Oil Unbundling Circular

DOE STATEMENT ON THE COURT OF APPEALS' RULING UPHOLDING THE TAGUIG RTC'S ISSUANCE OF A WRIT OF PRELIMINARY INJUNCTION ON THE IMPLEMENTATION OF THE OIL UNBUNDLING CIRCULAR

Although the Court of Appeals' (CA) Decision on the matter was released through its website, the Department of Energy (DOE), through its counsel the Office of the Solicitor General, has yet to formally receive a copy of the Ruling. Once formally received, the DOE intends to seek a reconsideration of the Decision, and raise the issue to the Supreme Court, if necessary.

The DOE would like to emphasize that the CA ruled only on the issue of the validity of the trial court's issuance of a writ of preliminary injunction. 

While the writ has prevented the DOE from implementing Department Circular (DC) DC2019-05-0008 on the unbundling of oil prices during the course of the case in the trial court, the CA Decision did not rule on the validity or invalidity of the DC.

The DOE considers the Circular vital as it believes in the objective of the law for the transparency of oil prices, at least to the government, in order to formulate better and more responsive oil industry policies. The DOE issued the Circular to help strengthen the agency's capability to monitor oil prices more effectively.

Moreover, the cases filed by the oil companies to nullify DC2019-05-0008 were based on the wrong notion that the supposed trade secrets they are being obligated to submit to the DOE wiill be divulged to the public. Time and again, the DOE has been stressing that all confidential information shall be kept strictly confidential.

The DOE maintains that the unbundling of oil prices would foster greater market transparency by establishing the trends in the prices of oil and finished petroleum products. This, in turn, would help ensure a level playing field within the oil industry, while upholding the best interests of consumers.

ERC Calls for Comments on the Proposed New RCOA Timeline

PRESS STATEMENT: ERC Calls for Comments on the Proposed New RCOA Timeline

The Energy Regulatory Commission (ERC), in a Notice issued pertinent to ERC Case No. 2020-002 RM in re:  Draft Resolution Prescribing the New Timeline for the Implementation of Retail Competition and Open Access (RCOA), sought comments from all interested parties on the proposed Resolution until 12 October 2020.  The first draft of the proposed Resolution aims to provide guidance on the implementation of the RCOA scheme, more particularly the updated timeline for the full implementation thereof.

"We are requesting all interested parties to submit their comments or inputs on the Draft Resolution Prescribing the New Timeline for the Implementation of Retail Competition and Open Access (RCOA) to ensure that we leave no stone unturned and ensure the seamless implementation of the RCOA", said ERC Chairperson and CEO Agnes VST Devanadera. 

At present, RCOA is implemented in the Luzon and Visayas grids for the Phase I (1MW & up) and Phase II (750kW-999kW) contestable customers, on a voluntary basis.  The ERC's draft Resolution prescribes the time frames for the lowering of the threshold or the average monthly peak demand to cover end-users, as follows:  

                           Threshold                             Level Effectivity

Phase III              500 kW to 749 kW               Feb. 26, 2021

Phase IV              100 kW to 499 kW               Jan. 26, 2022

Phase V               10 kW to 99 kW                   Jan. 26, 2023

End-users who meets the threshold level shall be allowed to contract with any licensed/authorized suppliers of electricity on a voluntary basis.  

The RCOA shall be effective in grids where the Wholesale Electricity Spot Market (WESM) is operational.  All suppliers of electricity shall be licensed or authorized by the ERC to supply in the Competitive Retail Electricity Market (CREM).  

Under the RCOA environment, the qualified Contestable Customer will be notified by the Network Service Providers of the former's ability or option to choose his electric service provider and may switch to his preferred Retail Electricity Supplier (RES).  Meanwhile, the Meter Service Provider (MSP) shall install the meter facilities that will measure the energy use and demand of the qualified contestable customer.  The MSP is the person or entity authorized by the ERC to provide metering services in the CREM.

