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Manufacturers temporarily forgo price increases — DTI
The Department of Trade and Industry has announced that several manufacturers have temporarily forgone their requests for price increases after Trade Secretary Alfredo Pascual requested them to be mindful of the consumer’s plight amid the skyrocketing prices that they have to endure these days, as a result of their meeting last Thursday afternoon. On 21 September 2023, the DTI convened a meeting with manufacturers of basic necessities and prime commodities, where a total of 29 manufacturers and two associations of canned sardines, coffee, processed milk, bread, salt, detergent, candles, condiments, bottled water, canned meat, toilet soap and batteries participated in the said dialogue. According to DTI Undersecretary Communications and Legislative Affairs Kim Lokin, Secretary Pascual’s meeting with manufacturers went well, as these firms are willing to hold off on a price increase for now. “Although of course, they raised concerns that on the production level, there is indeed an increase in cost. Sec Pascual is very appreciative of the gesture,” she said. Manufacturers assured On the other hand, the Trade chief assured manufacturers that he would also consider their plight, and the need to sustain their businesses and provide jobs. Lokin said the DTI will hold another round of consultations, especially for those who have serious or urgent concerns, which will be on a case-to-case basis. Further, the DTI undersecretary stressed that this does not mean that forgoing the price increase is definite until Christmas. “For now, we can say the manufacturers are willing to hold off any increase for as long as they can. It is difficult to say when they will adjust prices because the cost of raw materials and ingredients used are also subject to market forces. Sec Pascual would have to consider all stakeholders, although of course in his mind, consumers’ needs are paramount,” Lokin stressed. Concerns During the dialogue, manufacturers expressed their concerns about various issues, including the imposition of pass-through fees; lack of local supply of raw materials; the compliance requirements of other government agencies, and other regulatory concerns. As of 19 September 2023, 14 manufacturers of 46 Stock Keeping Units covering 10 categories of BNPCs requested retail price adjustments due to the high cost of major raw materials, packaging materials, fuel costs, wages, and other costs that affect the production of essential goods. In their statement, the Philippine Association of Meat Processors Inc. said that manufacturers of Noche Buena products decided to absorb the bulk of rising costs. “In our commitment to observing the Christmas spirit and ensuring everyone can enjoy the festival season,” PAMPI said. “We are working diligently to manage rising costs. Production costs have risen by an estimated 10-15 percent, most of these products will only see a modest price increase of 0-4 percent”, PAMPI added. Meanwhile, Pascual said he is also committed to closely working with the salt and canned sardine manufacturers to address their specific concerns. The DTI secretary ensured that all concerns raised were taken into consideration and vowed to support the manufacturing sector, urging them to go into value addition. The post Manufacturers temporarily forgo price increases — DTI appeared first on Daily Tribune......»»
‘GDP growth is lower than expected’ — Diokno
Finance Secretary Benjamin Diokno said revising the country's gross domestic product growth target range would be probable amid the slower-than-anticipated growth observed in the second quarter. Diokno said this during his weekly press briefing as the country experienced a GDP growth of 4.3 percent in the second quarter, which was lower than the market initially expected. This resulted in a year-to-date expansion of 5.3 percent. This performance represents a decline from the previous year's 7.5 percent growth and the 6.4 percent growth recorded in the first quarter of the current year. Diokno said that reassessing the GDP target range would be considered in one of the quarterly meetings of the economic managers if achieving the current range becomes unlikely. He also mentioned that the Development Budget Coordination Committee meets at least quarterly to assess if their target range is still feasible or not. "We actively keep an eye on prices and employment. We make the necessary revisions if adjustments are required," the Finance Secretary said. Diokno underscored the need for the economy to grow by at least 6.6 percent in the latter part of the year to meet the objective, affirming that the target is still feasible. "The economic team is now focused on addressing the risks to growth, namely inflation and government underspending," Diokno stressed. The Finance Chief further explained that government underspending affected the country's economic growth and that 20 percent of the country's GDP is attributed to government expenditure. Diokno said that the country's growth rate would be higher by another 1 percent if the government agencies would increase their spending, citing a study from the Department of Budget and Management. Hence, he urged the government entities to speed up their expenditure and expedite the implementation of projects and endeavors, especially in the realm of infrastructure, in the latter part of 2023. For context, DBM issued Circular Letter 023-10 requiring several government agencies to submit their "catch-up" plans by 15 September. Circular Letter 2023-10 mandates the government entities to carry out the projects approved in the annual budget and swiftly produce outcomes to support strengthening resilient economic growth. The post ‘GDP growth is lower than expected’ — Diokno appeared first on Daily Tribune......»»
