Tuesday, May 26, 2020

ERC issues guidelines on payment of electric bills


Danessa Rivera (The Philippine Star) - May 23, 2020 - 12:00am

MANILA, Philippines — The Energy Regulatory Commission (ERC) has issued new guidelines for staggered payment of electricity consumed within the quarantine period, particularly for households with low consumption.
ERC chair and CEO Agnes Devanadera said the new guidelines are for areas still under modified enhanced community quarantine (MECQ) until May 31. The first payment will be on June 15.
Under the guidelines, the power regulator classified consumers based on their monthly electricity consumption.
The ERC directed distribution utilities to conduct actual meter readings not later than June 8 and then issue new billing to customers, reflecting the actual consumption and the corresponding amount due.
With the new guidelines, power distributor Manila Electric Co. (Meralco) said it will issue new electricity bills in compliance.
“We will comply with the ERC order and will operationalize it bearing in mind and ensuring that our customers will understand their bill. We will support the implementation using various information materials and platforms to make it easy to understand. Rest assured that we only have our customers’ satisfaction and interest in mind as we implement this order,” Meralco spokesman Joe Zaldarriaga said.
Those consuming 200 kilowatt-hours (kwh) and below are now considered lifeliners, Devanadera said, and are allowed staggered payment of up to six monthly installments for their electricity bills falling due within the enhanced community quarantine (ECQ) and MECQ periods.
Meanwhile, those consuming more than 200 kwh a month would be given staggered payment option of up to four equal monthly installments for bills falling under the same period.
“Those consuming 200 kwh and below, these are the people who are the lifeliners. Their bill will be subjected to six months installment. And those who are consuming above 200 kwh as of February, they will be given a reprieve of four months installments,” Devanadera said.
The ERC guidelines also said power distributors should only start billing consumers for electricity bills falling under the quarantine periods by July 15.
“The first monthly amortization to be made not earlier than 15 June 2020, without penalties, interests and other fees,” it said.
Devanadera said informal workers can only go to work by June, when public transportation is made available under loose quarantine rules.
“For the installment option, consumers can pay every 15th of the month starting June,” she said.
“Rules are not much of difference between the ECQ and MECQ. There’s no access to public transportation so informal workers cannot go to work. That’s why those consuming 200 kwh below should be given a different treatment,” the ERC chief said.
The ERC also said electricity bills falling due in June, or after the lockdown periods, should be paid not earlier than June 30, without penalties, interest and other fees.
Meanwhile, the power regulator also continues to suspend the collection of the Universal Charge-Environmental Charge (UC-EC) equivalent to P0.0025 per kwh until further notice, to reduce electricity rates.
The universal charge (UC) is a pass-on rate to consumers, which is also used to finance missionary electrification and the environmental fund.
Metro Manila, which accounts for more than a third of the Philippine economy, as well as Laguna, Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales and Angeles City are now under MECQ.
Only the cities of Cebu and Mandaue in the Visayas remain under ECQ while the rest of the country is under GCQ.

‘Undue stress:’ Lawmakers quiz Meralco on ‘bill shock’ amid pandemic

By: Christia Marie Ramos - 03:23 AM May 23, 2020
https://newsinfo.inquirer.net/1279694/undue-stress-lawmakers-quiz-meralco-on-bill-shock-amid-pandemic-2

MANILA, Philippines — Three lawmakers on Friday quizzed the Manila Electric Co. (Meralco) over the “bill shock” experienced by its customers, pointing out that it has created “undue stress” to Filipinos in the wake of the coronavirus pandemic.

During the Joint Congressional Energy Commission (JCEC) hearing, Senator Sherwin Gatchalian called out Meralco for its supposed “lack of transparency especially in these times of confusion and crisis.”

Before this, Meralco’s First Vice President and Head of Customer Retail Services and Corporate Communications Victor Genuino explained to lawmakers why consumers got billed for either high or low power consumption when they received their May bill.

Meralco has billed customers based on average consumption from December to February because meter reading could not be done in March and April with the entire Luzon placed under ECQ.

Averaging the consumption was upon the order of regulators, who said the difference with actual consumption would be settled in future bills.

According to Genuino, Meraclo partially resumed its meter-reading activities for its commercial and industrial consumers on April 11 and on April 27 for its residential customers.



He noted that the March and April estimated bills were printed and delivered from May 1 to 6 while bills for May have been sent out since May 8.

“Customers with high consumption during ECQ, ang nangyari ho dito, is that the estimated bills (for March and April) are lower than actual consumption with May reading. So yung mga (the) March and April bill na na-estimate natin (that we estimated), underestimated ho ‘yan (that’s underestimated),” Genuino said.

“Ito ho yung may mga bahay na may nakatira hong mga residente natin na nag-work from home at gumamit ho ng mga appliances nang mas matagal at mas mahaba,” he added.

(These involve household whose residents are working from home and are using appliances longer).

For customers whose bills for May reflected low to zero consumption, this means that Meralco may have “overestimated” their power consumption for March and April.

“Yung scenario two naman natin, meron ho tayong mga customers with low or no consumption during ECQ. Ito hong nangyari dito, malamang overestimated naman ang bills nila,” Genuino said.

(The second scenario is we have customers with low or no consumption during ECQ. What happened here, we probably overestimated their power consumption.)

“Itong (ay yung) homes na wala hong nakatirang tao, mga condo na yung mga tao ho ay umuwi at unoccupied yung mga bahay, or mga negosyo na nag-reduce ng operations nila during ECQ,” he added.

(These are homes where there are no occupants, unoccupied condominium units whose owners opted to go home or business establishments which reduced operations during ECQ.)

Genuino said Meralco will be sending out letters to its customers to explain how their respective meters were read.

But Gatchalian said that it should have already been “very clearly” stated in the electricity bill whether a customer’s electricity consumption was overestimated or underestimated.

“Makikita ho niyo dito sa bill dito, wala naman hong nakalagay kung overestimated or underestimated. Lumalabas parang ito lang yung consumption nung May,” the senator said, referring to a sample bill presented during the hearing.

(In this bill, there is no indicator if the power consumption stated in the bill had been overestimated or underestimated. This would look like as if this was the actual consumption for May.)

