Maniolas

MANILA, Philippines – The Energy Regulatory Commission (ERC) has cleared the construction of a critical substation which would connect incoming power plants in Quezon province with a total capacity of 2,720 megawatts (MW) to the Luzon grid. The power regulator approved the petition of the National Grid Corp. of the Philippines (NGCP) to construct the Pagbilao EHV Substation aimed to address the overloading of the Tayabas 500/230 kv transformers and the fault level issue at Tayabas 230 kv Substation. Estimated to cost P3.6 billion, the facility will connect four incoming new capacities to the Luzon grid, namely the 420-MW Pagbilao Coal-Fired Power Plant (CFPP) expansion, the 500-MW San Buenaventura Power Ltd. Co. (SBPL), the 3×200-MW Energy World Liquefied Natural Gas (LNG) Power Plant and the 1,200-MW Atimonan Coal-Fired Power Plant. ERC chairman and CEO Jose Vicente Salazar said the Pagbilao EHV Substation will be beneficial in terms of ensuring the quality, reliability and integrity of the Luzon Grid. “The approval of the NGCP’s Pagbilao EHV Substation will enable it to adequately serve the needs and demands of generation companies, distribution utilities and suppliers requiring transmission service and ancillary services through the transmission system,” he said. The ERC said the project shall be subject to optimization based on its actual need and/or implementation under the performance based rate (PBR) system to determine the extent of the value that will be included in the rate base of NGCP. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The power regulator also directed Read More …

(Conclusion) MANILA, Philippines – In fact, just last May, a watershed event in the energy world happened quite inauspiciously in Dubai when, at an open tender of DEWA (Dubai Electricity and Water Authority) for 800 MW of solar capacity, the winning bid came in at $0.03/kwh. The bidding results were so close the next best bidders came in at $0.0369, $0.0396, $0.0444, and $0.0448. These results surpassed a previous 200 MW solar PV award of DEWA just 18 months earlier of $0.0565, and even that of their coal-fired plant bidding in Oct 2015 of $0.0451. Solar PV, with the right conditions, is already beating coal-fired power in some parts of the world. In other Middle East countries like Oman, solar energy is already used to pump up oil from their fields, replacing natural gas. A new energy paradigm is unfolding fast because consumers are responding to the needs of the planet and technology is riding huge cost and experience curves that are rapidly improving their economics. The Philippines has a golden opportunity to leapfrog into this new paradigm and build an energy infrastructure that’s future-ready. To do this it’s critical we craft a credible glide path that keeps power reliable, available, and affordable. How do we do this? Let’s first take stock of where we are. The EPIRA and the privatization of our power industry effectively ended the era of subsidized power in the Philippines. What this means is that our power costs look high relative to other countries that Read More …

MANILA, Philippines – Pilipinas Shell Petroleum Corp. reported a net income of P5.07 billion in the first half of the year, up 28 percent from the same period in 2015. However, sales fell to P71.7 billion from P88.37 billion largely due to lower product prices, documents submitted to the Securities and Exchange Commission showed. Last year, Shell posted a net income of P3.6 billion, a marked turnaround from two consecutive years of losses (P8.5 billion in 2014 and P912 million in 2013) due to  improvement in refining margins and lower inventory losses. Sales also declined to P168.8 billion. Aside from improving finances, Shell said its gearing ratio – a measure of a company’s financial leverage – has also improved to 32 percent as of the end of the first quarter. “With a recently completed rights issue in 2015, the company believes it has low gearing and a well capitalized balance sheet that positions it for growth opportunities,” Shell said. Last year, Shell raised P17.9 billion from a rights offering, effectively boosting its capital, which is necessary for its planned initial public offering. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 After almost 18 years, Shell is pursuing its long-delayed IPO, seeking to raise about P29.7 billion from the sale of of 330 million shares. The offering includes an over allotment of up to 30 million shares, which will be sold for a maximum P90 per share. Industry sources said Shell is hoping to do the IPO before its country Read More …

The Bureau of Internal Revenue is the government’s main revenue agency. Philstar.com/File photo MANILA, Philippines – Only about two months in office, Bureau of Internal Revenue (BIR) Commissioner Caesar Dulay has gone on leave for medical reasons. This was bared during House ways and means committee heating on pending tax reform bills on Tuesday. “May I ask where is the commissioner?” said Nueva Ecija Rep. Estrelita Suansing. To which, BIR Deputy Commissioner Nestor Valeroso replied: “He is currently on medical leave but we understand he will return by the end of the month.” “He underwent an operation but he is already recuperating,” he added. Suansing called the committee’s attention on Dulay’s apparent persistent absence on congressional hearings. Dulay was also absent on last week’s organization meeting of the committee. Suansing then went on to ask what the operation was for, to which Valeroso responded that it might be “personal” in nature. After prodding, the BIR official then said that Dulay had a hip operation. Aside from Valeroso, Dulay was represented by deputy commissioners Jesus Clint Aranas, Celia King and Lanee David on Tuesday’s hearing. BIR, which accounts for about 80 percent of tax revenues, is the government’s main revenue agency. It collected P117.4 billion in July, the first month of the Duterte administration, down one percent year-on-year. It marked the first time in seven months that collections dipped, data showed. For the first seven months however, BIR already raised P900.9 billion, up nine percent from last year.

THE WORLD BANK has offered to provide technical assistance in the implementation of the tax reforms proposed by economic advisers of the administration, according to the Department of Finance (DoF).