BTr rejects anew bids for 91, 364-day T-bills
MANILA - The Bureau of the Treasury (BTr) again rejected bids for the 91-day and 364-day Treasury bills (T-bills) on Tuesday but partially awarded the 182-day tenor after investors asked for high yields.The average rate of the six-month paper rose to 3.958 percent from 3.810.....»»
BTr rejects anew bids for 91, 364-day T-bills
MANILA - The Bureau of the Treasury (BTr) again rejected bids for the 91-day and 364-day Treasury bills (T-bills) on Tuesday but partially awarded the 182-day tenor after investors asked for high yields.The average rate of the six-month paper rose to 3.958 percent from 3.810.....»»
Full implementation of new lifeline rate delayed
The full implementation of the lifeline rate program, which seeks to provide qualified poor households with discounts in their electricity bills, has been moved anew to next year given the still low registration turnout......»»
Meralco rates down anew
Following last month’s reduction on electricity bills, Manila Electric Company customers should enjoy another round of cuts in their electricity rate this month due to lower generation charge. Meralco announced on Wednesday that the overall rate for a typical household in August will slightly go down by 29-centavo per kilowatt-hour or kWh to P10.90/kWh from July’s P11.19/kWh. The reduction, according to the company, will translate to around P58 reduction in the power bills of residential households consuming 200 kWh. With the latest adjustment, the combined reduction over the past two months now stands at P1.01 per kWh. Based on the data provided by Meralco, the generation charge had gone down for the third straight time this month; it dropped by 21 centavos/kWh to P6.39/kWh in August from P6.61/kWh in July. The Wholesale Electricity Spot Market charges also declined by P1.29 per kWh as demand decreased due to the onset of the rainy season. Charges from Power Supply Agreements or PSA also went down by P0.17 per kWh due to lower fuel prices and the peso’s appreciation which affected around 26 percent of PSA charges that are dollar denominated. On the other hand, transmission and other charges, which include taxes and subsidies, also registered a net reduction of about 8 cents. Following the new rules for the implementation of the lifeline rate program, Meralco also called on qualified customers, particularly beneficiaries of the Pantawid Pamilyang Pilipino Program and other marginalized households, to apply for the program to get discounts on their electricity bills. The post Meralco rates down anew appeared first on Daily Tribune......»»
Games SMC plays
Manipulating the system, using its sheer dominance of the electricity industry with the huge generating capacity at its disposal, has long been suspected of business giant San Miguel Corp. Think tank Center for Energy, Ecology and Development or CEED found instances in 2021 of unplanned power outages during the peak summer demand periods where SMC appeared to have generated maximum markups. Monitoring by the group showed that between 31 May and 6 June 2021, the Ilijan plant owned by SMC unit South Premiere Power Corp. experienced a supply shortfall that was augmented through the Wholesale Electricity Spot Market by SMC units Ilijan, the SMC Limay coal-fired power plant, and the Masinloc coal-fired plant. Later, between 12 and 18 July, Luzon was hit by yellow and red alerts due to another Ilijan failure. To its rescue came the same three SMC subsidiaries. When SMC Limay had a derating, Meralco bought electricity from SMC Limay and Masinloc through the spot market. The price at WESM, during a red or yellow alert, spikes which mean bigger returns for the suppliers and higher monthly electricity bills. According to CEED, in early 2022, the first of several outages occurred as six coal-fired power plants and one hydropower plant underwent simultaneous forced outages. At the same time, three coal-fired power plants and one gas-fired power plant derated their capacities on 26 March 2022. The electricity network operator National Grid Corporation of the Philippines declared a yellow alert after 2,834 megawatts, or MW, were removed from the Luzon Grid. The most recent occurrence of outages was a red alert declared in Luzon by the NGCP last 8 May as two units of Masinloc Power Plant with a combined capacity of 659 MW went on a forced outage. The Masinloc coal plant, according to CEED, underwent unplanned outages seven times; the Limay coal power plant and cogeneration power plant twelve times; and the Sual coal plant counted 10 disruptions. Allegations of gaming thus arise, which the think tank said cannot be overlooked, “as major power players such as SMC continue to report soaring net incomes despite their power generation assets going on unplanned outages regularly.” A deep dive into the outages data showed that there were several power players whose power plants underwent outages or deratings, while their sister companies supplied electricity to the WESM during the same period. According to the CEED, the generation companies that contributed to the effective supply of WESM during the series of yellow and red alerts were sister companies of the power plants that had caused the alerts in the first place. The same gaming allegations were brought against SMC regarding the bidding for Meralco contracts. Two SMC units, SPPC, and San Miguel Energy Corp. offered very low bids for straight pricing contracts of Meralco which were designed to prevent sudden increases in electricity rates. Three years into the 10-year contract, SMC sought a revision of the terms with the Energy Regulatory Commission, or ERC, citing an increase in international coal prices and supply restrictions in the depleted Malampaya natural gas field. ERC turned down the SMC petitions and directed the company’s units to follow the terms of its contracts. SMC did not ask for reconsideration but instead went to the Court of Appeals where it promptly obtained a temporary restraining order which was progressively upgraded to a permanent injunction that stopped ERC from implementing its decision. In short, SMC got what it wanted through the Court injunction that threw away the regulator’s ruling and disregarded its quasi-judicial function. Using its vast influence, SMC was able to tear up contracts that it did not like without suffering any consequences. That’s what absolute big business power can do, to the extent of destroying government institutions. The post Games SMC plays appeared first on Daily Tribune......»»