"The benefits of the RCOA scheme will soon come to fruition despite the temporary setback that came up against its implementation.  The envisioned competition in the retail level of the supply sector will soon be a reality and the consuming public will be the beneficiaries of the RCOA as they can opt to choose the electricity provider that offers the most competitive price", Chair Devanadera added.

DOE and Development Partners Hold EE&C Forum for Luzon LGUs

JOINT MEDIA RELEASE

5 October 2020

DOE and Development Partners Hold EE&C Forum for Luzon LGUs 

TAGUIG CITY - As part of continuing efforts to ensure the full implementation of Republic Act 111285 or the Energy Efficiency and Conservation Act of 2019 and its Implementing Rules and Regulations (IRR), the Department of Energy (DOE) and its development partners conducted the Luzon Energy Efficiency & Conservation (EE&C) Virtual Forum for Local Development on 1-2 October 2020. The online forum was the fourth and final event in the series aimed to propel local energy efficiency initiatives and inclusive development in throughout the country.

Signed into law by President Rodrigo Duterte on 12 April 2019, the EE&C Law and its IRR seek to secure the country's energy supply by making EE&C a national way of life.

In his keynote speech, DOE Senior Undersecretary Jesus Cristino P. Posadas urged local government units (LGUs) and co-workers in the government to become models in the responsible use of energy in order to effectively champion EE&C. 

"Challenges persist, with COVID-19 being at the top of that list, but we must be committed towards a more sustainable and green future, not just for Luzon, but for the whole country," Usec. Posadas stressed.

Department of the Interior and Local Government Undersecretary Epimaco V. Densing III, who was also another keynote speaker, emphasized that "as public servants, we must maintain the balance of development and the preservation and conservation of our environment. The LGUs play a vital role in ensuring that provisions of the law are translated to local policies and appropriate strategies are implemented to ensure that energy efficiency and its benefits are felt throughout the country." 

He also underscored the importance of having a sound energy efficiency framework "in ensuring a sustainable energy future, where our quest for development and discovery for new technologies shall not compromise our environment."

Meanwhile, EU Programme Manager for Energy Ms. Ileana Miritescu, in her opening remarks, emphasized that "the challenge to the energy sector is how to contribute to the collective efforts to 'Build Back Better' in response to this pandemic." She added that everyone needs to "transition to a new normal that makes use of our finite energy resources in the most efficient and effective way and reinforcing the multiple co-benefits of energy efficiency".

Among the highlights of the Forum was a presentation on the salient features of the EE&C Act and its IRR, conducted by DOE-Energy Utilization Management Bureau Director Patrick T. Aquino. He was also on hand during the Q&A to address questions raised by participants on the development of local energy plans, the obligations of designated establishments, certifications, incentives, rating and labeling requirements, minimum energy performance, demand side management, as well as the challenges and prohibited acts under the law. 

On 30 September 2020, a pre-forum session to assist LGUs in completing the DOE's Local Energy Efficiency and Conservation Plan template was co-organized by World Wide Fund for Nature (WWF) Philippines, through its One Planet Cities Program. Atty. Gia Ibay, Head of Climate and Energy Programme and National Director of WWF-Philippines' Earth Hour, comprehensively explained how cities around the world are delivering their climate commitments through energy efficiency measures.

More than 250 local government executives, national government officials, financing institutions, private sector energy players and investors attended the Luzon EE&C Virtual Forum for Local Development, which was organized in partnership with the European Union-supported Access to Sustainable Energy Programme (EU-ASEP), the ASEP Clean Energy Living Laboratories, and the Asian Development Bank.

Congresswoman Hits GCash and E-Payment Charges

REP. BERNADETTE "BH" HERRERA                       
Bagong Henerasyon Party-list
Secretary-General, The Party-list Coalition Foundation, Inc.
Deputy Majority Leader | Governor, Rotary Philippines RID3780
0917-729-2437 Twitter: @BHherrerady

RANKING SOLON SLAMS GCASH, PAYMAYA FOR NOT HOLDING OFF E-PAYMENTS CHARGES TO UNTIL DEC. 31, 2020

I object to the decision of GCash and PayMaya to start charging their customers fees for use of PESONet and InstaPay e-payments mechanisms starting October 31.