“So talagang mahihilo ka magkakaroon ka ho talaga ng bill shock and even though Meralco admitted that nagkulang sila, I’d like to reiterate malaki ang pagkukulang pagdating sa transparency,” he added.

(So you will really be confused and you will be shocked and even though Meralco already admitted that there were lapses, I’d like to reiterate that there was a lack of transparency).



“We have to unbundle the exact rates that are being charged to our consumers. Hindi ho ganitong naka-lumpsum (Not lumpsum)…You don’t need to create undue stress to our consumers,” Gatchalian further said.

Marinduque Rep. Lord Allan Velasco, who led the House contingent in the JCEC hearing, also said that Meralco should have been more “proactive” in explaining to its consumers about how they were billed for power use.

“Naga-average nga tayo but all of a sudden biglang nag-spike. I think it is more of yung kakulangan nga sa pag-inform sa public. I think yung pagiging proactive niyo kinulang. I mean if you’re just going to explain it to the public right now after the bill was sent, medyo masakit yon,” he said.

(We computed the average consumption (for the March and April bills) and then there’s a spike (in the May bill). I think the issue is more on not informing the public enough. I think you lacked in being proactive. I mean if you’re just explaining to the public right now after the bill was sent, that would hurt).

“Nagkaka-COVID na nga tayo, (ang) hirap ng buhay tapos biglang dumating yung napakataas na bill e parang sinipa tayo niyan,” he added.

(We’re in the middle of the COVID-19 pandemic, life is hard then comes a high electric bill, this feels like a kick in the guts.)

Velasco also inquired about the meter-reading activities of Meralco in April, which Genuino said was done at a limited capacity.

“Out of your whole franchise, mga ilang percent yung na-meter read (What’s the percetage of the meter you’ve already read)?” the lawmaker asked.

In response, Genuino said: “In April…wala pa pong one percent ang residential po yung nabasahan natin (Less that one percent of our residential consumers).”

“I think you have a lot of explaining to do because yung na-meter read niyo lang (the meter you’ve read) is one percent or less than one percent of your whole franchise. Then you give us this explanation applying to everyone,” Velasco told Genuino.



“You should’ve just attached already the explanation of how you came about with that computation. Marami sa social media naglabas ng kanilang mga saloobin. May mga wala sa condo nila tapos, yung charges nila tumaas parin, so nakakapagtaka talaga (Many are letting out their grievances on social media. They’re not even in their condo unit but their charges are still high, so you start to wonder),” he added.
Smart meters

To prevent such incidents from happening again, Genuino said Meralco is looking to shift to smart metering, adding that the firm “could’ve done better” in informing its consumers.

“Even though nilagay ho namin yung sa bill ads namin na these bills are estimated, we could’ve done better on informing our customers to properly understand their May bill, pero ang nakikita ho namin moving forward are the solution to this is technology, if we have the smart meters po in place, hindi na ho tayo kailangang mag-estimate,” he said.

(Even though we indicated in our ads that these bills are estimated, we could’ve done better on informing our customers to properly understand their May bill, but what I see is that moving forward are the solution to this is technology, if we have the smart meters in place, we don’t need to estimate anymore.)

With smart meters, Genuino said these would expedite meter-reading activities so that Meralco would not have to resort to estimating a customer’s power consumption.

“Hindi na ho tayo kailangan mgpadala ng mga tao para magbasa ng metro because makikita na ho via remote reading lahat ng konsumo ng bawat consumer na nakabitan ho natin,” he said.

(We would not need to send people out to read meters because reading the consumption of our consumers would be done remotely.)

“Learning din ho ito sa (This is also a learning for) Meralco but moving forward if this were to happen again, I think this smart metering solution will be our best defense to avoid a similar circumstance,” he added.

Senator Risa Hontiveros likewise called out the seeming confusion triggered by the spike in May bills.

“It became a very confused situation na nangangailangan ng komplikadong paliwanag which is also stressful to customers…considering this lack of clarity and transparency, can we really blame customer already suffering from loss income during the lockdown?” she asked Genuino.



Genuino then assured that the power firm would ensure that it would “properly communicate as much as (it) can on how the May bill is rendered to customers.”

“We understand the situation that our kababayans are in, we are not blaming them, we know that they’re going (through) a very difficult time,” he said.

To provide relief to consumers amid the health crisis, the Energy Regulatory Commission (ERC) earlier allowed the staggered payment of electricity bills that had fallen due during the ECQ.

The ERC said it would also order a six-month staggered payment of elecrticity bills for “targeted” consumers under the modified enhanced community quarantine (MECQ).

Metro Manila, Laguna and several Luzon provinces been placed under a modified ECQ while Cebu City and Mandaue City will still be under ECQ until May 31.



Latest figures from the DOH showed that there are so far 13,597 confirmed COVID-19 cases in the country. Of the number, 3,092 have recovered while 857 have died.

Meralco should compute bill based on consumption—Velasco

posted May 23, 2020 at 04:25 pm by Manila Standard Digital
https://www.manilastandard.net/index.php/news/top-stories/324381/meralco-should-compute-bill-based-on-consumption-velasco.html

Marinduque Representative Lord Allan Velasco has asked the Manila Electric Co. (Meralco) to charge its customers based on their actual power consumption in light of growing complaints on the recent spike in electricity bills that have shocked Filipinos still grappling with the COVID-19 pandemic.

At the hearing Friday of the Joint Congressional Energy Commission (JCEC), which is co-chaired by Velasco and Sen. Sherwin 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.

“Talagang nagulat ang mga consumers nung makita nila kung gaano kalaki ang bill nila. Mahirap na nga ang buhay, nagka-COVID pa, tapos may malaki pa silang babayarang kuryente,” Velasco said.

The lawmaker presented during the hearing a sample of a billing statement from Meralco, which jumped to over P30,000 despite averaging about P10,000 for two months prior to the pandemic.

Meralco representatives told the commission 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).

But 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.

“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 said.

Velasco called the attention of Meralco for failing to inform the public ahead of the changes in the billing charges of power consumers.

“Meralco has a lot of explaining to do. Explain the details, explain the specifics . . . and the payment terms.”The lawmaker also asked not to disconnect customets 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.

