Monday 25 April 2011

PIA Dispatch - Monday, April 25, 2011

Blackouts may hit parts of Mindanao tonight

Malacañang announced the possibility of electric interruptions affecting several parts of Mindanao due to the delay of repairs being undertaken in one of the Pulangi hydro-power plants in Bukidnon.

Energy Secretary Jose Almendras told a news briefing in Malacañang on Monday that the National Power Corporation was working overtime to complete the repair and maintenance works being conducted on Pulangi IV hydro-power plant.

“Some of the repairs and maintenance work that we did in Pulangi is slightly delayed so whether they finish this afternoon or not will determine if there will be brownouts in Mindanao during the peak times of about 5:30 to 8:00 tonight,” Almendras said.

Pulangi IV Plant Manager Rudy P. Brioso explained that the power plant was shut down last week to allow engineers to inspect the unit’s structure for cracks and leaks.

He added that the power plant has not been inspected for the past 25 years since its commissioning, and that “a complete drawdown” or draining of the water is needed so that a thorough inspection of the structure can be conducted.

The Pulangi hydro-power plant, which began operations in 1985, generates and contributes 255 megawatts (MW) to the Mindanao electric grid. (PCOO)


Government to secure exploration contracts off Palawan waters using Malampaya funds

Due to international interests in exploring the sea off Palawan, government has decided to use the Malampaya fund to provide security to multinational companies that will explore the area.

“We are looking at using the Malampaya fund for the security of multinational companies and the President wants the DOE [Department of Energy] to play a role in that,” Energy Secretary Jose Rene Almendras said at a press briefing in Malacanang on Monday.

Almendras said that President Benigno Aquino III’s pronouncement on leveling the playing field for the businesses in the country has generated so much interest on the Philippines, particularly in the energy sector.

“This is one of the achievements of the Aquino administration," said Almendras. "The Aquino administration has shown the world that we, as we said, have leveled the playing field. Because of this, there’s a flood of exploration potentials. So we need to ensure the security of all these new exploration areas."

Some quarters in the energy sector have been complaining about losing people and equipment because of the growing interest in explorations, the energy chief said.

Because of these new interests, Almendras said they have made recommended to augment the security of the service contracts that have been previously awarded, as well as the 15 other service contracts that will be bidded out this coming July.

Right now there is so much international interest in the 15 new service contracts that are going to be bidded out,” he said.

There’s a need to strengthen security because companies exploring the area are bringing in equipment or investing hundreds of dollars or even billions of dollars, continued Almendras.

The Department of National Defense has provided a security plan, he said. The DND will determine the number of radar stations, boats and choppers that will be needed.

In the past, the Malampaya fund has been used for many things, even matters not related to energy or energy-related security although the establishment of the fund does not categorically state that it can only be used for energy-related or energy security related matters.

Almendras said they will wait for the actual issuance of an executive order authorizing the use of the fund for such initiatives. An EO is needed for the release of the Malampaya money so that everything will be documented, he said. (PCOO)


Malacañang bares security features of 'Pantawid Pasada' Smart cards

The Aquino government bared the added security features of the “Smart cards” to be used by beneficiaries under the Public Transport Assistance Program that aims to provide subsidy to a portion of the average consumption of jeepney and tricycle drivers amid escalating fuel costs.

In a media briefing at the New Executive Building in Malacañang on Monday, Energy Secretary Jose Rene Almendras made it clear that “Smart cards” can only be used three to five days after its issuance as part of its anti-pilferage features. This, he said, will ensure that the cards have already reached its intended recipients.

“Liwanagin po natin, the minute the card is issued hindi po pwedeng dalhin agad sa gas station at gamitin… there is a safety feature that we are going to advice the drivers that they could only use it between 3 to 5 days after getting it”, Almendras said.

“This is because, we want to prevent the pilferage of the card. We will activate the card and load it only when we are sure that it has reached the intended recipient,” he stressed.

Almendras noted that while in transit, the cards are not yet loaded with cash making it impossible for some unscrupulous groups to tamper it.

“So yung sa mga may plano po magnakaw ng card while it is in transit, wala po ng laman yan at wala po kayong makukuha dyan kasi hindi po kakargahan iyan hangga’t di umaabot sa dapat patunguhan,” Almendras said.

It will be recalled that on April 1, President Benigno S. Aquino III signed Executive Order No. 32 instituting the Public Transport Assistance Program, commonly known as “Pantawid Pasada” program.

The Pantawid Pasada fund will be sourced out from the Special Account in the General Fund (SAGF) of the Department of Energy.

Three government agencies, namely the Department of Transportation and Communications (DOTC), Department of Finance (DOF), and the DOE, were jointly authorized, as per EO 32, to determine the monthly funding requirement of the 450-million peso program.

A total of 150 million pesos will be allotted to subsidize the fuel consumption of tricycle drivers which will be carried out through the local government units.

Three hundred million pesos will be allocated for the subsidy of the average consumption of jeepneys.

Almendras noted that the “Smart cards” will be assigned to the vehicle using its plate number and type as reference. (PCOO)


DOE asks oil companies to roll back its prices

Oil companies that increased their pump prices last week must roll back this week following a government calculation, according to the Department of Energy.

“Our view is oil prices should rollback depending on how much you increased last week. So, if you increased last week, your rollback should be higher. If you did not increase, then it should be lesser than those that did the increase,” Energy Secretary Jose Rene Almendras told reporters in a press conference in Malacanang on Monday.

Almendras said that based on their calculations last week, gasoline should have gone up by a maximum 39 centavos noting that an increase of up to 60 cents is too much.

There is an agreement with the oil companies in rounding off calculations and Almendras said the 39 cents maximum must only be translated to 40-centavo increase. But he noted the increase went as high as 60 centavos.

“For diesel, our calculations showed it should have gone up by only 16 centavos. So, you round it off to 20 centavos, but some companies went as high as 25,” he said.

And because the DOJ-DOE Task Force is now in place, Almendras said they want all companies that increased more than what they felt was appropriate to explain in writing and submit it to the task force.

The energy chief said that if the joint task force feels that there is an abuse, a case in court will be filed, and subsequently, the appropriate action will be followed depending on the law.

But he noted: “We have to receive their reply in writing. The task force has to evaluate, has to do the comparatives, has to look at the numbers, and then make an opinion. Based on that opinion will be the decision on how to pursue beyond that point,” (PCOO)