These companies should rethink their decisions. During this pandemic crisis, especially in the areas still under MECQ and GCQ, every peso counts.

The other financial institutions opted to waive e-payment charges until December 31 this year. They made the prudent and compassionate decision.

P50.00, the maximum charge per transaction, can buy one kilo of rice and ingredients for one vegetable meal or about seven eggs.

For the poor, who have been using e-payments for the first time during this pandemic, the fees would be yet another disincentive to use e-payments. They would go back to have little or no

access to financial services. They will go back to being unbanked.

It is not yet too late for GCash and PayMaya to change their minds. (END)

Virtual Forum to Boost Luzon LGU Implementation

Virtual Forum to Boost Luzon LGU Implementation of the PH EE&C Law

 

TAGUIG CITY - The Department of Energy (DOE), in partnership with the European Union supported Access to Sustainable Energy Programme (EU-ASEP), ASEP-Clean Energy Living Laboratories, and the Asian Development Bank, will host the virtual Luzon Energy Efficiency and Conservation Forum for Local Development from 1 to 2 October 2020 via Microsoft Teams.

 

The online event would provide participants, particularly local government units in Luzon and energy stakeholders, an overview of the salient features of Republic Act No. 11285, or the Energy Efficiency and Conservation (EE&C) Act of 2019 and its Implementing Rules and Regulations (IRR). Signed into law by President Rodrigo Duterte on 12 April 2019, the EE&C Act aims to secure the country's energy supply by making EE&C a national way of life.

 

Other topics to be discussed during the two-day forum are local EE&C plan development, designated establishments, energy performance and labeling, certification for professional competency and accreditation for professional services, demand-side management, fiscal and non-fiscal incentives, and the updated Guidelines on Energy Conserving Design of Buildings. 

 

DOE Senior Undersecretary Jesus Cristino Posadas and Department of Interior and Local Government Undersecretary for Operations and Energy Efficiency and Conservation Officer Epimaco Densing III are scheduled to deliver keynote addresses, while DOE-Energy Utilization Management Bureau Director Patrick T. Aquino will be delivering a presentation on the EE&C Act of 2019, its IRR, and other related programs and policy issuances. 

 

With over 200 expected participants, the Forum is seen to be a major step that would help mainstream national EE&C policy for inclusive development in Luzon.

Applications for Nominated Areas in Offshore Mindoro and Recto Bank Basin

DOE Opens Applications for Nominated Areas in Offshore Mindoro and Recto Bank Basin

TAGUIG CITY- The Department of Energy <a href="https://doe.gov.ph">(DOE)</a>, through its Energy Resource Development Bureau (ERDB), opened the submitted applications for Nominated Area No. 5, located in Offshore Mindoro Basin, and Nominated Areas No. 6, 7 and 8, located at the Recto Bank Basin within the West Philippine Sea, under the Philippine Conventional Energy Contracting Program (PCECP) yesterday (14 September) at the agency's headquarters. 

"As quarantine restrictions gradually ease, we actively welcome all PCECP applications that will help us maximize the exploration, development, and utilization of our indigenous energy resources to help us attain energy security and independence," Energy Secretary Alfonso G. Cusi said.  

Three companies submitted applications, namely Troika Giant Power Corporation for Area No. 5; PXP Energy Corporation for Area No. 6; and Udenna Corporation for Areas No. 7 and 8. 

All three passed the technical, legal, and financial "completeness check" conducted in yesterday's opening activity. The DOE-ERDB, together with the Technical Working Group composed of the DOE's Legal Services and Financial Services, will conduct further substantive evaluations of the proposals within fifteen (15) working days.

To help attain energy security, as well as cushion the country from the volatility of global oil price markets, the DOE established the PCECP to help reinvigorate petroleum exploration and development activities in the Philippines.

Full Electric Vehicle by Japanese Automobile Company

TAGUIG CITY- Department of Energy (DOE) Secretary Alfonso G. Cusi leads the test drive of the Nissan LEAF, a 100% full electric vehicle (EV), which the Japanese automobile company will be introducing to the Philippine market in 2021.