“This is the only way Meralco can provide a credible basis for the charges,” he added.

SNAP remits P4M to RE host communities

By Leander C. Domingo, TMT May 23, 2020
https://www.manilatimes.net/2020/05/23/business/green-business/snap-remits-p4m-to-re-host-communities/726525/

RAMON, Isabela: SN Aboitiz Power-Magat Inc. (SNAP-Magat) has released P4 million in electrification funds (EF) to support communities hosting renewable energy (RE) providers in the provinces of Ifugao, Isabela and Nueva Vizcaya to help them survive the economic shocks from the coronavirus disease 2019 (Covid-19) pandemic.

SNAP President and Chief Executive Officer Joseph Yu said an EF of P418,834.70 for the remaining host local government units in the said provinces also awaits endorsement from the Department of Energy (DoE). |

Yu said that once approved for release, this would bring the total EF for SNAP-Magat host communities to P4.4 million excluding the regional share.

He explained the EF is part of the Energy Regulation (ER) 1-94 program under the DoE providing host communities with a one-centavo share for every kilowatt-hour (P0.01/kWh) of the total electricity sales of a generating company.

Other than the EF, the Development and Livelihood Fund (DLF) and the Reforestation, Watershed Management, Health and Environment Enhancement Fund (Rwmheef) make up the total ER 1-94 fund.

In 2018, DoE amended ER 1-94 so that power generation companies can directly download the fund to their host communities. It also expanded the categories of beneficiaries to include host regions and indigenous peoples groups, as well as designated distribution utilities in charge of the EF component for host beneficiaries.

In 2019, SNAP-Magat signed memorandums of agreement with its host communities to implement the amended ER 1-94.

On April 6, the DoE issued Department Circular (DC) 2020-04-00080 to allow the use of ER 1-94 for Covid-19 response projects and the downloading of the EF to host communities as back-up for DLF and Rwmheef.

These projects include the facilitation of mass testing by providing and constructing facilities, procurement of medical testing kits, emergency subsidy (non-food) or augmentation to existing subsidy programs, access to essential goods such as food and medicine through mobile markets or feeding programs, and protective personal equipment (PPEs) for front liners.

Late last year and early this year, SNAP-Magat remitted about P7.8 million worth of DLF and Rwmheef. These accumulated from Dec. 26, 2017 to Dec. 25, 2019 while amendments to the ER 1-94 guidelines were being developed.

In April, SNAP-Magat also provided food and PPE aid to its Magat host communities worth around P4.8 million from the company’s voluntary corporate social responsibility (CSR) fund.

“We thank the DoE for exploring ways to support the nation’s fight against Covid-19. The newly signed DC backs our commitment to help our host communities in their battle against Covid-19,” Yu said.

He said the SNAP Group is committed to powering positive change in our host communities. “Social responsibility has always been at the core of our operations, and Covid-19 has in no way dented that commitment — it only strengthened it.”

SNAP-Magat is a joint venture between SN Power of Norway and AboitizPower. It owns and operates the 360- to 388-megawatt Magat hydropower plant on the border of Isabela and Ifugao; and the 8.5-MW Maris hydropower facility in Isabela.

Friday, May 22, 2020

Power demand seen to remain flat this year

Danessa Rivera (The Philippine Star) - May 22, 2020 - 12:00am
https://www.philstar.com/business/2020/05/22/2015593/power-demand-seen-remain-flat-year

MANILA, Philippines —The Philippine power demand is projected to remain flat this year, with only the residential sector as the main driver for growth amid the coronavirus disease 2019 or COVID-19 pandemic.

The Department of Energy (DOE) is revising its supply-demand forecast this year and next year as the new normal kicks in.

With power demand heavily affected by the effects of COVID-19, DOE assistant secretary Redentor Delola said the agency expects to miss its growth target this year.

“We expect a big change in demand growth this year. But as we slowly pick up, as we slowly normalize, we’re seeing demand to normalize. But for this year, we’re seeing a huge impact (from the pandemic). In fact, we’re seeing no growth for the year, so we’ll remain at levels that we have at 2019 then by next year, we expect minimal growth,” he said.

DOE said peak demand for the year is seen at 12,285 megawatts (MW) for Luzon, 2,519 MW for Visayas and 2,278 MW for Mindanao.

Last year, Luzon’s actual peak demand reached 11,344 MW.

Among the sector, only the residential segment is expected to register significant growth, even beyond what the DOE projected, Delola said.

“What happened during the pandemic was the residential consumption increased so it cornered a bigger share in the total, but it is still not able to compensate the drop from the industrial and commercial sectors,” he said.

Among the three main islands, Luzon saw the biggest drop in power demand when the enhanced community quarantine was imposed mid-March.

Delola said the residential sector dominated the demand in Visayas and Mindanao, whereas the industrial sector also corners a big chunk of power requirements in Luzon.

“In Visayas and Mindanao, it’s mostly residential driving the demand. In Luzon, historically, it’s around 30 percent residential and 30 percent industrial,” he said.

With the changes in demand profile, the DOE is revising its supply-demand outlook per industry.

“Once we collect all these info we will update the forecast of supply and demand, by then we will know what the movements are individually per industry as we move towards the new normal,” Delola said.

“For now, we have initial outputs but we still have to review it because those are just based on assumptions given by our economic teams. We don’t have the exact data yet from the readings of distribution utilities (DUs),” the DOE official said.

ERC to issue moratorium for ‘lifeliners’

By: Leila B. Salaverria 05:40 AM May 22, 2020
https://business.inquirer.net/297893/erc-to-issue-moratorium-for-lifeliners

The Energy Regulatory Commission (ERC) is set to issue a directive to allow “lifeliners” in areas under the modified enhanced community quarantine (MECQ) to extend payments for their electric bills over six months, ERC chair Agnes Devanadera told senators on Thursday.

Speaking at a Senate hearing, Devanadera said there was little difference between areas under enhanced community quarantine (ECQ) and those under the modified version.

She said lifeliners are customers who consume 200 kilowatt hours of electricity monthly.Devanadera noted that under both ECQ and MECQ, public transportation was disallowed and many daily wage earners still could not return to work.

