Tag Archives: WESM

[Press Release] Workers want full prohibition not a compromise deal on power rate hike -Nagkaisa

Workers want full prohibition not a compromise deal on power rate hike

Organized labor under Nagkaisa is insisting for no less than the full prohibition of the December 2013 and January 2014 rate hike, rejecting in effect the Philippine Electricity Market Corporation’s (PEMC) recomputed rate that is 80 percent lower than the approved market rate in December and January.

NAGKAISA

PEMC, which operates the Wholesale Electricity Spot Market (WESM), said on Tuesday that it had finished its recalculation of market prices in compliance with the Energy Regulatory Commission (ERC) order of March 3. For the December 2013 billing, it set the new spot market rates at P6.007 (76.35 percent lower) than the P25.404 per kWh, and P6.246 (77.98 percent lower) than the original P28.367 per kWh for the billing month of January 2014.

“The numbers are out and PEMC’s recomputed rates bared all the elements of market failure. We insist that any residual cost coming from this failure must be deemed unjust and therefore should not be passed on to consumers,” said Wilson Fortaleza of Nagkaisa power team.

Fortaleza, who is also the spokesperson of Partido ng Manggagawa (PM), argued further that in this particular case, the market failure was also a result of regulatory failure the more it should not be borne by the consumers.

He pointed specifically to the failures of the ERC and PEMC to regulate the market despite the expected tightness in supply due to the Malampaya shutdown and also being aware of official reports citing repeated occurrence of market abuse since WESM started operating in Luzon in 2006; and the failure on the part of the Department of Energy (DoE) to ensure reliable supply of power and impose sanctions on erring power plants.

Tomorrow, Nagkaisa and the Power to the People (P2P) network will stage a picket rally at the PEMC to call for the suspension of WESM operations, saying it is not the consumers but the rich owners of generation and distribution companies who profitably gain from this fraudulent trading scheme.

There are also reports that the PEMC Board, who are not independent but made up of the players themselves, receive fat compensations and other perks, including brand new service vehicles.

“We challenge the government to tell the people the truth that WESM won’t work in a very small and highly concentrated market ruled by certified predators in the power industry,” concluded Fortaleza.

NAGKAISA!
PRESS RELEASE
20 March 2014
Contact: Wilson Fortaleza
09178233956

All submissions are republished and redistributed in the same way that it was originally published online and sent to us. We may edit submission in a way that does not alter or change the original material.

Human Rights Online Philippines does not hold copyright over these materials. Author/s and original source/s of information are retained including the URL contained within the tagline and byline of the articles, news information, photos etc.

[Press Release] Protests vs. Meralco rate hike spreads outside Manila as coordinated picketing staged

Protests vs. Meralco rate hike spreads outside Manila as coordinated picketing staged

Madilim na pasko by PM

The militant Partido ng Manggagawa (PM) staged a coordinated picketing of Meralco branches as protests against the huge power rate hike intensified at the grassroots level and spread outside Metro Manila. Meralco branches in Paranaque, Rizal and Cavite were picketed this morning and afternoon by several hundred workers and urban poor.

Also today, the PM spokesperson together with leaders of other groups formally asked for an anti-competition inquiry on Meralco’s rate hike. The request was filed with the Office for Competition which is under the DOJ and was created by E.O. 45 series of 2011.

“If competition exists in the power industry then business interests would collide but under EPIRA, the players collude,” stressed Wilson Fortaleza, PM spokesperson, as he joined the filing of the request for inquiry on unfair competition against Meralco and generation companies.

He added that “It is futile to pursue an honest scrutiny of Meralco’s huge rate hike through the ERC which is totally captured by monopolists in the power industry. Instead we hope the Office from Competition can give a fair hearing to the complaint. If PNoy is serious about investigating Meralco’s hike, then he can do something through the Office for Competition which is under his authority, unlike the ERC.”

At 10:00 am today, PM members trooped to the Meralco branch in Tambo, Paranaque and Antipolo City in Rizal. Later at 3:00 pm, other PM members in Cavite picketed branches in the towns of Rosario and Dasmarinas.

In the next few days, PM will continue the series of protests with pickets in Marilao, Bulacan and GMA, Cavite.

Press Release
December 16, 2013
Partido ng Manggagawa
Contact Wilson Fortaleza @ 09178233956

All submissions are republished and redistributed in the same way that it was originally published online and sent to us. We may edit submission in a way that does not alter or change the original material.

Human Rights Online Philippines does not hold copyright over these materials. Author/s and original source/s of information are retained including the URL contained within the tagline and byline of the articles, news information, photos etc.

[Press Release] Lawmakers, activists want collusion in power firms investigated by DOJ -FDC

Lawmakers, activists want collusion in power firms investigated by DOJ

Citing possible cartelization or combination by several power firms which led to Meralco’s sharp increase in generation charge this month, a group of lawmakers and social activists filed before the Department of Justice (DoJ) this morning, a petition asking the Office for Competition to conduct an inquiry into the matter.

FDC

Executive Order No. 45 series of 2011 has designated the Department of Justice as the Competition Authority in the country. Created under this EO was the Office for Competition which can receive any form of complaint as a basis for inquiry or further study on possible violations of laws prohibiting cartelization, monopolies, or combinations in restraint of trade as defined in competition laws.

The petitioners availed of this remedy after the Energy Regulatory Commission (ERC), with neither public hearings nor conduct of probe into allegations of market abuse, approved en toto the amount of P4.15/kWh that Meralco can recover from its purchase of power this month due to the scheduled shutdown of Malampaya natural gas platform.

Signatories to the letter/petition include Akbayan Representatives Walden Bello and Barry Gutierrez, Representative Raymund Mendoza of Trade Union Congress of the Philippines, economist Maitet Diokno of the Center for Power Issues and Initiatives, Wilson Fortaleza of Partido ng Manggagawa (PM) and NAGKAISA, and Freedom from Debt Coalition (FDC) President Ricardo Reyes.

These groups and individuals were involved in campaigns on the power issue prior to and after the passage of the Electric Power Reform Act or EPIRA. They maintain that the unabated increase in power rates, market concentration and the threat of another power crisis were the results of EPIRA which for the past eleven years produced nothing but escalating rates and diminishing power supply.

In particular, the petitioners pointed to possible collusions by Meralco, First Gas Power Corporation, San Miguel Corporation, Kepco Philippines, Aboitiz Power, Team Energy Corporation, AES Philippines and DMCI Holdings, Incorporated when their plants went into simultaneous and unscheduled shutdown resulting to more load deficits in the Luzon grid and which forced Meralco to buy a more expensive power from the Wholesale Electricity Spot Market or WESM.

“The expected and scheduled maintenance of Malampaya notwithstanding—an event Meralco was aware of more than six months before its occurrence—and Meralco’s claim that such was not anticipated, and the unscheduled shutdown of several power plants that resulted to Meralco’s recourse to expensive electricity from the WESM, are information that point to a contrived scenario of extreme short-term shortage of electricity for the purpose of raising the price of electricity beyond what it would cost to generate it,” said the petitioners.

The petitioners bewailed that the increase in electricity costs can only add to the economic burden of end-users and consumers who, at a time when the whole nation is reeling from the brunt of Typhoon Yolanda and in anxious anticipation of the holiday season, face increases in prices of basic commodities like liquefied petroleum gas, Metro Rail Transit fares and the like.

The group vowed to escalate their campaign for the overhaul of EPIRA next year.

Press Release
December 16, 2013

Human Rights Online Philippines does not hold copyright over these materials. Author/s and original source/s of information are retained including the URL contained within the tagline and byline of the articles, news information, photos etc.