BSP holding variable rate repo auction
MALAYSIA — The Bangko Sentral ng Pilipinas plans to hold a variable rate reverse repurchase auction sometime in the upcoming quarter, with September being the latest possible date. In an economic briefing earlier this week, BSP Deputy Governor Francisco Dakila Jr. said this move aims to enhance monetary operations and adopt a more adaptable strategy to manage liquidity in the financial system. Dakila said the BSP will introduce the variable rate repo auction shortly, and he has confirmed that it could occur either in August or September. “It will be similar to the BSP bills auction,” he said. 2 tenors for debt papers The central bank conducts its Securities Facility every week, specifically every Friday. This facility offers two types of tenors: the 28-day and the recently introduced 56-day options. The Central Bank initially introduced the BSP bills in September 2020. Dakila mentioned that the BSP had initiated its transition by moving from accepting fixed-rate fixed-volume bids for the RRP to adopting a fixed-rate full-allotment auction. The final step in this process is to switch to a variable rate auction, expected to occur by the end of the third quarter. These enhancements aim to bring about a variable rate for the overnight RRP, which is known for being more adaptable to fluctuations in market conditions. The post BSP holding variable rate repo auction appeared first on Daily Tribune......»»
BSP to hold variable rate repo auction in August or September
The Bangko Sentral ng Pilipinas plans to hold a variable rate reverse repurchase auction sometime in the upcoming quarter, with September being the latest possible date. In an economic briefing earlier this week, BSP Deputy Governor Francisco Dakila Jr. said this move aims to enhance monetary operations and adopt a more adaptable strategy to manage liquidity in the financial system. Dakila added that the Central Bank will introduce the variable rate repo auction shortly, and he has confirmed that it could occur either in August or September. “It will be similar to the BSP bills auction,” he said. The central bank conducts its Securities Facility every week, specifically every Friday. This facility offers two types of tenors: the 28-day and the recently introduced 56-day options. The Central Bank initially introduced the BSP bills in September 2020. Dakila mentioned that the BSP had initiated its transition by moving from accepting fixed-rate fixed-volume bids for the RRP to adopting a fixed-rate full-allotment auction. The final step in this process is to switch to a variable rate auction, expected to occur by the end of the third quarter. These enhancements aim to bring about a variable rate for the overnight RRP, which is known for being more adaptable to fluctuations in market conditions. The post BSP to hold variable rate repo auction in August or September appeared first on Daily Tribune......»»