The ERC earlier allowed the staggered payment of their electric bills that had fallen due during the ECQ. The bills from Manila Electric Co. (Meralco) could now be paid in four monthly installments.

Devanadera said that the new ERC directive, which she would issue “soon,” would cover areas under MECQ and would help the informal sector.

The new directive will continue to allow the four-month staggered payment and will provide additional concessions to targeted beneficiaries, or those with a monthly consumption of 200 kwh, she said.

“Because we think these are those who have no aircon and they only have basic electrical equipment or those are all they have. And so we are extending for this group, we can call them actually the lifeliners now, we are extending the payment for six months,” she said.


Tolentino’s bill

Devanadera commended a proposed law that will institutionalize an installment payment scheme for basic utility bills during a state of calamity. A measure like this is needed now, she said.

Under the Senate bill filed by Sen. Francis Tolentino, there will be a moratorium on the payment of utility bills—electricity, telephone and water—for the duration of the state of calamity.

The bills during this period could be paid in up to three equal monthly installments, without interest.


Other emergencies

Tolentino said the measure would not lead to income loss for utility companies as it was not pushing for nonpayment or abandonment of the charges. The money due to the companies will only be delayed, he said.

Undersecretary Ruth Castelo said the Department of Trade and Industry supported the measure and suggested expanding the payment moratorium to other emergencies such as rebellion, martial law, or state of war.

These also are times when consumers would be unable to settle their bills, she said.

Castelo added that internet and cable services could be included in the utilities covered by the deferred payment scheme.

Lawrence Fernandez, Meralco vice president and head of utility economics, said the company supported the objective of the bill to provide relief to consumers, but power distribution companies would need help as well.


Moratorium for utilities

Fernandez said a moratorium on payments by customers would need to be matched by a moratorium on the payment by distribution utilities of the charges it collected and remitted to other entities.

He said utilities should also be protected from penalties or fees and termination of generation supply or disconnection from the transmission grid arising from the nonpayment during the moratorium.

Those who can pay should still be allowed to pay during the state of calamity as resources would be needed to continue to provide electric service, he said.

The Senate could also consider imposing the moratorium on targeted beneficiaries, he added.

At the House of Representatives, a network of consumer advocates urged lawmakers to investigate Meralco’s “exorbitant fees” during the ECQ.

In a statement, Samahan at Ugnayan ng mga Konsyumer para sa Ikauunlad ng Bayan (Suki) Network said Meralco’s charges “doubled, tripled, even quadrupled during the May billing.”

It called on the House to compel the company “to drop all unnecessary charges on consumers especially at this trying time.”

The average-billing scheme implemented when electric meters could not be read due to restrictions on the movement of people during ECQ gave rise to “unjustifiable bills” after two months of lockdown, the group said.


‘Convenience fee’

Meralco, under pressure from mounting complaints, gave one concession—refunding the P47 “convenience fee” to customers who paid their bills using the Meralco Online payment platform.

Energy Secretary Alfonso Cusi earlier told the power distributor to explain the P47 fee every time customers paid their bills through Meralco Online, which is accessible via a web browser or a mobile app.

In a letter to Cusi on May 20, Meralco president Ray Espinosa explained that the transaction fee goes to a third-party service provider, which charges the use of the payment portal.

He said Meralco, instead of its customers, would pay the P47 fee for transactions made from March 16 to May 15.


‘Refund’

“I sincerely apologize for this lapse,” Espinosa said. “Meralco will shoulder the convenience fee charged during the aforesaid ECQ period and refund to the customers the fees they paid during this period.”

The Suki Network includes the Alliance for Consumer Protection, Bantay Bigas, Bantay Konsyumer, Kuryente at Kalsada, Bayan Muna, Ecuvoice Women, Gabriela, Green Action Network PH, Matuwid na Singil sa Kuryente, No to Jeepney Phaseout Coalition, People Opposed to Warrantless Electricity Rates, Riles, Train Riders Network, TXTPower, United Filipino Consumers and Commuters and Water for the People Network. —WITH A REPORT FROM RONNEL W. DOMINGO

Visayan Electric resumes full operations in GCQ areas

https://www.philstar.com/the-freeman/cebu-news/2020/05/22/2015675/visayan-electric-resumes-full-operations-gcq-areas
Mitchelle L. Palaubsanon (The Freeman) - May 22, 2020 - 12:00am

CEBU, Philippines — The Visayan Electric has resumed its full operations following the transition to General Community Quarantine in most areas within its franchise starting last Wednesday.

"Visayan Electric has made preparations to incorporate the new normal in its operations to protect its employees and its customers and to ensure continued service to the public,” said Engr. Raul C. Lucero, President and Chief Operating Officer in a press statement.

Visayan Electric also announced that disconnection will resume in areas under GCQ starting June 1 for those accounts that have arrears before March 15.

"There will be no disconnection in areas that are still on Enhanced Community Quarantine and Modified Enhanced Community Quarantine," it said.

It said that customers located in GCQ areas with bills that are due before March 15 are encouraged to settle their accounts through any of Visayan Electric’s third party agents or through online partners to avoid disconnection.

It said that bills that are due from March 15 to May 15 are automatically enrolled in a payment arrangement that will be divided into four equal installment payments that are to be settled within four months, starting on the bill that is due in June.

The distribution utility added that it will implement a strict re-entry protocol for its employees and contractors for business resumption in the areas that are on GCQ. Full operations will resume in the contractor-run office in Glajj Building in Lamac, Consolacion.

Strict social distancing will still be followed in the reopened center and the number of people allowed inside the center will also be limited to protect their employees and contractors, as well as the transacting public.

The electric utility company still encourages its customers, however, to stay at home as much as possible and do inquiries about their bills through the Visayan Electric Facebook page and customer service hotline 230-8326.

Bills can also be monitored through MobileAP, the mobile application for Visayan Electric and the other distribution utilities under AboitizPower.

MobileAP can be downloaded from GooglePlay and the AppStore.

Meanwhile, Visayan Electric facilities in the cities of Cebu, Mandaue and Talisay, including its main office along J. Panis Street in Banilad, will continue to operate under a skeleton workforce. Most of the employees will still be working from their respective homes and only those who need to be onsite will be allowed to report to the office.