Short-circuited reforms
Judicial intervention in business transactions never had a stronger impact on Filipinos than the effect of the Court of Appeals stopping the Energy Regulatory Commission, or ERC, from compelling San Miguel Corp. power units to honor their contracts with Manila Electric Co. About a month ago, the CA handed down a permanent injunction on the consolidated cases of SMC units South Premiere Power Corp. and San Miguel Energy Corp. to overturn the ERC’s rejection of petitions to suspend their straight-price contracts. Energy Secretary Raphael “Popo” Lotilla said in a recent interview with Daily Tribune’s Straight Talk the Solicitor General will continue to challenge the injunction order up to the Supreme Court. “We don’t want the courts to be second-guessing the decisions of administrative bodies like the Energy Regulatory Commission,” according to Lotilla. The straight pricing regime in the power sector should have complemented the policy of the Department of Energy to move away from subsidies in the cost of electricity. Consumer groups had also filed a motion for reconsideration before the CA against the injunction. In July, the CA overturned the ERC to honor the SMC units’ straight-priced power contracts. The decision, consumer groups fear will open the floodgates to higher electricity costs, as SMC and other fossil fuel power generators will be emboldened to ask for more rate increases as they can apply for and possibly secure price adjustments during their contracts’ lifetime through the courts. The consumer groups consider the CA’s move a big blow to consumers since it negates the straight-pricing contracts. All straight-price contracts, 23 based on ERC records, are now at risk of price adjustments. In his recent State of the Nation Address, President Ferdinand Marcos Jr. indicated the goal of achieving competitive pricing for electricity, which will be negated by the CA’s injunction order. Consumer groups said the injunction order allowed SMC to ultimately hijack bidding systems for power supply agreements that are in place to protect consumers. SolGen Menardo Guevarra will submit the challenge based on the position that the injunction order interferes with administrative functions. “We will not see an immediate impact of the decision but it will affect prices because they involve fix-rate contacts between SMC and Meralco,” according to the energy chief. “The Solicitor General’s Office has made clear that the government opposed the issuance of injunction orders and therefore would be ready to appeal, I’m sure,” he indicated. Lotilla said the list of rules that the DoE issued was meant to address the problems in the industry and bring down rates to reasonable levels. “We have made the policy decision not to subsidize electricity, so we cannot think of telling the distributor or telling our people that prices are going to be drastically reduced,” Lotilla said. The initiative of the electricity distributor to bid out fixed price contracts would have offset the DoE plan to remove all forms of subsidies on electricity prices and thus make the monthly bills truly equitable. The market reforms have been thrown off course by the court injunction which has had the effect of usurping the authority of a quasi-judicial body while clearly favoring SMC. The post Short-circuited reforms appeared first on Daily Tribune......»»
Expedited project implementation needed to achieve GDP target — DOF
The Department of Finance (DOF) said on Friday that the Philippine government intends to expedite the implementation of government programs and projects to achieve the full-year gross domestic product (GDP) target of six percent to seven percent. During the Philippine Economic Briefing in Cebu on Friday, Finance Secretary Benjamin Diokno said the government intended to stimulate growth in the second half of the year after the Philippine economic growth slowed to 4.3 percent in the second quarter from 6.4 percent in the first quarter. Diokno said the country's GDP would need to grow by at least 6.6 percent in the second half to meet the full-year goal target. "To do this, we will expedite the implementation of government programs and projects, provide fiscal stimulus to increase the productive capacities of the public and private sectors, and address the adverse impact of recent typhoons," Diokno said. "The economic team is closely monitoring domestic and external developments and stands ready to make policy adjustments to ensure that we attain our medium-term growth targets," he added. In a separate statement, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the country's 6 to 7 percent economic growth target for this year is still attainable if the government would avoid underspending. "Also, other than the government underspending, there is also a need to further lower inflation since these have been a drag on spending, especially consumer spending, whose share of GDP (gross domestic product) shrank to 68.8 percent versus 75 percent in the previous quarter," he said. Ricafort also cited the need to eventually bring down policy rates as higher interest rates also dragged on investments. He added that the economic growth might settle at 5 to 6 percent in the next quarters. "The 4.3 percent GDP growth in the second quarter of 2023, the slowest since the first quarter of 2021, could mathematically be the slowest for 2023 due to the relatively much higher base after the presidential, national, and local elections a year ago, given the one-time nature of election-related spending that is absent this year," he said. The post Expedited project implementation needed to achieve GDP target — DOF appeared first on Daily Tribune......»»
New record high: Phl debt at P14.15T in June
The Philippine national government's debt stock reached another record high of P14.15 trillion in June as new domestic borrowings exceeded payments made, the Bureau of Treasury said on Tuesday. Data from the state treasury bureau showed that the country's debt portfolio increased by P51.31 billion or 0.4 percent compared to the previous month, primarily due to the net issuance of domestic securities. Of the total debt stock, 31.4 percent was sourced externally, while 68.6 percent were domestic borrowings. The BTr said the country's domestic debt reached P9.70 trillion, P114.32 billion or 1.2 percent higher than the end-May 2023 level. For the month, domestic debt growth amounted to P114.32 billion due to the net issuance of government bonds driven by the NG's financing requirements. Year-to-date, domestic debt has an increment of P494.44 billion or 5.4 percent The national government's external debt amounted to P4.45 trillion, P63.01 billion or 1.4 percent lower than the previous month. "The reduction in foreign debt was driven by the impact of currency adjustments affecting both USD (US Dollar)- and third-currency equivalents leading to a decrease in the peso value of the debt, amounting to P69.98 billion and P8.28 billion, respectively," the BTr said, adding that these offsets the availing of foreign loans worth P15.25 billion. NG's external debt likewise increased by P234.55 billion or 5.6 percent from the end-December 2022 level. Total NG guaranteed obligations decreased by P9.98 billion or 2.6 percent month-on-month to P369.73 billion as of June 2023. For the month, the decline in guaranteed debt was attributed to the net repayment of both domestic and external guarantees amounting to P4.36 billion and P0.89 billion, respectively. "This was further trimmed because of the effect of currency adjustments on both USD- and third- currency-denominated guarantees amounting to P2.78 billion and P1.95 billion, respectively," BTr said. From the end-December 2022 level, NG guaranteed debt has decreased by P29.32 billion or 7.3 percent. In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the latest net borrowings of the national government may reflect the need to finance the still relatively wider budget deficits in recent months partly due to the lower individual tax rates for most income brackets since the start of 2023. "New official development assistance and other multilateral funding, especially for the country's various infrastructure projects, would also add to the country's outstanding national government debt in the coming months," Ricafort said. China Banking Corp. chief economist Domini Velasquez echoed Ricafort's comment in another Viber message, saying that the government had to incur debt in a high-interest rate environment in the first six months of the year to finance government projects and programs and augment budget deficits. "On a positive note, we think market interest rates are already on a downtrend as domestic inflation moves down and major central banks near the end of their tightening cycles. This will help dampen debt growth," Velasquez said. The post New record high: Phl debt at P14.15T in June appeared first on Daily Tribune......»»
