Tag Archives: Power station

[Campaign] switch off the Christmas lights -PM

switch off the Christmas lights -PM

switch off the Christmas lights -PM

switch off the Christmas lights -PM

Partido ng Manggagawa

Kapag manggagawa ang humingi ng dagdag sweldo, pahirapan pang ibigay ang P10.

Kapag power cartel ang nagsabing magtataas ang presyo, walang kibo ang gubyerno. Ang P4.15/kWh na dagdag singil ng Meralco ay dagdag P830 sa may konsumong 200 kWh kada buwan. Ang dating P12/kWh na singil ay magiging P16/kWh na, na siyang pinakamataas na presyo ng kuryente sa buong mundo.

Kaya hindi sapat ang magalit. Kailangang magprotesta.


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[Press Release] EPIRA a “massive failure” – FDC

MANILA, Philippines – For not succeeding in achieving its objectives of reducing the debts of the National Power Corporation (NPC) and bringing down the power rates in its 10 years of implementation, the Electric Power Industry Reform Act (EPIRA) is a “massive failure,” according to the Freedom from Debt Coalition.

FDC issued the statement echoing the opinion of Senator Joker Arroyo who said that “EPIRA is a failure” during a public hearing of the Joint Congressional Power Commission (JCPC) last Thursday at the Senate.

The advocacy group asked the JCPC to compel the NPC and the Power Sector Assets and Liabilities Management Corporation (PSALM) to make public their financial statements. PSALM is the agency in charge of selling government power assets.

FDC secretary-general Milo Tanchuling, who participated in the JCPC public hearing, stressed that after ten years since EPIRA was passed the power rates have increased and the total amount of NPC debts have remained virtually the same.

He explained that the figures presented by PSALM showed that the NPC’s debt and other financial obligations stood at US$16.387 billion in 2001 when EPIRA was passed. At the end of 2010, it amounted to US$15.821 billion, or a difference of only US$500 million.

“With regard to the basic generation rates of NPC, there have been two rounds of increases since EPIRA was approved, first in 2005 when NPC was granted a P1.03 per kilowatt per hour (kWh) increase and in 2009 when NPC was again granted increases of P0.4682 per kWh in Luzon, P1.1460 per kWh in the Visayas and P0.7147 per kWh in Mindanao,” he said.

Tanchuling said during the JCPC public hearing that his organization was “dismayed by the fact that the huge debts of NPC have remained in spite of repeated power rates increases and power adjustments under EPIRA which were all shouldered by ordinary consumers, not to mention the burden of additional taxes used to invest in the NPC power plants—most of which have now been sold supposedly to pay the NPC debts.”

“It was clear that, EPIRA did not provide for any substantial and meaningful renegotiation of NPC’s contracts with independent power producers (IPPs), even though these contracts require NPC to purchase electricity whether or not these are actually generated or dispatched, and to supply fuel to IPPs that are in operation. The price NPC agreed to pay for this electricity was overstated to begin with, and many of these contracts have clauses that allow the IPP to raise rates over time,” he pointed out.

Tanchuling noted that EPIRA’s failure to meet these two objectives were also the reasons mentioned by Senator Arroyo during the JCPC meeting for the failure of the EPIRA.

Tanchuling proposed to the JCPC that NPC and PSALM should release their annual financial statements to the JCPC so that the public may know why NPC’s indebtedness was not reduced even after selling the bulk of its assets, hiking its generation rates twice and, on top of these, receiving regular payments of its so-called deferred accounting adjustments through the Generation Rate Adjustment Mechanism (GRAM) and Incremental Currency Exchange Rate Adjustment Mechanism (ICERA).

“Moreover, a debt audit of the NPC debts and financial obligations is needed to determine if these were contracted under fair terms and conditions, and then used wisely and prudently. The Filipino people will also have a solid basis to demand the repudiation of any onerous debts and financial obligations of NPC,” he added, “which if passed on to electricity consumers and taxpayers would be a grave injustice.”