The test drive is being held at the Energy Center at Fort Bonifacio in Taguig City, where the DOE main office is located.

Joining Secretary Cusi are Nissan Philippines Inc. President Atsushi Najima, Electric Vehicle Association of the Philippines (EVAP) Chairman Rommel Juan, Energy Assistant Secretary Leonido J. Pulido III, DOE Energy Utilization and Management Bureau (EUMB) Director Patrick Aquino, and Nissan LEAF Specialist Cyrus Macasera.

Nissan has been one of the active proponents globally in the push towards the electrification of transportation, and for the realization of a zero-emission society. 

Earlier, Nissan executives relayed to Secretary Cusi that the company is bringing the LEAF's EV technology to the country in support of the Duterte administration's vision of a safer, smarter and more sustainable future.

The DOE has been promoting EVs to reduce the country's reliance on petroleum as the transportation energy source. More than 30% of the country's energy requirement comes from the transport sector. With the advent of EVs, consumers are given more energy-efficient alternative to petroleum-fueled vehicles, allowing them to benefit from lower fuel and maintenance costs.

Provincial Government of Sultan Kudarat Building Turnover

The Provincial Governor of Sultan Kudarat Hon. Suharto T. Mangudadatu, PhD joined the turn-over ceremony of usufruct building between the Provincial Government of Sultan Kudarat and Philippine Red Cross- Sultan Kudarat Province Chapter.

The said turn-over ceremony was attended by various officials of Philippine Red Cross- Sultan Kudarat Province Chapter and Provincial Vice Governor Hon. Jose Remus Segura. 

The new- building will serve as a home of the Philippine Red Cross- Sultan Kudarat Chapter for 50 years. The said new office is located at Brgy. EJC Montilla, Tacurong City, Sultan Kudarat. 

The Philippine Red Cross is one of the important partner of the Provincial Government in delivering public services by reaching out it's clienteles particularly humanitarian services. 

Also present in the program is the Provincial Administrator of Sultan Kudarat Jimmy Andang and members of the Board of Directors of Philippine Red Cross- Sultan Kudarat Province Chapter.

SEC Warns Another Online Scam

The Securities and Exchange Commission (SEC) has issued another set of advisories against several entities soliciting investments from the public without the necessary licenses.

 

We are reminding the public to exercise caution when dealing with individuals or groups soliciting investments for and on their behalf:  

 

1. JUAN SAVINGS

2. 1 HEAL 1 WORLD TRADING

3. KAIZEN MARKETING ENTERPRISE

4. BITFINANCEINVESTMENT.LTD 

5. CHIYUTO CREATIVE WEALTH DOCUMENT FACILITATION SERVICES ("CCWDFS")

JUAN SAVINGS, which is claiming to be engaged in a legitimate forex trading business and has its own professional traders, has NOT been issued a license by the SEC. Moreover, the Commission does not allow the registration of Foreign Exchange (FOREX) in the nature of Commodity/Financial Futures Contract, Contracts for Difference (CFDs) and other similar derivatives nor their merchants/brokers as the pertinent rules governing these securities remain suspended pursuant to Rule 11 of the 2015 Implementing Rules and Regulation of the SRC.

1 HEAL 1 WORLD TRADING and CHIYUTO CREATIVE WEALTH DOCUMENT FACILITATION SERVICES ("CCWDFS") are not registered with the Commission either as a corporation or as a partnership and is not authorized to solicit investments from the public.

Meanwhile, the scheme of KAIZEN MARKETING ENTERPRISE through its CEO program, with its focus on recruitment, is undoubtedly a PYRAMIDING SCHEME masquerading as a Multi-Level Marketing program and therefore, involves the offer and sale of securities in the nature of investment contract to the public.

BITFINANCEINVESTMENT.LTD, which offers guaranteed, risk-free investments plans purportedly to be invested in cryptocurrency trading, is NOT REGISTERED with the Commission and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities. It is also NOT REGISTERED either as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding. Likewise, its name DOES NOT APPEAR among the registered banks, exchanges or companies engaged in digital assets with the Bangko Sentral ng Pilipinas (BSP).