LRT riders brace for fare hike
Passengers of Light Rail Transit Lines 1 and 2 should start allocating additional budget for their daily expenses as the line’s fare increase officially takes effect starting tomorrow, 2 August. The Department of Transportation’s Rail Regulatory Unit approved the petitions seeking to increase the trains’ boarding fee by P2.29 — with an additional 21 centavos for every kilometer traveled. The two line’s minimum boarding fees will now be P13.29 from P11, plus an additional P1.21 per km. traveled from P1 per km. The adjustments were supposed to be implemented sooner but no less than President Ferdinand R. Marcos Jr. appealed to the DoTr to defer the fare adjustment until it fully reassessed its economic impact on the riding public. Last month, the President approved the implementation of the delayed fare increase, citing the “improving” employment figures and easing headline inflation rates, which he said would allow passengers to cope with the fare increase. According to Light Rail Manila Corp., which operates the LRT-1, the company will use the earnings from the fare adjustment to deliver efficient services. “We are determined to give people back their time through efficient transport and put more value to every single peso that our passengers spend for every LRT-1 ride,” LRMC chief operating officer Rolando J. Paulino III said. “Despite the absence of fare adjustments in previous years, we have established major improvements in the 38-year-old railway line with the increase in trains deployed to service more commuters; improved headway or waiting time; station rehabilitation and expansion; and the construction of LRT-1 Cavite Extension Project,” he added. By Wednesday, LRT-1’s revised fare matrix will show a minimum fare of P14 and a maximum fare of P35 for Stored Value Cards or SVCs. On the other hand, Single Journey Tickets or SJT will range from P15 to P35. Meanwhile, in LRT-2, fares will now range from P14 to P33 for SVCs and P15 to P35 for SJTs. The current minimum fare for SVC is P12 and a maximum of P30, while SJT is at P15 minimum fare and P30 maximum fare. The post LRT riders brace for fare hike appeared first on Daily Tribune......»»
Passengers brace for LRT fare hike starting Wednesday
Passengers riding Light Rail Transit Lines 1 and 2 should start allocating additional budget for their daily expenses as the line's fare increase officially takes effect starting Wednesday, 2 August. The Department of Transportation’s Rail Regulatory Unit approved the petitions seeking to increase the trains' boarding fee by P2.29 — with an additional 21 centavos for every kilometer traveled. The two lines' minimum boarding fees will now be P13.29 from P11, plus an additional P1.21 per km traveled from P1 per km. The adjustments were supposed to be implemented sooner, but President Ferdinand R. Marcos Jr. appealed to the DoTr to defer the fare adjustment until it fully had assessed its economic impact on the riding public. Last month, the President approved the implementation of the delayed fare increase, citing the “improving” employment figures and easing headline inflation rates, which he said would allow passengers to cope with the fare increase. According to Light Rail Manila Corp., which operates the LRT-1, the company will use the earnings from the fare adjustment to deliver efficient services. “We are determined to give people back their time through efficient transport and put more value to every single peso that our passengers spend for every LRT-1 ride,” LRMC Chief Operating Officer Rolando J. Paulino III said. “Despite the absence of fare adjustments in previous years, we have established major improvements in the 38-year-old railway line with the increase in trains deployed to service more commuters; improved headway or waiting time; station rehabilitation and expansion; and the construction of LRT-1 Cavite Extension Project,” he added. By Wednesday, LRT-1’s revised fare matrix will show a minimum fare of P14 and a maximum fare of P35 for Stored Value Cards or SVCs. On the other hand, Single Journey Tickets or SJT will range from P15 to P35. Meanwhile, in LRT-2, fare will now range from P14 to P33 for SVCs and P15 to P35 for SJTs. The current minimum fare for SVC is P12 and a maximum of P30, while SJT is at P15 minimum fare and P30 maximum fare. The post Passengers brace for LRT fare hike starting Wednesday appeared first on Daily Tribune......»»
