements following the coronavirus-linked lockdown in the country.
Energy Secretary Alfonso G. Cusi revealed in a hearing of the Joint Congressional Energy Committee (JCEC), that “our industry players need financial assistance. I have discussed this with our DOF (Department of Finance) Secretary and we are depending on the bankability of the generation companies, distribution companies, the transmission company to help extend credit to our consumers.”
For the DUs of which bill payments have been subdivided into four and six-month installments, their plea is for government to extend interest-free bridge financing with payment terms that could be stretched for one year.
Atty. Ranulfo Ocampo, president of the Philippine Electric Plant Owners Association (PEPOA), told lawmakers that they are asking government “to provide financial assistance of interest free loans to distribution utilities to bridge finance their capital requirements.”
He said “the interest free loans be payable in 12 equal monthly installments starting January 2021 so we can have breathing room at least for the consumers and the distribution sector as we return to new normal period after COVID-19.”
In the case of the GenCos, Atty. Anne Estorco-Montelibano, president and executive director of the Philippine Independent Power Producers Association, Inc. (PIPPA), noted that the industry is now confronted with very perilous chance of financial survival, because their collections had been held up, yet on the contrary, they will need to continuously pay their fuel suppliers and lenders – some of which are foreign entities and could not extend level of flexibility that could match the delay in payments being enforced by the Philippine government.
“In the long run, extended payment flexibilities will take a toll on their operations,” Montelibano said, and “the alternative may be to close shop or to cease investing in new power plants.”
She qualified that while industry players have been prevented from pursuing collections during the more than two months of lockdown or enhanced community quarantine (ECQ) in the country due to the coronavirus pandemic, “there was no pause on the generation companies’ fixed costs in the form of debts, bank loans, insurance, labor, maintenance, fuel taxes and the like.”
And despite that, she narrated that the power generators “adapted and continue to make ends meet in compliance, support and solidarity with the industry.”
The reality being faced by the power firms, according to Montelibano, had been that while “we are complying with the extension of payment and the four-month installment mandated by the ERC (Energy Regulatory Commission) and DOE (Department of Energy)… we have experienced difficulty in our own suppliers and creditors, where some, naturally affected by pandemic, are unwilling to extend payment flexibilities.”
Barbers requests Meralco to slash profit margins
Published May 24, 2020, 6:24 AM By Ellson Quismorio
https://news.mb.com.ph/2020/05/24/barbers-requests-meralco-to-slash-profit-margins/
Surigao del Norte 2nd district Rep. Robert Barbers says there’s a way the Manila Electric Company (Meralco) can prove that it is truly willing to help Filipinos get by these very difficult times.
“If they want to help the country and its people, they should also look into the reduction of their [profit] margins. Ika nga, ‘para sa bayan’ (Like they say, ‘take one for the country’),” Barbers said.
The Mindanao congressman floated this idea as the power distribution giant continues to get clobbered on both traditional and social media for issuing alleged exorbitant electric bills during the Enhanced Community Quarantine (ECQ) period, or from March 15 to May 15. This issue has been aptly dubbed “bill shock.”
Talks about these burdensome bills have yet to die down when Meralco found itself being bashed again, this time over its charging of a P47 convenience fee in paying electricity bills through the Meralco Online app/website.
“I just realized that all this time they’ve been charging fees that may seem minimal and ignorable to the consumers, but in totality will amount to a huge income for Meralco,” said Barbers as he explained how he came up with this suggestion.
“So if there are still useless charges that they pass on to consumers that they can easily forego, then they should tell us already and let it be part of their corporate social responsibility (CSR) efforts,” he said.
To Meralco’s credit, it has already waived the much-panned convenience fee and promised a refund to every customer charged with it. It acknowledged too that the charging of such fee was insensitive given the current COVID-19 pandemic.
As for the alleged questionable electricity bills, Barbers said Meralco “should send a recomputed billing for April since they admitted anyway that it was a lapse on their part.”
