Tag Archives: Interruptible Load Program (ILP)

Power to the People Coalition calls for People’s Resistance Against the Aquino Emergency Power

The passage of the Joint House Resolution 21 giving President Aquino emergency powers at a time when the people are still reeling from typhoon Ruby and despite popular clamor against this Congressional moves—is a blatant disregard of the people’s will and rights. Like thieves in the night, the congressmen passed the resolution which continues to stand on a shaky legal and factual basis, despite protests from various quarters. To this date , Secretary Petilla and even Malacanang miserably failed to justify the need for such power using Section 71 of EPIRA as its legal shield.

This will lead us to doubt the real intentions for the emergency power. The DOE even admitted that the emergency power will not ensure that there will be no power rate hike next year.

One thing is clear though. Private corporations generating power supply for their needs and will be mobilized in the Interruptible Load Program( ILP) of the government will stand to benefit from this emergency power. It is not surprising why the likes of Henry Sy of SM is eager and willing to participate in the said program. The government’s solution to resolve the power crisis means pushing for its pending and new coal power plant projects that face legal and popular opposition, particularly from impacted communities. Therefore, we continue to assert that the proposed measures will only benefit corporate interest and will further violate human rights of the people and destroy the environment.

There is no long-term solution to the perennial power supply crisis and the unending rise in power costs other than for the government to repeal EPIRA, junk the privatization regime, and put under public control the power industry. A decisive component of this is to restore to Government its planning and regulatory powers apart from restructuring ownership of power generation, transmission and distribution in favor of the State and the public.

The Power to the People coalition will never stop and will continue to campaign against this dangerous and destructive emergency power measures of the government. The people need to be vigilant and active in stopping any measure that will lead to their harm and the betrayal of their interests and sovereign will. They should oppose any emergency measure that will ram through dirty and harmful energy projects like the new coal power plants, destroy the environment and exacerbate our climate crisis. We will welcome the year 2015 with continued protest actions if the government will remain intransigent and ride roughshod over the people’s rights and interests and ignore the snowballing public demand for the scrapping of the emergency power and the repeal of EPIRA.

Let this be a warning and a notice to this power-hungry administration.




Power crisis real, strategic but gov’t doing mere quick fix – labor coalition

The emerging power crisis is a cruel outcome of a bad policy under the Electric Power Industry Reform Act (EPIRA) that cannot be resolved by the proposed emergency power President Aquino is seeking from Congress, the labor coalition Nagkaisa said in a statement.

The group said it is not common for ordinary workers to comment on techno-economic aspects of the power industry, but for this coming celebration of Bonifacio Day on November 30, labor will come out loud on this along with other big issues because the high cost of power in the country is making the lives of ordinary workers more miserable.

According to Wilson Fortaleza, spokesperson for Partido Manggagawa (PM) and one of the convenors of Nagkaisa, “this quick-fix solution via an emergency power to address a decade-old problems of escalating rates and diminishing supply reignited labor’s apprehension that once again, a power crisis is being transformed into business opportunity for the private sector.”

Fortaleza was referring to the Interruptible Load Program (ILP) and power contracting being pursued through a joint resolution in Congress that would grant the President emergency powers to address the expected power shortage in 2015.

He said the ILP can be pursued by the Department of Energy (DoE) even without the President exercising emergency powers because it is merely a demand-side management issue and not production of additional generating capacity as required under Section 71 of EPIRA.

“Likewise, the foreign and privately-operated National Grid Corporation must first be made to account for its primary responsibility to secure reliable supply, including sufficient reserve capacities,” argued Fortaleza.

The group explained that the ILP is a mode for utilizing standby power or embedded generating capacity available in several establishments such as malls and commercial buildings. During shortage, their utilization means an x amount of freed megawatt capacity that can be supplied by Meralco to other users.

Fortaleza, however, said that for this alone an emergency power is not needed. So why is Malacanang asking for it? The group can only think of the following scenarios:

– Under the ILP enrollment is voluntary but enrollees will be compensated to incentivize their participation

– But because there is no system currently in place to exactly determine the price of compensation, imposing a universal levy – an x amount per kWh to be charged to consumers take-or-pay – is the most likely scheme.

– Retail electricity suppliers (RES) who already posses contracted capacities under the open access (but which they cannot supply to their contestable market because most of them are also ILP players) will also be compensated.

These, in effect, will result to rate increases. But Fortaleza insists that a take-or-pay levy cannot be charged to consumers under ILP since embedded generation sets were designed or were practically built by industry players to address expected and non-expected outages.

“So why do we have to pay them for that temporary sacrifice? And why will Henry Sy, John Gokongwei and Jaime Ayala charge an x amount per kWh from everyone, including non-mall users?”

The group argued further that the only valid excuse for utilizing emergency powers is when the government goes back to generation, stop industry fraud, and makes a decisive shift to renewable energy and energy democracy.

Labor group wants Petilla’s head for deceiving the Filipino people bigtime over so-called power crisis

A COALITION of 49 labor groups and workers’ organizations called Nagkaisa is demanding President Aquino to immediately fire Energy Secretary Jericho Petilla for deceiving the Filipino people with his manufactured power shortage scenario hitting the entire island of Luzon early 2015.