ARTA backpedals, nixes TOP-CRMS
The Anti-Red Tape Authority, or ARTA, made a surprising move in backtracking on an earlier approval of a port digitalization plan, apparently bowing to pressures from several powerful groups. ARTA’s about-face effectively shot down what could be the Marcos administration’s most potent anti-smuggling weapon. ARTA issued a memorandum last 25 July signed by ARTA director general, Secretary Ernesto Perez, in which it said its reevaluation of the Trusted Operator Program-Container Registry and Monitoring System or TOP-CRMS regulatory impact statement, or RIS, convinced it that reducing the cost of container deposits from the scheme was not accurate based on the benefit-cost analysis. Perez said the decision is “final” and denied bowing to outside pressures. “That’s our final recommendation unless either party will submit to us additional relevant documents,” Perez indicated. Part of the ARTA report reads: “Port congestion may not be used by PPA or Philippine Port Authority as a justification for government intervention,” with the proposed TOP-CRMS. It added that the PPA “cannot use congestion as a justification or basis to establish the proposed... TOP-CRMS.” The PPA which is the main beneficiary of the digitalization scheme indicated that it is studying its options. “We’ll study our options. As far as we are concerned, ARTA already issued a Good Practice RIS with a 36/40 rating for the TOP-CRMS program. I don’t think they have retracted that or recalled the rating which they previously issued,” PPA general manager Jay Santiago said. “So I don’t know what was the purpose of that ARTA memo nor its value or its effect on the previously issued Good Practice RIS rating. We submitted all required documents to ARTA sometimes twice even and they even consulted all stakeholders including oppositors before they issued the Good Practice RIS. The situation has not changed so we don’t understand what happened,” Santiago added. Complete reversal The latest ARTA memorandum is a complete turnaround from its 2 February evaluation which greenlighted the TOP-CRMS implementation and allowed the PPA to resume its suspended modernization plan. ARTA gave the program a rating of 36, meaning a “Good Practice RIS.” ARTA said in a February statement after it assessed the program, “PPA has provided concise and satisfactory evidence on all RIA sections. Hence, the RIS was assessed as Good Practice.” ARTA stressed there should be more regulations to address the current issue, which is also the leading cause of the problem. The PPA’s TOP-CRMS also meets ARTA’s criteria for cost-saving mechanisms, including the fee on container deposits and port access roads, and has reduced the dwell time of empty container returns to less than 72 hours. Under Section 6 of Presidential Decree 857, PPA must supervise, control, regulate, construct, maintain, operate, and provide facilities or services belonging to the Authority. Thus, under this mandate, TOP-CRMS will provide efficient port services to the public. Santiago said then, “With the approval by ARTA, I believe the concern on ease of doing business has been sufficiently addressed.” “PPA will continue to fine-tune the program, and the implementation of PPA AO No. 04-2021 and its IOG will be constantly monitored, and the necessary adjustments to the IOG will be made as necessary. TOP-CRMS seeks to remove the payment of container deposits and efficiently manage the return of empty containers. There have been a series of public consultations, and we have adjusted based on the need of the stakeholders,” Santiago added. Anti-smuggling initiative Ironically, ARTA reversed its TOP-CRMS recommendation a day after President Ferdinand Marcos Jr. warned in his State of the Nation Address that the days of smugglers and hoarders of agricultural products are numbered as he identified the proposed Amendment of the Anti-Agricultural Smuggling Act as a priority legislation. The Chief Executive said in Filipino, “One of the reasons behind the higher prices is that smugglers and hoarders manipulate the prices of agricultural products. We will run after them, and we will file charges against them. We will not let these practices continue. The days of the smugglers and hoarders are numbered.” The President is also the secretary of agriculture. The PPA’s TOP-CRMS is a government-owned container monitoring system providing a whole-of-government approach to tracking container movement and management by giving relevant government agencies access to information and even automating and streamlining their processes. The anti-smuggling feature of the TOP-CRMS preempts cargo diversion or diverting shipments to another warehouse with real-time container tracking. Law enforcers could quickly identify where the shipments are located, which port stakeholders said would eliminate “for hire consignees,” as all foreign-owned shipping containers, both laden and empty, are monitored. Similar to the tracking system now in use among private port operators, the technology makes it easy for investigators to identify and prosecute suspected smugglers. Pressure from smugglers Industry insiders suspect that a powerful group of smugglers is pressuring concerned government agencies and regulators to stop the implementation of the TOP-CRMS because it would have a profound negative impact on their illegal activities. More importantly, the TOP-CRMS can detect illegal contraband and prevent entry into the country’s ports. It can eliminate smuggled drugs from entering any country’s entry points, including illegal arms shipments and, God forbid, nuclear materials. The data collected by the system can be shared with concerned agencies in charge of tax collection, law enforcement, import permit authorization, trade department, anti-smuggling units, intelligence units, etc. The wealth of data from the system will provide the PNP, AFP, BOC, BIR, DTI, DA, DSWD, Intelligence Community, and other relevant agencies an efficient tool to deter all forms of smuggling activities. The post ARTA backpedals, nixes TOP-CRMS appeared first on Daily Tribune......»»
Who foots bill?
In the grant of certiorari, or in layman’s terms allowing the Court of Appeals to intervene in an Energy Regulatory Commission decision, the appellate court cited ERC’s “abuse of discretion amounting to lack or excess of jurisdiction.” Legal experts, nonetheless, said the situation could be the opposite with the CA undermining the mandate of a quasi-judicial agency in issuing its recent ruling. The CA made the writ of preliminary injunction permanent thus allowing business giant San Miguel Corporation to disregard ERC’s rejection of its price increase petitions that did not favor it. Moreover, the court’s 13th Division ruled to grant the price adjustment petitions of SMC units South Premiere Power Corp. and San Miguel Energy Corp., thus subverting the ERC which had ruled against the SMC appeals. The ERC, through Solicitor General Menardo Guevarra, had previously criticized the CA 13th Division’s grant of a writ of preliminary injunction or WPI as having “the immediate effect of prejudging the disposition of the main petition.” Former President Rodrigo Duterte, who is a former Davao City prosecutor, had condemned the indiscriminate dispensation of the WPI and/or temporary restraining order or TRO, particularly on a purely business matter. In the ERC case, the CA was able to take over the functions of the regulator using the strength of the WPI. In essence, it assumed the mandate of the ERC while the WPI was in effect, which is now permanent based on the recent ruling. Such omnipotence of the court triggered Chief Presidential Legal Counsel Juan Ponce Enrile to coin the word “Presidential Injunction” which was his way of criticizing the frequent overreach by the court. President Ferdinand “Bongbong” Marcos Jr. had also urged the court to review the TRO, saying that it would result in higher electricity bills. Guevarra, in the ERC’s motion for the CA to reconsider the grant of the WPI, said the “settled principle is that an injunctive relief will not be issued if it will result to a premature disposition or a prejudgment of the case on its merits.” The SolGen said that consequently, courts are “cautioned” against issuing a WPI and/or TRO when the issuance thereof “would have the result of disposing of the main case without trial.” Set aside by the CA ruling was the ERC order of 29 September requiring the SMC energy arms to strictly adhere to the terms and conditions of their power supply agreements with Meralco. “Thus, by granting the petitioner’s application for the issuance of the WPI, the Honorable Court, in effect, affirmed the petitioner’s act of terminating the PSA,” Guevarra said. He added: “The grant of the WPI had the same effect as though the instant petition was already granted upon a finding of grave abuse of discretion on the part of the ERC.” The CA ruling stated what SolGen had warned about and gave relief to SMC through the permanent injunction. The ERC now has the option to appeal the CA ruling and thereafter elevate the case to the Supreme Court. The sum of it is that SMC escaped its obligation under its contract with Meralco “to the damage and prejudice of the public consumers,” according to Guevarra. The court gave SMC the option of still pursuing the PSAs with the adjustments in price despite the provision on straight pricing that did not allow the pass-on of costs to consumers. But why bother, when it can also unilaterally terminate the contract through the court order disregarding the ERC ruling? As such, SMC can exercise its will freely on how to collect from electricity users the P15 billion or so that it claimed to have lost from the Meralco contract that it had won through a fair bid. The crux of the ongoing legal tussle is that it would be the consumers who would have to bear the consequences of bad business decisions that SMC made in the supply contract. The post Who foots bill? appeared first on Daily Tribune......»»