Barbers was referring to the utility company’s admission–particularly to House Energy Committee chairman, Marinduque lone district Rep. Lord Allan Velasco–that it hardly carried out actual meter readings during the entire ECQ period. For April, Meralco bared that it only managed to cover one percent of its customers.
“That’s the point. We want Meralco to be transparent in their charges and to conduct actual meter readings so that we can be assured that there is accurate basis for the electricity bill that must be paid by their customers,” Velasco told the Meralco representatives during the Joint Congressional Energy Commission’s (JCEC) hearing last Friday.
In the hearing, the Marinduque solon showed a sample Meralco billing statement which surged to over P30,000 after averaging just P10,000 for two months prior to the pandemic-triggered ECQ.
“Mahirap na nga ang buhay, nagka-COVID pa, tapos may malaki pa silang babayarang kuryente (Life is hard as it is, then we get the COVID crisis, then we get these huge electric bills on top of that), said Velasco, who co-chairs the power sector watchdog with Senator Sherwin Gatchalian.
He called Meralco’s attention for failing to inform the public early of the changes in its billing. He requested that consumers who they fail to pay the electricity bills they incurred during the ECQ won’t be faced with disconnection.
“We will be very considerate for the benefit of our customers,” the utility company said in response.
According to Velasco, Meralco should also assure consumers that the necessary adjustment in their bill will be applied, if any, and that they will only pay for electricity that they actually consumed. “This is the only way Meralco can provide a credible basis for the charges,” he noted.
https://news.mb.com.ph/2020/05/24/barbers-requests-meralco-to-slash-profit-margins/
Surigao del Norte 2nd district Rep. Robert Barbers says there’s a way the Manila Electric Company (Meralco) can prove that it is truly willing to help Filipinos get by these very difficult times.
“If they want to help the country and its people, they should also look into the reduction of their [profit] margins. Ika nga, ‘para sa bayan’ (Like they say, ‘take one for the country’),” Barbers said.
The Mindanao congressman floated this idea as the power distribution giant continues to get clobbered on both traditional and social media for issuing alleged exorbitant electric bills during the Enhanced Community Quarantine (ECQ) period, or from March 15 to May 15. This issue has been aptly dubbed “bill shock.”
Talks about these burdensome bills have yet to die down when Meralco found itself being bashed again, this time over its charging of a P47 convenience fee in paying electricity bills through the Meralco Online app/website.
“I just realized that all this time they’ve been charging fees that may seem minimal and ignorable to the consumers, but in totality will amount to a huge income for Meralco,” said Barbers as he explained how he came up with this suggestion.
“So if there are still useless charges that they pass on to consumers that they can easily forego, then they should tell us already and let it be part of their corporate social responsibility (CSR) efforts,” he said.
To Meralco’s credit, it has already waived the much-panned convenience fee and promised a refund to every customer charged with it. It acknowledged too that the charging of such fee was insensitive given the current COVID-19 pandemic.
As for the alleged questionable electricity bills, Barbers said Meralco “should send a recomputed billing for April since they admitted anyway that it was a lapse on their part.”
Barbers was referring to the utility company’s admission–particularly to House Energy Committee chairman, Marinduque lone district Rep. Lord Allan Velasco–that it hardly carried out actual meter readings during the entire ECQ period. For April, Meralco bared that it only managed to cover one percent of its customers.
“That’s the point. We want Meralco to be transparent in their charges and to conduct actual meter readings so that we can be assured that there is accurate basis for the electricity bill that must be paid by their customers,” Velasco told the Meralco representatives during the Joint Congressional Energy Commission’s (JCEC) hearing last Friday.
In the hearing, the Marinduque solon showed a sample Meralco billing statement which surged to over P30,000 after averaging just P10,000 for two months prior to the pandemic-triggered ECQ.
“Mahirap na nga ang buhay, nagka-COVID pa, tapos may malaki pa silang babayarang kuryente (Life is hard as it is, then we get the COVID crisis, then we get these huge electric bills on top of that), said Velasco, who co-chairs the power sector watchdog with Senator Sherwin Gatchalian.
