Primarily based on the common demand for electrical energy on the Luzon-Visayas grids in January and February, the GDP of the Philippines within the first quarter of 2021 appears to point a contraction of -5% with a contraction of the demand for electrical energy of -6, 7% in January and a contraction of -4.8% in February. .

Information from the Philippine Unbiased Electrical energy Market Operator (IEMOP) additional exhibits that electrical energy costs within the wholesale spot electrical energy market, the efficient spot settlement value (ESSP) and Load Weighted Common Worth (LWAP) stay low in January and February, reflecting low demand relative to provide (see Desk 1).

The federal government’s coverage of indefinite lockdown, which shall be precisely one yr previous on March 15, stays the primary supply of uncertainty and financial contraction.

Final week a congressional invoice was mentioned and reported in Enterprise world, “Home Committee Approves Downstream Pure Gasoline Invoice” (March 3). He says that “the committee authorised the substitute invoice changing Home Invoice 3031 or the Downstream Pure Gasoline Business Improvement Invoice.”

I’ve checked the substitute bill and these three sections are very suspicious:

“Second. 38. The share of pure fuel within the Philippine vitality plan… the required share of pure fuel, within the type of a mix of fuels, a portfolio normal and / or different coverage… should be absolutely applied. “

“Second. 39. The exit assist and safety… essential to maintain investments in PDNGI should be embraced.”

“Second. 40. Capability and reserve markets…. Leverage reserve capacities of energy vegetation fired with pure fuel[…]are established. “

Second. 38 issues the compulsory minimal share of natgas, Sec. 39 issues the obligatory taking or fee of natgas, and Sec. 40 issues the compulsory reserve capacities of natgas. That is favoritism and cronyism for the fuel corporations – horrible.

Three and a half years in the past, this column (“Cronyism in renewable energies, the fuel sectors?”, September 7, 2017, https://www.bworldonline.com/cronyism-renewable-energy-gas-sectors/) wrote about FirstGen President and COO Giles Puno’s convention at UPSE, the place he lobbied for LNG – “1.) international and outlined vitality combine, 2.) fiscal and non-fiscal insurance policies, 3.) safe LNG sampling, much like how the Malampaya was propped up.

These three factors are just about the identical as clauses 38, 39 and 40 of the surrogate invoice – wow.

In a Viber interview with Lawrence Fernandez, vice chairman of Meralco and head of utility economics, he made an fascinating remark: “Electrical energy shoppers have been struggling for years with varied grants and mandates to assist (a.) Renewable energies (RE) by way of Feed -in tariff allocations (FIT-All) and renewable portfolio requirements (RPS), b.) electrification of distant areas by way of missionary electrification with common cost ( UCME), c.) The event of off-grid renewable energies by way of the RE Money incentive, and, d.) Malampaya fuel by way of a purchase order or fee provide. “

These infinite assaults aimed toward watering down or killing coal-fired energy within the Philippines and changing it with renewables and extra intermittent pure gases, that are additionally fossil fuels, are incompatible with international vitality realities.

Many nations are in a position to meet their improvement and fast development wants by counting on low-cost and steady coal vitality. Examples are China, India, South Africa, South Korea, Indonesia, Australia, Malaysia, Turkey, Taiwan, Vietnam, Poland and the Philippines. The wealthy nations that developed quickly many years in the past did so by counting on steady and low-cost coal vitality. Examples of those from 1985 are the US, Germany, the UK and Spain (see desk 2).

China, India and Indonesia, which represent 48% or practically half of the whole world inhabitants, had been 63% -73% depending on coal in 2019. Among the many wealthy nations in 2019, Taiwan, Korea South and Australia had 41% -56% dependent coal. And the a lot richer United States, Japan and Germany depended 24-32% on coal.

If gas-fired electrical energy is given precedence or despatched to the community on a compulsory foundation, fuel corporations have little or no incentive to decrease their costs and, consequently, to disregard two necessary guidelines: the “decrease price” mandate of public companies. distribution (UD). the EPIRA legislation of 2001 (RA 9136) and the aggressive choice course of (CSP). The tip result’s costlier electrical energy for shoppers.

The Division of Power, the Power Regulatory Fee, the Philippine Competitors Fee {and professional} organizations ought to warn Congress of the risks to vitality shoppers and companies when natgas cronyism turns into legislation.

Bienvenido S. Oplas, Jr. is the president of Minimal Authorities Thinkers

minimal authorities@ gmail.com