Visayan Electric is the second largest electric distribution utility in the country. It serves the cities of Cebu, Mandaue, Talisay and Naga, as well as the municipalities of Liloan, Consolacion, Minglanilla and San Fernando. FPL (FREEMAN)

Philex earnings down 50% in Q1

Louise Maureen Simeon (The Philippine Star) - May 22, 2020 - 12:00am
https://www.philstar.com/business/2020/05/22/2015584/philex-earnings-down-50-q1

MANILA, Philippines — Pangilinan-led Philex Mining Corp. reported a net income of P102 million in the first quarter, down 50 percent despite higher revenues and improved world market prices.

In a regulatory filing, Philex said last year’s earnings were inclusive of a one-time non-recurring net gain amounting to P318 million.

Revenues went up 16 percent to P1.71 billion, mainly due to higher tonnage milled, better blended metal grades, favorable realized gold prices. The growth, however, was tempered by copper prices and lower foreign exchange rates.

The Padcal mine milled 1.97 million metric tons of ore, up seven percent.

First quarter gold output was also higher by 35 percent to 14,159 ounces while copper production also increased by 18 percent to 6.74 million pounds.

Total cost and expenses slightly decreased to P1.55 billion amid lower cost of power, materials and supplies usage.

As an export-oriented company, Philex was allowed to remain operational during the enhanced community quarantine with Padcal continuing to function in strict compliance with the applicable government mandated operating guidelines.

The Padcal mine camp was placed on lockdown.

Philex was also affected by the limited disruption in its supply chain during the first two weeks of the implementation of lockdown in Metro Manila and Calabarzon, where most of the firm’s supplies come from.

“The full impact of COVID19 to the medium term and long term business operations is yet to be seen as the pandemic is continuously shaping the new normal for all businesses, including that of Philex,” said Philex president and CEO Eulalio Austin.

PXP Energy reports loss as oil output declines

May 22, 2020 | 12:05 am
https://www.bworldonline.com/pxp-energy-reports-loss-as-oil-output-declines/

PXP Energy Corp. incurred a consolidated net loss of P40.4 million in the first quarter, compared to P7 million it earned in the same period in 2019, as oil revenues fell with output in its Palawan well declining.

In a disclosure to the stock exchange, Thursday, the former Philex Petroleum Corp. reported a 79% drop in overall petroleum revenues to P6.1 million in the January-March period, compared with P29.7 million it recorded in the same quarter last year.

The revenue dive was caused by a 38% decline in output and a 60% decrease in crude oil price in its Galoc oil production under the Department of Energy-awarded Service Contract 14C-1, mirroring the fall in global demand due to the coronavirus disease 2019 (COVID-19) pandemic.

Assets impairment reached P20.2 million in the period due to the “lower-than-expected future returns” in its oil well as an impact of the crash in global crude oil prices.

The oil firm’s subsidiary Pitkin Petroleum Ltd., which owns a 25% equity interest in Peru’s Marina 1X exploration well under Block Z-38 Contract, said the exploration period of the oil block was extended until the end of the year.

KEI (Peru Z-38) Sucursal del Peru of Australian firm Karoon Energy Ltd. holds a 40% stake in the oil prospect located in the Tumbes Basin, while London-based Tullow Oil plc owns the remaining share.

Last February, the consortium plugged and abandoned the well for lack of oil and exhibiting minor gas. However, it is expecting to produce forward plans for the block after evaluating its drilling results.

Meanwhile, the company’s application with The Philodrill Corp. to explore Area 7, a possible oil discovery site located in the Sulu Sea, remains pending with the Department of Energy (DoE). The block is among the pre-determined areas offered by the department under its Philippine Conventional Energy Contracting Program,

On Thursday, shares in PXP Energy fell by 4.82% to close at P5.13 each. — Adam J. Ang

MGen, units donate P1.5m in relief goods

posted May 21, 2020 at 09:50 pm by Manila Standard Business
https://manilastandard.net/business/power-technology/324254/mgen-units-donate-p1-5m-in-relief-goods.html

Meralco PowerGen Corp. and unit San Buenaventura Power Co. Ltd. donated 425 sacks of rice and more than 200 boxes of canned goods worth P1.5 million to aid the Quezon provincial government’s COVID-19 relief efforts amid the extended enhanced community quarantine.

Atimonan One Energy Inc., another subsidiary of MGen, provided personal protective equipment, including six boxes of N95 face masks, 450 pieces of washable face masks, 100 gallons of alcohol and 10 boxes of surgical gloves for the frontliners of Atimonan, Quezon.

A1E employees also donated 19 sacks of rice, while technical partners and contractors extended financial support and distributed food for residents and volunteers manning the checkpoints in the municipality. Unit Redondo Peninsula Energy Inc., another MGen subsidiary, provided hygiene products to residents of Barangay Cawag in Subic, Zambales.

Meralco waives ‘convenience fee’

Published May 21, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/21/meralco-waives-convenience-fee/

Following a correspondence sent by Energy Secretary Alfonso G. Cusi, power utility giant Manila Electric Company (Meralco) announced that it will temporarily waive the ₱47 convenience fee (CF) being paid by consumers when they settle their bills through the company’s online payment app.

The company said it will instead shoulder the CF cost for the bills covering the enhanced community quarantine (ECQ) period of March 16-May 15 and will correspondingly refund the amount paid by its customers when they settled their electricity bills.

In a reply-letter to the energy chief, Meralco President and CEO Ray C. Espinosa explained that payments via the Meralco app “go through a payment gateway operated and maintained by PayMaya, which is linked to the visa and mastercard networks.”

PayMaya then charges Meralco the convenience fee of ₱47 per transaction, which is integrated in the payment that customers of the utility firm will have to settle as additional charge when they would opt to pay their bills via the app.

“No part of the convenience fee goes to Meralco,” Espinosa stressed, as he emphasized that “the charging of a convenience fee by a payment gateway provider like PayMaya is a common commercial practice in the online payment service industry.”

PSALM to borrow ₱43 billion from DBP

Published May 21, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/21/psalm-to-borrow-%e2%82%b143-billion-from-dbp/

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) will be borrowing ₱43 billion from the Development Bank of the Philippines (DBP), which it will use to settle maturing obligations for the rest of the year.