Press Release
Contact Person: Milo Tanchuling
Tel. No. (02) 921-19-85

[In the news] Mindanao power crisis ‘worsening’ | Sun.Star

Mindanao power crisis ‘worsening’ | Sun.Star.

By Jereco O. Paloma

DAVAO. Oppositors of the Aboitiz-proposed coal-fired power plant stage a sit-down picket in front of the City Council building while a public hearing was ongoing inside Friday. (Seth delos Reyes). Sunstar.com.ph

DAVAO CITY — AboitizPower Corp., the proponent of a P25-billion coal-fired power plant here, warned anew of the worsening power situation in Mindanao even as environmental groups questioned the shortage’s validity.

In Friday’s final hearing of the City Council on the proposed 300-megawatt (MW) power plant, Aboitiz first vice president for Mindanao Manuel Orig said that since 2009, power shortage had increased significantly.

He said a third party study conducted by an international researcher shows an impending and present power shortage that is higher than what the Aboitiz had projected.

“Makita dyud namo na dili na makaya sa power supply ang power demand (It really shows the power supply cannot meet the demand),” Orig said.

However, Julan Suazo of the Foundation for Philippine Environment questioned the veracity of Aboitiz’ findings, saying there have been no concrete data validating the power firm’s claims of power shortage.

Suazo dared the City Council to come up with a decision free from bias and possible manipulation on the Aboitiz-proposed coal power plant.

Read full article @ Sunstar.com.ph

Privatization of power plants in Mindanao is not the solution to avert crisis

Pulangi River in Valencia City, Bukidnon

Image via Wikipedia

It seems that the “inclination” of President Benigno S. Aquino III to privatize remaining power plants in Mindanao is based on wrong data, the Freedom from Debt Coalition (FDC) said.

Ricardo Reyes, FDC president, said that President Aquino must have been given the wrong data because the actual generation charge of Mindanao power plants, specifically of Agus and Pulangi hydropower complex in northern part of the region, is P2.80, which is less than the selling price of P3.00.

The advocacy group disputed Aquino’s statement that “we kept on selling electricity about P3 when the actual charge of generation was P5,” which he issued in an economic briefing in Cagayan De Oro City last Wednesday.

The President begged for “your understanding but it does not make sense to continue producing any product and selling it at a loss to be passed on to other people.”

Photo source: http://www.businessweekmindanao.comhe President begged for “your understanding but it does not make sense to continue producing any product and selling it at a loss to be passed on to other people.”

“We beg your pardon, Mr. President, but NPC’s Mindanao power plants are earning a net profit of P7 billion annually according to the NPC data that we obtained. How can they be selling at a loss if they are actually turning in net profits annually?” Reyes asked.

In the same economic briefing, President Aquino was also quoted as saying that the financial “loss” of the Mindanao power plants has contributed to  the debt of the Power Sector Assets and Liabilities Management Corp. (PSALM) which now stands at P1 trillion.

According to FDC, President Aquino must have meant the NPC’s debts which were incurred due to the anomalous guarantees provided under the NPC’s contracts with independent power producers (IPP) such as the take-or-pay, fuel and exchange rates. The group added that the Electric Power Industry Reform Act (EPIRA) or Republic Act No. 9136 http://www.neda.gov.ph/references/Ras/RA9136.pdf later legitimized and honored these contracts with anomalous guarantees.

“Now, they have these stranded debts and contract costs as the final financial scheme to collect the said remaining debts of NPC. This is one of the biggest reasons why our electricity bills as well as the debts of NPC and PSALM are very high,” Reyes stressed.

FDC maintained that the privatization of Mindanao power plants will only result in higher power rates for electricity consumers, as what happened in Luzon and Visayas.

“As it is, the Mindanao power plants are providing a vital service in terms of generating and selling electricity at low rates that consumers can afford and still earn profits. There is no reason why they should be privatized, except to bring in the big domestic and multinational monopolies in power generation with the prospect of bigger profits through higher power rates,” Reyes added. JB

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