AMID CA ‘OVERREACH’ ERC ready for battle
The Energy Regulatory Commission is ready to contest before the Supreme Court the decision of the Court of Appeals voiding the regulator’s rejection of the rate increase petitions of two San Miguel Corporation power generation firms. Legal pundits said the CA usurped the ERC’s authority in its ruling setting aside the regulator’s late 2022 decisions to dismiss the petitions of South Premiere Power Corp. and San Miguel Energy Corp. to increase prices. Others called the CA decision an “overreach.” The two San Miguel subsidiaries cited a “change in circumstances” for turning their backs on their fixed-priced contracts with Manila Electric Company. San Miguel disclosed on Wednesday to the Philippine Stock Exchange the favorable decision it had received from the CA’s 13th Division composed of Associate Justice Victoria Isabel Paredes, as chairperson; and Associate Justices Mary Charlene Hernandez-Azura and Florencio Mamauag Jr., as members. Speaking to reporters on Thursday, ERC chairperson lawyer Monalisa Dimalanta clarified that the CA’s decision was not yet final since, under the Electric Power Industry Reform Act, only the Supreme Court can issue a permanent injunction on rate hikes. “There is no computation yet of the rate hikes. The decision is not yet final, and we will still file a motion for reconsideration. If granted, that’s another discussion. If denied, we will go all the way to the Supreme Court. I have not yet foreseen any rate impact,” Dimalanta said. Dimalanta added that the ERC, through the Office of the Solicitor General, will need to confirm if the CA is legally allowed to issue a final decision on rate hikes. “The CA can review any factual matter related to any rate hike petition, but we still want to clarify if the CA can decide with finality because it will change everything in the (power) industry. Under the EPIRA, only the SC can issue a permanent injunction,” Dimalanta explained. Unfortunate ruling According to Dimalanta, the CA’s decision was “unfortunate and disconcerting,” but the ERC will continue to uphold the law to “protect consumers.” “The ERC hopes the CA will revisit the records of the case as well as the arguments of the parties and uphold the commission’s ruling,” the ERC chief said. Consumers will not yet feel any adverse impact from the CA’s reversal of the ERC’s rejection of the temporary rate hike petitions, Dimalanta added. However, for San Miguel Global Power or SMGP, the holding firm for SMC’s power ventures, the CA’s decision “upholds the constitutional mandate of due process that guarantees the right to be treated fairly and effectively by quasi-judicial bodies like the ERC.” “It is regrettable that the ERC’s unfair decision early on to reject our joint petition with Meralco for a temporary rate hike — despite proving to be the least cost option at the time for power consumers — resulted in consumers shouldering the burden of much higher electricity rates,” SMGP said in a separate statement on Thursday. Nonetheless, the company said it still looks to “forge even stronger partnerships with the government, consumers, and other key stakeholders to help shape a more resilient and sustainable energy landscape for all.” Meanwhile, Meralco Head of Regulatory Management Jose Ronald Valles said the company will reach out to the CA to clarify some matters regarding the decision. “There are some matters in the decision that we feel need to be clarified. We are consulting with our lawyers on the legal remedies available to us, including an appeal to the Supreme Court,” Valles said. The 13th Division of the CA reversed the order of the ERC that rejected the temporary power rate hike petition filed by San Miguel Energy Corp. or SMEC and South Premiere Power Corp. or SPPC and Meralco. The CA decision granted the consolidated petitions for certiorari filed by SMEC and SPPC. It also favored the joint motion of SPPC and SMEC for a price adjustment with provisional authority and/or interim relief in ERC Case No. 2019-081 and ERC Case No. 2019-083. Likewise, the appellate court made permanent the preliminary injunction issued in favor of SPPC. The rate hike petition stemmed from SMGP’s report that its Sual Coal and Ilijan Natural Gas power facilities logged combined losses of P15 billion from 2021 to date due to high prices. As such, it sought temporary and partial cost recovery relief only for the losses it incurred from January to May, through a power rate increase on its contract capacity under the power supply agreement with Meralco to be amortized for six months. CA gets flak Consumer group Power for People Coalition criticized the CA magistrates for favoring the Ramon Ang-led San Miguel Corporation. “The Court of Appeals is supposed to uphold the interests of justice and the people, but it failed to do both in its decision granting SMC’s petitions in its cases before the ERC,” Gerry Arances, convener of the Power for People Coalition, said in a statement on Thursday. In its PSE disclosure, SMC said the CA annulled and set aside the ERC order dated 29 September 2022 in ERC Cases 2019-081 and 2019-083 due to a “grave abuse of discretion amounting to lack or excess of jurisdiction.” The CA’s joint decision dated 27 June 2023, received by SMC through the Poblador Bautista Reyes Law Offices, granted the consolidated petitions for certiorari filed by SMEC and SPPC. Arances said the CA effectively released SMC from any consequences of breaking a contract “simply because it is not earning enough from a commitment it has made voluntarily.” “We hope that the court will reevaluate, and we will file a motion for reconsideration to give the justices another chance to live up to their name,” Arances said. It can be recalled that the two power companies, along with Meralco, appealed for a temporary rate hike under their 2019 power supply agreement to help them recover from the unprecedented hike in coal prices. The CA denied the petition of SMEC for a temporary restraining order, but it allowed a TRO and later a writ of preliminary injunction or WPI on the ERC decision to deny an increase in SPPC’s power supply agreement or PSA with Meralco. The CA then consolidated the two rate increase cases under the division that granted the WPI. In its report to the bourse, SMC bared that the CA also favored the SPPC and SMEC’s joint motion for price adjustments without prejudice to any further requests for price adjustments. The further request for adjustments would be for June 2022 onwards for SPPC, from June 2022 to 25 January 2023 or the date of writ of preliminary injunction; and for SMEC, from June 2022 to the date of the finality of the joint decision. The post AMID CA ‘OVERREACH’ ERC ready for battle appeared first on Daily Tribune......»»