“PSALM has already obtained the approval from the Department of Finance (DOF) to implement the first drawdown from the said loan by June 2020,” the company has noted in a statement to the media.

The government-owned firm said this new round of borrowings would be necessary because its anticipated revenues “will not be sufficient to cover all maturing obligations and operating expenses for the rest of 2020.”

Cash stream for the company are from privatization proceeds, power sales, collections from delinquent and overdue accounts as well as the remaining proceeds to be fetched via the pass-on of universal charge (UC) for stranded debts.

PSALM President and CEO Irene Joy B. Garcia said the company “has been paying its maturing debts and IPP (independent power producer) obligations, including interest and other charges despite the ECQ (enhanced community quarantine) and the deferment of collections from power bills, certain IPPA payments and the universal charge.”

She qualified there had been “serious financial setbacks caused by COVID-19 and the ECQ, but PSALM will not default on any of its maturing obligations.”

The only silver lining that the company was able to latch on recently was the ₱17.7-billion reduction on its remaining financial obligations, as reckoned for the second quarter of this year.

So far, the firm’s outstanding liabilities had been trimmed to ₱404.28 billion as of mid-May this year; and that was from ₱422.01 billion in January.

Thursday, May 21, 2020

Renewable energy should be at the heart of virus recovery plans: IEA

posted May 20, 2020 at 04:00 pm by AFP and Kelly Macnamara
https://manilastandard.net/business/power-technology/324135/renewable-energy-should-be-at-the-heart-of-virus-recovery-plans-iea.html

The International Energy Agency on Wednesday called on governments to put clean energy at the heart of their coronavirus economic recovery plans, as it forecast the first slowdown in new renewable power installations worldwide in two decades.

The IEA warned that lockdown measures—which at their peak affected more than half the world’s population—would have "far-reaching" consequences, as the world grapples with a crisis that has sent energy demand plummeting and threatens a deep economic contraction.

The agency, which had expected 2020 to be a bumper year for green energy, slashed its two-year forecast for growth in renewable capacity by nearly 10 percent.

It cited supply chain disruptions, construction delays, social distancing measures, and financing challenges.

While sectors supplying electricity—solar, wind, and hydropower—would be largely resilient in the crisis, it said, the market for biofuels used mainly in transport would be "radically" altered as global travel is frozen and oil prices plummet.

Many countries have pledged to increase their use of renewables to meet tough climate targets and the IEA urged governments to redouble those efforts as they plan for post-virus economic recovery.

It cautioned that a predicted reduction in global energy-related CO2 emissions of up to 8 percent in 2020 -- the largest contraction since World War II -- was nothing to celebrate.

"Putting emissions into a structural decline needed renewables to grow much faster across all sectors even before the COVID-19 crisis," the report said.

"To regain and exceed the growth rates seen in the years before the pandemic, policy makers need to put clean energy -- including renewables and energy efficiency -- at the centre of recovery efforts."


'Rebound'

In its updated forecast, the IEA said that overall demand for renewables is expected to increase this year, bolstered by their use in the electricity sector, where green energy has accounted for record shares of power going into the grid in some countries.

This is partly down to their priority access to the grid in many markets, and declines in energy demand during lockdowns.

It has also been boosted by record increases in capacity in 2019, which saw 192 GW of new installations connected to the grid -- a 7 percent increase from 2018.

Revising down a prediction made in October, the IEA now expects some 167 GW of renewable capacity to become operational this year -- a decline of 13 percent from 2019 and the first downward trend since 2000.

However, this will still add 6 percent to the global renewable capacity total this year -- more than the combined size of power systems in both North America and Europe—with solar and wind accounting for the vast majority of new installations.

Meanwhile, both the United States and China are expected to boost their renewable capacity this year and next, as firms rush to complete projects before the expiry of government incentives.

The IEA also predicted a "rebound" in 2021, nearing 2019 levels, as most of the projects delayed this year come online.


Opportunity?

Technologies with long lead times—like hydropower and offshore wind—were not expected to see significant impacts from the virus.

But the report said the economic downturn is expected to deal a severe blow to transport biofuels, like ethanol and biodiesel, which are mostly consumed blended with gasoline and diesel.

Total transport biofuel production is expected to contract by 13 percent in 2020.

But the IEA said the crisis opens a window of opportunity in aviation if governments include environmental conditions in bailout packages, noting the 2 percent sustainable aviation fuel requirement in a rescue proposal for Air France-KLM.

Experts said the crisis could provide an opportunity for green energy to permanently take the place of highly polluting fossil fuels like coal.

"We may come out of COVID with emissions going down, since renewables have been able to take more relative space, pushing out some of the worst of fossil fuels," Glen Peters, Research Director, at the Center for International Climate Research told AFP.

Electric co-ops suffer damage worth P170m

posted May 20, 2020 at 08:30 pm by Manila Standard Business
https://manilastandard.net/business/power-technology/324162/electric-co-ops-suffer-damage-worth-p170m.html

The National Electrification Administration on Wednesday estimated the initial cost of damage incurred by electric cooperatives from Typhoon “Ambo” at P170 million.

Based on the reports received by the NEA Disaster Risk Reduction and Management Department, the typhoon caused damage to ECs operating in the provinces of Quezon, Marinduque, Sorsogon, Masbate, Western Samar, Eastern Samar and Northern Samar.

Northern Samar Electric Cooperative Inc. suffered the most with an estimated damage of P72.944 million, followed by Eastern Samar Electric Cooperative Inc. at P55 million, Quezon I Electric Cooperative Inc. at P23.729 million and Samar I Electric Cooperative Inc. at P6.476 million.

Initial cost of damage to Masbate Electric Cooperative Inc. was pegged at P6.379 million; Quezon II Electric Cooperative Inc. at P3.375 million; Sorsogon I Electric Cooperative Inc. at P1.340 million; Marinduque Electric Cooperative Inc. at P614,383; and Samar II Electric Cooperative Inc. at P356,199.