He called Meralco’s attention for failing to inform the public early of the changes in its billing. He requested that consumers who they fail to pay the electricity bills they incurred during the ECQ won’t be faced with disconnection.
“We will be very considerate for the benefit of our customers,” the utility company said in response.
According to Velasco, Meralco should also assure consumers that the necessary adjustment in their bill will be applied, if any, and that they will only pay for electricity that they actually consumed. “This is the only way Meralco can provide a credible basis for the charges,” he noted.
Extended payment schemes shackle power generators
Danessa Rivera (The Philippine Star) - May 24, 2020 - 12:00am
https://www.philstar.com/business/2020/05/24/2016046/extended-payment-schemes-shackle-power-generators
MANILA, Philippines — The Philippine Independent Power Producers Association Inc. (PIPPA) warned of closure or non-investment in the generating sector if payment schemes are further extended beyond the enhanced community quarantine.
PIPPA said its members have complied with the extension of payment to their clients as ordered by power regulators.
“We are complying with the extension of payment and the four-month installment mandated by the Energy Regulatory Commission (ERC) and the Department of Energy (DOE),” PIPPA president and executive director Anne Montelibano said during the Joint Congressional Energy Commission (JCEC) hearing on Friday.
However, the sector itself has found challenges in getting flexible payment schemes from its creditors and suppliers. These are under generation companies’ fixed costs in the form of debts, bank loans, insurance, labor, maintenance, fuel, taxes, etc.
“While we extend that liberality to our counterparties, we have experienced difficulty in our own suppliers and creditors where some, naturally affected by the pandemic, are unwilling to extend payment flexibilities,” Montelibano said.
“Despite this, our generators adapted and continue to make ends meet in compliance, support, and solidarity with the industry. In the long run however, extended payment flexibilities will take a toll on their operations, otherwise the alternative may be to close shop or to cease investing in new power plants,” she said.
The group is seeking the help of JCEC for some flexibility in its financial agreements with suppliers and creditors.
But while this has yet to be addressed, PIPPA is ensuring its members will continue to comply with regulations and to provide electricity.
“We would like to assure the commission however, that our generators have been pursuing all available and alternative options to ensure uninterrupted service,” Montelibano said.
https://www.philstar.com/business/2020/05/24/2016046/extended-payment-schemes-shackle-power-generators
MANILA, Philippines — The Philippine Independent Power Producers Association Inc. (PIPPA) warned of closure or non-investment in the generating sector if payment schemes are further extended beyond the enhanced community quarantine.
PIPPA said its members have complied with the extension of payment to their clients as ordered by power regulators.
“We are complying with the extension of payment and the four-month installment mandated by the Energy Regulatory Commission (ERC) and the Department of Energy (DOE),” PIPPA president and executive director Anne Montelibano said during the Joint Congressional Energy Commission (JCEC) hearing on Friday.
However, the sector itself has found challenges in getting flexible payment schemes from its creditors and suppliers. These are under generation companies’ fixed costs in the form of debts, bank loans, insurance, labor, maintenance, fuel, taxes, etc.
“While we extend that liberality to our counterparties, we have experienced difficulty in our own suppliers and creditors where some, naturally affected by the pandemic, are unwilling to extend payment flexibilities,” Montelibano said.
“Despite this, our generators adapted and continue to make ends meet in compliance, support, and solidarity with the industry. In the long run however, extended payment flexibilities will take a toll on their operations, otherwise the alternative may be to close shop or to cease investing in new power plants,” she said.
The group is seeking the help of JCEC for some flexibility in its financial agreements with suppliers and creditors.
But while this has yet to be addressed, PIPPA is ensuring its members will continue to comply with regulations and to provide electricity.
“We would like to assure the commission however, that our generators have been pursuing all available and alternative options to ensure uninterrupted service,” Montelibano said.
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