Kudos to Dr. Eric Olivarez
Doctor of Education and registered nurse Eric Olivarez, the mayor of Parañaque City, focusing solely on rendering good public service, transformed his department heads, led by City Administrator Voltaire de la Cruz, into a spectacular performance management machine increasing in the process the city’s assets and equity by 63.5 percent — from P16.63 billion in 2021 to P26.88 billion in 2022 — an increase of a whopping P10.25 billion after only 12 months as mayor. Dr. Eric, upon the advice of the resident auditor and assisted by the city’s chief accountant, began transferring land titles in the name of the city, under Section 148 of CoA Circular 92-386 dated 20 October 1992, which provides that, “Every local executive shall be immediately responsible for the proper and effective use and management of real estate that all real properties under his responsibility be registered under the Torrens Title System and safeguarded from squatters, unlawful occupants, or the like.” A total of P11,779,238.44 representing capital gains tax of P9,360,380.44 and documentary stamp taxes of P2,418,258.03 was utilized for the transfers of title, charged against an appropriation of P45,000,000, leaving an unexpended balance of P33,220,761.56. Transferring land titles in the name of the city is a tedious, delicate and serious matter oftentimes hindered by legal constraints. Chief accountants are reluctant to go into this process without the able guidance of a competent and experienced auditor whose expertise and knowledge based on law and jurisprudence is necessary. The Office of the Auditor recommended and management agreed that the general service office should complete the process of transferring the land titles in the name of the city, maintain properly and regularly the inventory of land titles, and ensure the safeguarding of the same. To clinch the whopping increase in assets and equity of the city, the City Accounting Office immediately effected adjustments to numerous entries to correct the over/understatement of accounts due to the implementation of CoA Circular 2020-008, or the One-Time Cleansing of PPEs, misclassification of accounts, and other errors in the recording of transactions. But Dr. Eric’s first love is taking care of the children of Parañaque City. The Commission on Audit gave Dr. Eric high marks for the Local Council for Protection of Children for which the city’s project/program/activities had a total budget of P21,442,822.92. Of the total budget, 79.24 percent of this budget was utilized resulting in the successful implementation of the program, affirming Dr. Eric’s natural skill as a registered nurse. In addition to repeating last year’s unmodified opinion on the fairness of the presentation of the financial statements of the City of Parañaque for this calendar year ended 31 December 2022, CoA also accorded the city government this recognition, a reason for the elation of the people of Parañaque City: “We acknowledged and commended the positive response of the management on our current year’s audit observation memorandum. The audit areas of these recommendations are part of the audit thrusts for CY 2022 which were already undertaken,” CoA stated. An unmodified opinion accorded by the auditor on the fairness of the presentation of the financial statements of the city for the calendar year ended 31 December 2022 means that the financial statements were prepared by the city management in all material respects in accordance with the applicable financial reporting framework. In the next episode, read more about Dr. Eric’s success, and the recognition-worthy performance of the city accountant and the resident auditor, as instruments of good local governance. (To be continued) The post Kudos to Dr. Eric Olivarez appeared first on Daily Tribune......»»