Some coal plants defer shipments due to low power demand

Published May 20, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/20/some-coal-plants-defer-shipments-due-to-low-power-demand/

A number of coal plants in the country have been deferring schedules of their coal deliveries because of declining electricity demand, not exactly a case of logistical obstructions, the Department of Energy (DOE) has noted.

That somehow countered an earlier status report of the Independent Electricity Market Operator of the Philippines (IEMOP), the operator of the Wholesale Electricity Spot Market (WESM), in which it stated that “the restriction of supply from coal plants may be a result of logistical delays in the transportation and delivery delays of coal brought about by the extended enhanced community quarantine.”

The WESM operator further indicated that such scenario among coal plants would require shift in the availability of power plants in the system, which in the process could drive up electricity rates.

The power plant owners and operators are required to declare the state of availability of their capacities in the WESM because of the prevailing must-offer rule; and for them not be to thrown with allegations of capacity withholding which is a form of anti-competitive behavior in the spot market.

Apparently though, there is a mismatch in the pronouncements of the DOE and IEMOP that may warrant scrutiny as to which entity is really giving accurate and reliable facts, because such inconsistency could have implications on the overall operations of the country’s electricity system.

The energy department reiterated “some power facilities are deferring their scheduled coal shipments because of lower power demand, and not because of logistical delays.”

The DOE added that based on the report-submissions of the coal-fed generating plants, “their number of days of full load operation averages at 47 days.” And that the department claimed “is way beyond the 30-day requirement.”

The energy department further noted “out of the 28 coal-fired power plants in the country, 18 have submitted their coal inventories as of April 28, 2020.”

Given the current situation in the power system which is generally straddling on lower demand compared to last year’s summer months, the DOE emphasized it is “continuously processing certificates of compliance for coal importation, even after the announcement of the ECQ.”

To recall, many power companies at the start of the ECQ had raised complaints on snags of their fuel shipments, including securing clearances from the Bureau of Customs (BoC) because of the initial chaos that the lockdown had triggered then.

Nevertheless, that was later resolved and the bottlenecks had been gradually addressed – and processes had turned smoother as the ECQ stretches into several weeks more.

DOE to revise power supply-demand growth forecast

Published May 20, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/20/doe-to-revise-power-supply-demand-growth-forecast/

Given far-reaching downswing in electricity demand in the past two months because of the rigorous lockdowns imposed by the government, the Department of Energy (DOE) indicated that it will be revising the country’s power supply-demand forecasts for the rest of the year.

Energy Secretary Alfonso G. Cusi stated that for the month of May, electricity supply in the biggest power grid of Luzon has already been peaking at 9,000 megawatts, driven mainly by higher temperatures due to the summer season.

That demand level, he said, is anticipated to climb higher to 12,000 megawatts once the modified enhanced community quarantine (ECQ) measures will finally be lifted or eased to less intense level.

“Aside from making sure that we have enough supply, we also see increase in demand when we lift the quarantine,” the energy chief stressed.

Energy Assistant Secretary Redentor Delola said the department is currently collating data that shall serve as the government’s foundation in rewiring supply-demand projections in the power sector.

Nevertheless, he admitted they are still constrained by data flow – especially from the sphere of the distribution utilities (DUs) because most of them have yet to execute actual meter readings on the consumption of their subscribers during the ECQ period from mid-March to May.

At this point, Delola qualified that the most tangible upshot had been the precipitous slide in demand in Luzon grid in the past two months, although consumption was seen shifting a bit to residential end-users as most commercial establishments and industries had been closed during the lockdown period.

“What happened during the pandemic was that: The residential consumption went up, but it was not able to compensate the drop in commercial and industrial sectors’ usage,” the energy official stressed.

The supply-demand cycle in Luzon during the ECQ phase though had not been parallel to the experiences of Visayas and Mindanao grids, with Delola noting that residential consumption had always been traditionally higher in the two other power systems.

Given such developments then, he stressed that updating of data as well as revision in projections would be warranted, hence, concrete figures and solid basis would have to be established for that.

“We’re looking at per industry movement, but we don’t have data yet from the distribution utilities like Meralco (Manila Electric Company) because they have not done meter reading yet during the ECQ,” Delola said.

COVID-19 slows dev’t of new renewable power capacity

By: Ronnel W. Domingo / 05:10 AM May 21, 2020
https://business.inquirer.net/297754/covid-19-slows-devt-of-new-renewable-power-capacity

The pandemic is expected to slash by 13 percent the development of new renewable energy-based power generation capacity at just 167,000 megawatts, and clear government policies are key to ensure a rebound in 2021, according to the International Energy Agency (IEA).

The Paris-based IEA said in a statement the COVID-19 crisis was hurting the industry worldwide but not halting global growth.

Lockdowns and physical distancing measures in response to COVID-19, aside from supply chain disruptions and emerging difficulties in financing, are causing delays in construction activity.

This year’s expected decline will be the first time in 20 years, although growth is expected to resume in 2021 when most of the delayed projects come online.

Also, the expectation of growth is based on the assumption that government policies that are supportive of renewables would continue.

The IEA said renewable power sources have so far showed impressive resilience despite the disruptions and changes caused by the coronavirus pandemic—their share of the power generation mix is increasing in many markets.

In 2021, the agency forecasts that additions in renewable power will rebound to the level reached in 2019. A big push will come from the partial commissioning of two mega hydropower projects in China.

“The resilience of renewa­ble electricity to the impacts of the COVID-19 crisis is good news but cannot be taken for granted,” IEA executive director Fatih Birol said in a statement.

MPIC biogas project receives subsidy from Japan

(The Philippine Star ) - May 21, 2020 - 12:00am
https://www.philstar.com/business/2020/05/21/2015341/mpic-biogas-project-receives-subsidy-japan

MANILA, Philippines — Metro Pacific Investments Corporation (MPIC) has announced that its biogas project with Dole Philippines was recognized as a joint crediting mechanism (JCM) model project and was approved for the maximum subsidy of 50 percent for qualified capital cost of the project from the Ministry of the Environment, Japan (MOEJ).

This is the first eligible biogas project in the Philippines under the JCM.