Officials of the Department of Energy admitted during a congressional hearing that the projected deficit in supply for the coming summer of 2015 is only about 21 to 31 MW, a far cry from the 1,200 MW shortfall trumpeted by Petilla.

“It is now very clear to us that Secretary Petilla took the country for a ride. He bluffed the president, the cabinet, the senators and the congressmen, the business sectors, the labor and consumer groups with his tall tales of thin power reserves to justify emergency powers that entails possible purchase of multi-billion peso generator sets. Mr. Petilla deliberately exposed the country to unnecessary jeopardy that has been discouraging job-creating investments away since he came out with his bogus story in July,” Josua Mata of Sentro-Nagkaisa, one of Nagkaisa convenors said reading Nagkaisa statement.

“This is a grave crime to the Filipino people. The only way for Secretary Petilla to redeem himself, after having been rebuffed by congressmen for his exaggerated numbers on the alleged looming power crisis, is to apologize to the people and submit an irrevocable resignation. If he doesn’t have the delicadeza to do so, we are demanding his head from the president. Either way, the Filipino people does not deserve a reprehensible nincompoop in government,” he added.

“Instead of asking congress to hastily grant him emergency powers, President Aquino should first kick his energy man out for his failure to lead a critical department of the executive,” Wilson Fortaleza, spokesperson of Partido Manggagawa-Nagkaisa.

Fortaleza said Petilla’s main blunder is the absence of policy intervention and the heap of unsound options in addressing the looming power crisis.

Petilla has proposed costly lease agreements from independent power producers to fill up the capacity gap in two years. Another option was to top existing capacities from industries’ embedded generator sets under the Interruptible Load Program (ILP).

“Petilla must go not because power emergency is none existent but also because policy intervention is absent. The president must fire him for deceiving the entire nation including himself as the chief executive and his fellow members of the cabinet,” added Fortaleza.

Another convenor, Louie Corral, executive director of Trade Union Congress of the Philippines-Nagakisa, explained that had the government acted as early as 2011, we could have started building new capacities by building new power plants; forced private power to rationalize their scheduled maintenance shutdowns; optimize the use of every plant especially hydro; and exercised strong regulatory powers to prevent market fraud.

Yet these options, Fortaleza said, can still be utilized right now as these powers are present under DOE’s mandate, the Energy Regulatory Commission (ERC), the Office of the President, and Congress under the Joint Congresional Power Commission (JCPC).

“The only time we will support emergency powers is when the government finally decides to take over the whole industry with the utmost objectives of bringing down the price and securing a sustainable power supply not only for present needs but also for the next generations to come,” concluded Corral.

The Nagkaisa is a coalition of labor unions and workers’ organizations who band together three years ago to advance security of tenure, reduce the price of electricity, empower public sector workers and improve workers living wage. The members of the coalition are the Alliance of Free Workers (AFW) All Filipino Workers Confederation (AFWC), Automobile Industry Workers Alliance (AIWA), Alab Katipunan, Association of Genuine Labor Organizations (AGLO), Associated Labor Unions (ALU), Associated Labor Unions- Association of Professional Supervisory Officers Technical Employees Union (ALU-APSOTEU), ALU-Metal, Associated Labor Unions-Philippine Seafarers’Union (ALU-PSU), ALU-Textile, ALU-Transport, Associated Labor Unions-Visayas Mindanao Confederation of Trade Unions (ALU-VIMCOMTU), Alliance of Progressive Labor (APL), Association of Trade Unions (ATU), Bukluran ng Manggagawang Pilipino (BMP), Confederation of Independent Unions (CIU), Confederation of Labor and Allied Social Services (CLASS), Construction Workers Solidarity (CWS), Federation of Coca-Cola Unions (FCCU), Federation of Free Workers (FFW), Kapisanan ng Maralitang Obrero (KAMAO), Katipunan, Pambansang Kilusan sa Paggawa (KILUSAN), Kapisanan ng mga Kawani sa Koreo sa Pilipinas (KKKP), Labor education and Research Network (LEARN), League of Independent Bank Organizations (LIBO), Manggagawa para sa Kalayaan ng Bayan (MAKABAYAN), MARINO, National Association of Broadcast Unions (NABU), National Federation of Labor Unions (NAFLU), National Mines and Allied Workers Union (NAMAWU), National Association of Trade Unions (NATU), National Confederation of Labor (NCL), National Confederation of Transport Union (NCTU), National Union of Portworkers in the Philippines (NUPP), National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN), Philippine Airlines Employees Association (PALEA), Pepsi Cola Employees Union of the Philippines (PEUP), Philippine Government Employees Association (PGEA), Pinag-isang Tinig at Lakas ng Anakpawis (PIGLAS), Philippine Integrated Industries Labor Union (PILLU), Philippine Independent Public Sector Employees Association (PIPSEA), Partido Manggagawa (PM), Philippine Metalworkers Alliance (PMA), Public Services Labor Independent Confederation (PSLINK), Philippine Transport and General Workers Organization (PTGWO), SALIGAN, Trade Union Congress of the Philippines (TUCP), Workers Solidarity Network (WSN).