Jan 032014
 
Palace: No ‘magic wand’ to solve rising power costs

There is no “magic wand” that could be waved to solve the problem on high power costs, a Malacañang official said Friday. “There’s something that can be done but within the bounds of the law,” said deputy presidential spokesperson Abigail Valte at a press briefing Friday. “So while you believe that the executive has so much power, perceived power, we are limited by what the law says.” Valte specifically cited Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001, which she said prevents the government from being a power generator. “People keep asking ‘why don’t you build your own power plants?’ Because of the law that we have, we can’t. Government can’t do that. You can’t put money into that because it’s prohibited,” Valte said. “So we try to work within what is present to address these concerns and these issues. The President has already given instructions to the relevant agencies to see what we can do,” she added. But asked if President Benigno Aquino III will personally push for amendments to the law, Valte said they will still have to look at the proposed amendments.   “Perhaps it’s a matter of finding the right proposal that the President will throw his weight behind,” she said. “Which is why we’ve said that we welcome any initiatives to amend or at least to put forth amendments from our legislators to the EPIRA Law,” she added. The Palace likewise remained cool to the idea of convening the Legislative Read More …

Dec 292013
 
Petilla’s real problems just starting

I have no doubt Energy Secretary Jericho Petilla meant it when he said he will resign if he failed to reconnect the towns in Leyte and Eastern Samar to the power grid by Christmas Eve. But only three towns remain to be connected and that is definitely substantial compliance. ABS-CBN reports the three towns were connected by Friday last week. PNoy was right to reject his resignation. Indeed, P-Noy should hang on to Petilla. It is rare to have someone like him who is ready to put his job on the line towards the accomplishment of a goal. I have not personally met Petilla and initially dismissed him as just another politician. But he is showing himself to be a breed apart from many in P-Noy’s cabinet and key officials. How I wish this retired General Honrado would do a Petilla and put his job on the line on the issue of providing functioning air conditioners, working CCTVs and clean washrooms in all the NAIA terminals. Because he knows he is a bosom buddy of P-Noy (relative pa daw), all he has offered these past three years are excuses, a mountain of excuses. Kung hindi kaya ang trabaho, resign! But he seems to be kapalmuks to the core. Having worked at the Ministry of Energy, I understand the challenges that Petilla faces. We did well enough then because we had an exceptionally results oriented boss in Ronnie Velasco who took no excuses for failure. It was also martial law. Now, Petilla and the energy bosses after Read More …

Jul 272013
 
Industry group pushes for lower power cost

MANILA, Philippines – A group of local industry supporters have asked the government to address the high power cost in the Philippines, noting that it is the highest in Asia. “The cost of power, the highest in Asia, makes the Philippines uncompetitive, not only in manufacturing but also in all areas of the economy,” said the Philippine Employer-Labor Social Partnership, Inc. (PELSPI) in a position paper submitted to the National Economic and Development Authority (NEDA). The group, which includes University of the Philippines labor professor Rene Ofreneo, said the high cost of power in the Philippines is threatening the growth potential of the booming call center sector. “It is even threatening the viability of the booming call center/BPO sector.  In the electronics industry and other manufacturing industries, power accounts for one third of the total cost of production compared to less than 10 percent for payrolls,” the group said. The group noted that the Electric Power Industry Reform Act of 2001 failed to lower power cost and improve power service. It urged the government to review the EPIRA and propose the necessary amendments. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “A review and overhaul of the EPIRA program is urgent,” it said. The group expressed support to the government’s efforts to reengineer a revival of Philippine manufacturing. “With a stagnating industrial and agricultural base, the Philippines, the second most industrially-developed in Asia in the 1960s, has been left behind by our East and Southeast Asian neighbors,” it said. Read More …

May 282013
 
Power users allowed to look for best deal

MANILA, Philippines – The Department of Energy (DOE) and the Energy Regulatory Commission (ERC) will allow power consumers more time to enter into a retail supply contract as part of the open access regime. Under a draft resolution issued by the ERC, contestable customers who have not yet signed a contract with a supplier shall continue to be served by their franchised distribution utilities until they are able to negotiate a more competitive retail supply contract. “The intent is to ease pressure on the contestable customers in securing a retail supply contract and to avoid being disconnected from service or be served by a supplier of last resort which have higher rates,” the DOE said. The DOE said the ERC resolution is intended to address the growing concerns of many contestable customers of possible disconnection due to the inability to sign a retail supply contract with a supplier. The so-called retail competition and open access (RCOA) will make power distribution companies more competitive. Both the DOE and ERC are looking into how RCOA will better operate to achieve the intent of the Electric Power Industry Reform Act (EPIRA) in terms of promoting customer choice, better services and competition in the power supply sector. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Under the so-called open acccess regime, large power users will be able to choose their own suppliers, in contrast with the current system where they are limited to the supplier that has jurisdiction over their areas. Mandated under Read More …