Policy rate hike possible by Aug
BSP could match any Fed rate decision to maintain healthy interest rate differentials to support the stability of the peso exchange rate, import prices and overall inflation Economists see a possibility the Bangko Sentral ng Pilipinas or BSP will increase rates next month to match a US Federal Reserve’s move to maintain a healthy currency exchange rate and rein in inflation. Dan Roces, chief economist at Security Bank, forecasted an increase of 25 basis points or bps which would bring the current guidance to 6.5 percent. “This may likely occur in August at 25 bps, following an anticipated similar-sized hike by the US Federal Reserve on 26 July,” Roces told the Daily Tribune last Friday. “BSP could match any Fed rate decision to maintain healthy interest rate differentials to support the stability of the peso exchange rate, import prices, and overall inflation,” Michael Ricafort, chief economist of Rizal Commercial Banking Corp., added. Effect on peso stength A higher BSP rate tends to strengthen the peso value against the dollar, making prices of imported goods and services cheaper while discouraging some consumers from borrowing from banks. BSP aims to bring down inflation further from the latest figure of 5.4 percent in June to 2 percent to 4 percent this year. Meanwhile, Roces said the likely higher BSP rate should impact Philippine banks only minimally and enable them to still fulfill their loan, deposit and savings obligations to customers. “The Philippines is in a good position to withstand another rate hike though, with a well-capitalized and liquid banking system and robust private consumption.” Roces said the inflation rate might accelerate again as businesses increase prices to meet even stronger consumer demand for goods and services to be likely driven by higher salaries. “Considering the June inflation print, wage and fare hikes, and the upside risks to the inflation outlook especially in the core, the data suggests that the BSP may consider further policy rate adjustments.” The Regional Tripartite Wages and Productivity Board in the National Capital Region last month approved an additional P40 to the minimum daily wage of workers in this area which will be effective starting 16 July. This came also amid a downtrend in the unemployment rate in the country. Employment situation improves Jobless rate further improved to 4.3 percent in May from 4.5 percent in April, according to the Philippine Statistics Authority. It was the second lowest jobless rate since April 2005. Considering the June inflation print, wage and fare hikes, and the upside risks to the inflation outlook especially in the core, the data suggests that the BSP may consider further policy rate adjustments. Similarly, the US had 497,000 more workers in the private sector last month which was double the forecast among market analysts. Global analysts said this tempts the Federal Reserve to resume raising its rate on 26 July to prevent inflation from rising again as an effect of higher consumer demand for goods and services. The local economists said BSP would consider this and the other aforementioned factors in deciding its own rate on 17 August. The post Policy rate hike possible by Aug appeared first on Daily Tribune......»»
‘Bato’ seeks PNP system adjustments
Senator Ronald “Bato” dela Rosa on Monday stressed the need to have the Philippine National Police adjust its system, limiting the deployment of patrolmen and lieutenants in its drug enforcement group. In a radio interview, Dela Rosa said the PNP should fix its administrative policies, including the vetting system to whom should be assigned in the PNP Drug Enforcement Group. “As I’ve said, there should be no patrolman or lieutenant assigned in PDEG. They should be exposed in the field and to difficult assignments first. The ones graduating from the academy should not be sent straight to PDEG. Their exposure is wrong,” said the lawmaker. Dela Rosa’s statements come after the controversy into the alleged cover-up in the 990-kilos shabu worth P6.7-billion shabu hauled in a buybust operation in Manila in October last year. The senator lamented how these junior cops are immediately exposed to the wrong system after being assigned to police seniors that are ninja cops, which refers to police officers involved in illegal drug activities. Former PNP-PDEG chief P/Brig.Gen. Narciso Domingo earlier admitted there were lapses in the entire operation during the Manila buy-bust, including the conduct of inventory on the scene following the confiscation of two kilos of shabu from then Police Master Sgt. Rodolfo Mayo. “I admit that there are lapses in our entire operation, but such judgment calls and procedural lapses were done by me in good faith based on the reports of my men,” Domingo said, adding that the 990 kilograms of shabu was later seized, several policemen has committed a violation for sneaking out about 42 kilos of the contraband. The post ‘Bato’ seeks PNP system adjustments appeared first on Daily Tribune......»»
Cops gear up for Barangay, SK polls
The Philippine National Police is making early preparations to assume election duties as a deputized agency of the Commission on Elections for the 2023 Barangay and Sangguniang Kabataan Elections scheduled on 30 October 2023. PNP chief Police General Benjamin Acorda Jr. said the Comelec Committee on the Ban on Firearm and Security Concerns convened it first meeting last 9 May 2023 presided by Commissioner Aimee P. Ferolino, CBFSC chairperson, with representatives from the PNP and the Armed Forces of the Philippines. He said that all operational planning and preparatory activities of the PNP are guided by Comelec Resolution 10902 that approved the calendar of activities for the 2023 Barangay and SK polls. Pursuant to Comelec Resolution 10902, the 90-day election period for the 2023 Barangay and Sangguniang Kabataan Election will commence on 28 August 2023 with the start of the period for filing of Certificates of Candidacy. Acorda said the PNP will strictly enforce all prohibited acts during the entire 90-day election period as enumerated under the Omnibus Election Code and Resolutions passed by the Comelec. “These prohibited acts include the bearing, carrying, or transporting firearms or other deadly weapons in public places including any building, street, park, private vehicle, or public conveyance, unless authorized in writing by the Comelec and also prohibited during this period is the use of security personnel or bodyguards by candidates,” said Acorda. Upon the request of Commissioner Ferolino, Acorda said the PNP is making some adjustments on administrative procedures and technical requirements in the processing of Comelec authority for exemption. The joint Comelec-PNP-AFP committee is set to hold a media event on 22 May 2023 to formally launch the information campaign for the 2023 Barangay and SK elections. Meanwhile, PNP spokesperson Col. Jean Fajardo said they will beef up their efforts in ensuring the peaceful and orderly conduct of the barangay and SK polls. “As we speak, our Directorate for Operation is closely coordinating with Comelec, but as of now we don’t have yet the figures as to the number of election areas of concerns that will be included in the color category, the yellow, green, orange and red,” Fajardo said. “We also expect this coming barangay elections although we know it will be quite hot when it comes to the local election that’s why this early the PNP prepared including the other security forces to make sure all risk factors will be determined as early as now so that those who are best practices and other police strategies to ensure that we have safe and secure elections will be implemented even prior to the declaration of the election period,” she added. The post Cops gear up for Barangay, SK polls appeared first on Daily Tribune......»»