For the complete list of advisories, you may visit https://www.sec.gov.ph/investors-education-and-information/advisories/

We hope you can help us warn the investing public. Thank you!

Retail Electricity Market Gains Ground Despite COVID-19

Retail Electricity Market Gains Ground Despite COVID-19

The Energy Regulatory Commission (ERC), in its 2nd Quarter 2020 Monitoring Report of the Retail Electricity Market, stated that it has granted a total of forty-two (42) Retail Electricity Supplier (RES) Licenses and authorized twenty-five (25) Local RES.  The said suppliers now compete for the supply of electricity of contestable customers in the Competitive Retail Electricity Market (CREM).  The CREM is where qualified contestable customers (those consuming 750 kW and above) have the option to choose their electricity provider, either from an RES or from a Local RES, the competitive business segment of a distribution utility (DU).  

"The Commission has been regularly monitoring the activities in the Competitive Retail Electricity Market to observe the behavior of the stakeholders in this market, particularly in terms of pricing, switching patterns and the capacity and energy of contestable customers", said ERC Chairperson and CEO Agnes VST Devanadera.

The ERC's Monitoring Report further disclosed that as of the 2nd Quarter of 2020 total registered contestable customer issued with Certificates of Contestability by the ERC is at 2,089.  Out of the said number, 1,460 or 70% have entered into Retail Supply Contracts (RSC), which means that these qualified customers have decided to source electricity from a RES. The remaining 629 or 30% stayed with the regulated services of their respective DU.

From the total number of 1,460 contestable customers which have entered into RSCs, 1,120 or 77% are within the 1MW and above threshold, while 340 or 23% are within the 750kW to 999kW threshold.  Meanwhile, for the 629 contestable customers with Certificates of Contestability which have remained under the regulated services of their respective DUs, 328 or 52% are within the 1MW and above threshold, while 301 or 48% are within the 750kW to 999kW category.

In terms of market share, the total demand of all contestable customers as of the 2nd Quarter of 2020 is recorded at 4,977.31 MW.  Out of the said total demand, 81% are currently being served by an RES while the remaining 19% are still under the DU regulated service.

With respect to the suppliers in the CREM, the ERC's monitoring report further disclosed that majority or 55% of the ERC-licensed RES are affiliates of generation companies (GenCos) while 20% are also operating a generation company as another business segment. Meanwhile, 17.50% have no affiliations in the electric power industry whereas the remaining 7.50% are affiliated with Distribution Utilities (DUs).    Having more suppliers that are GenCo affiliated gives confidence that electricity supply is ensured and that they have the capability to offer competitive or cheaper prices in the CREM.  This is a positive indication which signifies that competition in the CREM is gaining ground and slowly breaking the monopoly in the supply of electricity by allowing more entities to act as a supplier. 

As to the contestable customers' participation, the CREM registered an increase of almost 2% despite the Community Quarantine imposition in most of the areas in the country.  Although the contracted capacity of these contestable customers were reduced due to the impact of the pandemic on operations, the increase means that more contestable customers opted to enjoy the benefits of Retail Competition and Open Access (RCOA). 

In terms of pricing, the ERC's evaluation revealed that eleven (11) RES have decided to offer lower rates for the quarter, while fourteen (14) RES have maintained their previous quarter's offer prices, and seven (7) RES have increased their prices.  Nonetheless, the overall price scenario for the 2nd Quarter showed a diminishing trend with a weighted average price of PhP4.12/kWh in April which decreased to PhP3.97/kWh and PhP3.95/kWh in May 2020 and June 2020, respectively. Such reduction in the weighted average prices manifests a strengthened competition in the CREM.

"The increased participation of contestable customers in the Contestable Retail Electricity Market and the diminishing trend in the prices being offered by Retail Electricity Suppliers is a silver lining in the midst of this COVID-19 pandemic.  This positive development stimulates competition among Retail Electricity Suppliers and will entice more contestable customers to shift to these electricity providers", ERC Chair Devanadera concluded.