Registered as “Biogas Power Generation and Fuel Conversion Project in Pineapple Canneries” under the JCM Model Project, the project was qualified and confirmed by the Global Environmental Center Foundation (GEC), following a meticulous validation process, to receive the subsidy for low-carbon projects that can deliver carbon credits for the achievement of Japan’s and partner countries’ greenhouse gas emissions (GHG) emission reduction target.

Itochu Corp. of Japan, through its Manila office, was instrumental in initiating and leading the accreditation process, which was jointly supported by METPower Venture Partners Holdings Inc., (METPower), a wholly owned subsidiary of MPIC.

An agreement was signed in Nov. 2018 between METPower and Dole Philippines for the design, construction and operation of biogas facilities for Dole’s canneries in South Cotabato, Mindanao. The integrated waste-to-energy facilities aim to complement Dole’s existing operation by processing organic fruit waste and harnessing biogas to produce 5.7 MW equivalent of clean renewable energy and reduce GHG emissions by approximately 50,000 tons CO2 equivalent per year from fossil fuel substitute.

METPower CEO Karim Garcia said “the Dole biogas project is a perfect example of a collaborative venture that benefits all stakeholders - Dole, METPower, the governments of Japan and the Philippines, and ultimately, the environment. With this JCM Model Project recognition, we have further validation of the considerable environmental benefit our biogas plants bring in curbing the greenhouse effect and capturing methane emissions for alternative fuel use.”

The JCM Model Project was introduced by Japan in pursuit of global greenhouse gas emissions reduction through promotion of advanced low-carbon technologies, systems and infrastructure.

The program is implemented under a bilateral cooperation between Japan and a partner country like the Philippines and supports the call of the United Nations Framework Convention on Climate Change (UNFCCC) through GHG emission reduction.

METPower is on a steep growth trajectory with two biogas plants under construction and new development projects such as CO2 recovery and organic fertilizer distribution currently under development.

While the coronavirus disease 2019 or COVID-19 pandemic has affected the construction and commissioning of its biogas projects under construction, it is expected that commercial operations of the biogas plants will commence by the first quarter of 2021.

The first tranche of the JCM subsidy was received, with further cash distributions expected from MOEJ in 2021.

This grant comes at an opportune time as it strengthens the company commitment to retain every single employee and sustain operations during this challenging time. This capital will further facilitate METPower’s pursuit and development of environmentally beneficial and sustainable projects in the near future.

ERC asked to order refund of Meralco bills for May

May 21, 2020 | 12:05 am
https://www.bworldonline.com/erc-asked-to-order-refund-of-meralco-bills-for-may/

A CONSUMER group on Wednesday asked the Energy Regulatory Commission (ERC) to ask Manila Electric Co. (Meralco) to return to customers their payments for May bills, as well as to halt its billings during the period of enhanced community quarantine (ECQ).

In a letter, the National Association of Electricity Consumers for Reforms, Inc. (Nasecore) said the listed distribution utility did not comply with the ERC advisory on postponing its electricity billings until after May 30, amortized in four installments in the next four billing months after the ECQ.

“Undoubtedly, Meralco customers who paid their May billings online and at payment centers while the ECQ is still in effect were deprived of the benefits they were entitled to under the ERC Advisories,” it said.

In a message to BusinessWorld on Tuesday, Meralco Vice President and Utility Economics Head Lawrence S. Fernandez said the company “strictly complied with ERC Advisories and relevant regulations.”

Last week, the Philippines’ largest distribution utility explained that the bill shock experienced by customers was due to the increase in electricity charges computed based on the actual electricity consumption in kilowatt-hours (kWh) from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

The ERC on Monday ordered Meralco to explain the basis of its computation of the May billing.

Meanwhile, the group also accused Meralco of “abuse of market power” by supposedly imposing a P47-convenience fee for online bills payments.

The fee, it said, “should have been a subject of an application with the Commission and of a public hearing.”

Responding to this, Meralco Senior Vice President and Legal Head William S. Pamintuan said on Tuesday that the additional fees are not theirs but are “the fees charged by online payment services provider to those using their platform or system to transact online payments for their convenience.”

The Department of Energy in a letter dated May 14 asked the utility to submit its explanation on this matter. — Adam J. Ang

Visayan Electric defers some projects to 2022

Ehda M. Dagooc (The Freeman ) - May 21, 2020 - 12:00am
https://www.philstar.com/the-freeman/cebu-news/2020/05/21/2015464/visayan-electric-defers-some-projects-2022

CEBU, Philippines — Taking into consideration a challenging year 2020, the Visayan Electric Company Inc., is setting aside some projects initially scheduled for implementation this year.

“We will scale down and defer some projects scheduled to be implemented this year,” Visayan Electric president and chief operating officer, Engr. Raul C. Lucero told stakeholders during its Annual Stockholders Meeting conducted via online.

According to Lucero, among the major projects that the company will defer this year, include; Land acquisition of the proposed Lahug and Tayud substations; the additional power transformers for Cebu substation, Subangdaku substation and Mambaling substation.

The Underground Distribution System for SRP and the Naga–Sibonga 69kV line will also have to take a backseat reducing 50 percent of the rural electrification project.

“We will also defer the purchase of 5T Digger truck,” he added.

Just like other companies, Visayan Electric also considered 2020 as the most challenging year, as its type of business is one of the essentials.

About 67 percent of Visayan Electric’s employees are on WFH (work from home) set up, while maintaining skeleton operations in the office.

On the other hand, there are projects that cannot be postponed such as the connection of meters to residential and power customers.

“We will do the maintenance on 9 substations. We will continue the maintenance of Primary and secondary lines. We will purchase tools and equipment needed to do the maintenance works. So most the works we will do this year are maintenance of our Distribution Network,” he further enumerated.

“We have deferred expansion projects to 2022 and 2023,” Lucero added.

Visayan Electric, which is owned and managed by the Aboitiz Power Corporation and Vivant Corporation logged a total of customer-base of 450,087 in 2019, a 2.8 percent increase from 2018.

In 2019, Visayan Electric recorded a net income of P2.26 billion, from P2.07 billion it generated in 2018.

Visayan Electric is the second largest electric utility in the Philippines. It serves the cities of Cebu, Mandaue, Talisay and Naga and the municipalities of Liloan, Consolacion, Minglanilla and San Fernando.