Gov’t must remain vigilant vs Covid
Economists said the government must remain vigilant over the rising Covid-19 cases to avoid disrupting business activities again and dragging the momentum for bank loans. “Increasing Covid-19 cases may have an alternative impact with more cautious consumption. We will have to see and observe carefully,” Carlo Asuncion, chief economist of Union Bank of the Philippines, told the Daily Tribune last Friday. On the same day, the World Health Organization declared that Covid-19 is no longer a global emergency. However, the Department of Health reported local cases have risen, with 1,878 more cases last Saturday, nine deaths, and 10,195 active cases. OCTA Research group said this brought the Covid-19 positivity rate nationwide up to 19.3 percent and warned it could climb to 25 percent in Metro Manila. Keep numbers down Bank economists said the authorities must adopt ways to curb the spread of Covid-19 while ensuring projected economic growth will not be dragged. “There are higher Covid cases recently, but still among the lowest since the pandemic started and would remain manageable if hospital bed utilization remains low and support further reopening of the economy towards greater normalcy with no more Covid restrictions,” Michael Ricafort, chief economist of Rizal Commercial Banking Corporation, said. For now, economists believe the slowing inflation and high vaccination rate in the country remain strong indications of vigorous business activities and possibly higher economic growth. “Unless hospitalizations dramatically increase, we think this would not significantly disrupt economic activities and affect loan demand, especially since the majority of the population are vaccinated,” Domini Velasquez, chief economist of China Banking Corporation, said. Ricafort added, “Easing inflation would fundamentally reduce interest rates that, in turn, reduce borrowing costs for the coming months, thereby supporting faster loan demand.” Inflation rate last month decelerated to 6.6 percent last month from 7.6 percent in March and the record-high 8.7 percent in January. The Bangko Sentral ng Pilipinas aims to slow inflation further to 6 percent this year and 2.9 percent in 2024 through policy rate adjustments. The post Gov’t must remain vigilant vs Covid appeared first on Daily Tribune......»»
Maynilad, MWC shelve rate adjustments for 2021
Maynilad Water Services, Inc. (Maynilad) and Manila Water Company, Inc. are forgoing some water rate increases they are qualified to implement in the coming year, including the next tranche of the rate rebasing adjustment as well as the mandated Consumer Price Index (CPI) adjustment. This was announced separately by both companies on Tuesday. In a text message, Metropolitan Waterworks and Sewerage System (MWSS) Chief Regulator Patrick Ty said the MWSS-Regulatory Office (MWSS-RO) has been discussing this matter with both Maynilad and Manila Water since the start of this year. “We just received the proposals of the two Concessionaires and we are currently evaluating them,” Ty said. In a statement, Maynilad said that with this deferral, the company “hopes to alleviate the day-to-day struggles of its customers as they and the whole country strive to recover from adversity and rise stronger than before, ready to start anew”. “During these difficult times when no one is spared the economic impact of the COVID-19 pandemic, Maynilad is one with the government in finding ways to help our countrymen make the situation more manageable,” it also said. Manila Water, on the other hand, said “in the spirit of Bayanihan and to alleviate the plight of our customers due to the pandemic, Manila Water will not be implementing the rate adjustment in 2021 under the approved 2018 Rate Rebasing.” Done every five years, rate rebasing is review of water utilities’ past performance and the projection on their future cash flows. It is supposed to set the water rates at a level that would allow both Maynilad and Manila Water to recover their expenditures and earn a rate of return. For 2020, Maynilad and Manila Water also volunteered to defer the implementation of the next tranche of annual rate hike approved under the current rate rebasing period, which started in 2018. Their decision came as both companies were being scrutinized by no less than President Rodrigo Duterte for their allegedly onerous contracts with MWSS. To be implemented in tranches from 2018 to 2022, the approved increase in Maynilad’s rates under the fifth rate rebasing period would be P5.73 per cubic meter (/cu. m.). For this year, it was supposed to increase its rates by P1.95/cu.m, then another P1.95/cu.m in 2021. As for Manila Water, the increase in its rates under rate rebasing would play around P6.22 to P6.55/cu.m. This year, it was supposed to increase its rates by P2/cu.m, and another P2/cu.m by 2021. By 2022, depending on the medium-term water sources project that the company will be allowed to pursue, the Ayala-led firm could charge its customers an increase of P0.76/cu.m up to P1.04/cu.m. The CPI adjustment, on the other hand, is the annual inflation adjustment and takes place every January. Maynilad is the largest private water concessionaire in the Philippines in terms of customer base. It is the agent and contractor of the Metropolitan Waterworks and Sewerage System (MWSS) for the West Zone of the Greater Manila Area, which is composed of the cities of Manila (certain portions), Quezon City (certain portions), Makati (west of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon all in Metro Manila; the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite Province. Meanwhile, Manila Water caters to the East Zone concession area covering the Cities of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig and Marikina. It is also in charge of the southeastern parts of Quezon City, and Sta. Ana and San Andres in Manila. In the Province of Rizal, MWCI services the City of Antipolo and Municipalities of San Mateo, Rodriguez, Cainta, Taytay, Teresa, Angono, Baras, Binangonan, and Jala-jala......»»
Mixed adjustments in pump prices expected during first week of April
Oil companies are anticipated to introduce mixed adjustments in pump prices during the first week of April......»»
Church visits are allowed only until 10 p.m. – Police chief
CEBU CITY, Philippines – Church visits on Maundy Thursday will only be allowed until 10 p.m. the chief of the Cebu City police announced on Thursday, March 28. Police Colonel Ireneo B. Dalogdog, City Director of the Cebu City Police Office (CCPO) said that the public is not allowed inside religious places past 10:00 p.m......»»
Pentagon chief reaffirms support after latest China aggression in WPS
Austin emphasized US support for the Philippines in defending its sovereign rights and jurisdiction in a phone call with Defense Secretary Gilberto Teodoro on Wednesday. .....»»
Milk tariff collections rise by 31% to P2.4 billion
Revenues raised by the government from various imported milk products jumped by 31 percent to P2.36 billion in 2023, the highest in at least eight years, from P1.8 billion in 2022......»»