Gods in robes
When President Ferdinand “Bongbong” Marcos Jr. warned that the Court of Appeals’ ruling restraining the Energy Regulatory Commission from compelling units of conglomerate San Miguel Corp. to comply with their contracts will hurt consumers through higher prices, he was correct. The CA stopping the power supply agreements or PSAs through a temporary restraining order which was recently upgraded to a permanent injunction, is expected to trigger a chain reaction in the power industry. “(The court action) will cause further dislocations and possible price increases for power,” the President had said. Marcos added his hope that the “CA reconsider and include in their deliberations the extremely deleterious effect this will have on power prices for ordinary Filipinos.” With the CA injunction as a precedent, other power producers are expected to seek the same court accommodation on adverse decisions on price increases handed down by the ERC. When the SMC energy units participated in the bid for Meralco contracts, the terms and conditions presented to them were very clear. As part of a huge business concern, they knew the commercial risks that came with the contracts, and their bids were supposed to reflect such risks. The strange thing is that other power companies that had the good sense either dropped out of the competitive selection process or submitted prices that were more grounded on reality and made do with a straight pricing scheme. SMC gamed the system by submitting a very low bid to win the PSAs and later arm-twisted the ERC to allow an adjustment in the terms of its contracts. After the ERC refused to go along and rejected the petitions, SMC went straight to the CA which promptly issued a TRO that stopped ERC from implementing its ruling. The ERC decision compelled SMC to fulfill the terms of its contract which still had seven years to run. Consumers thus will have to pay for the cost of the relief the CA granted to SMC through higher monthly electricity bills since the recovery of its claimed losses will be through increased prices. The CA’s decision last week overturned the pro-consumer ruling of the ERC, which was the aspiration of the Electric Power Industry Reform Act or EPIRA. SMC, in effect, was able to pass on the financial penalties of bad business decisions to innocent Filipino consumers—especially when they are struggling because of rising inflation. Worse, the CA decision said the permanent injunction applied without prejudice to future rate adjustments of SMC units South Premiere Power Corp. and San Miguel Energy Corp., making the restraint on ERC indefinite when it came to the two SMC affiliates. The global outlook is that fuel prices will remain elevated for quite some time. In this case, SMC and other independent power producers can keep running to the ERC for tariff relief every time they incur significant losses. The court is then the next step, as a result of their injunction power, to stop ERC from disallowing their petitions. Instead of relying on their business acumen to head off losses because of unfavorable global turns, the generating companies place their bets on a court injunction. It did not matter that the injunction undermined the sanctity of contracts, the integrity of the bidding process, and the credibility of SMC’s other supply contracts, the status of which significantly impact consumer welfare. The issue goes far beyond the profit and loss statement of SMC since it has ethical, legal, and consumer welfare concerns tied to it and which the CA should have considered. The court injunction sent the message that power producers can unilaterally end a supply agreement when it no longer suits their business interests. The post Gods in robes appeared first on Daily Tribune......»»
IOU appetite remains high
The Bureau of the Treasury, or BTR, on Monday fully awarded bids for the government’s key Treasury bills. The 91-, 182-, and 364-day T-bills fetched average rates of 5.884 percent, 6.095 percent and 6.226 percent, all lower than previous auction results. Last week, the average rates for the 91-,182-, and 364-day T-bills settled at 5.973 percent, 6.266 percent, and 6.339 percent, respectively. The auction was nearly three times oversubscribed with total bids reaching P44.4 billion. The BTr raised the full program of P15.0 billion for the auction. In a comment, Rizal Commercial Banking Corporation chief economist Michael Ricafort said Treasury bill auction yields corrected lower week-on-week. Yields on downtrend “This is similar to the week-on-week downward correction in PHP Bloomberg Valuation Service yields after US Treasury yields also corrected lower after better US inflation data at a new 2-year low of 3 percent in June 2023, from 4 percent in the previous month and nearing the Fed’s target of 2 percent,” Ricafort said. “The lower T-bill auction yields could have also been supported by the strongest peso exchange rate versus the US dollar in more than three months recently, thereby could reduce import prices and overall inflation that could still ease further due to higher base effects,” he added. On 13 July, the peso closed at 54.51 to a US dollar, its best performance since 5 April. The post IOU appetite remains high appeared first on Daily Tribune......»»
FIT-All charge may still be suspended – ERC
The Energy Regulatory Commission will study the possibility of extending anew the suspension of the feed-in tariff allowance collection, which has helped lower electricity bills so far this year......»»
Meralco rates up anew in June
Customers of the Manila Electric Company, or Meralco, the country’s largest power distributor, should brace for about a 42-centavo increase in their power bills this June. The company announced Thursday that the overall rate for a typical household increased this month to P11.91 per kilowatt-hour, or kWh from May’s P11.49 per kWh. For residential customers consuming 200 kWh, the adjustment is equivalent to an increase of around P84 in their total electricity bill. Meralco attributed the rate increase to the completion of the last distribution-related refund in May, which was equivalent to P0.86 per kWh for residential customers. “These refunds benefited Meralco’s customers over the past two years as these helped temper increases in electricity bills at a time of financial distress and uncertainty for many,” Meralco Head of Regulatory Management Office Atty. Jose Ronald V. Valles said. From March 2021 until May, Meralco implemented four Distribution Rate True-Up adjustments totaling P48.3 billion which translated to about P1.80 per kWh refund for residential customers. According to Meralco, the rate increase would have been higher if not for the generation charge, which went down by P0.41 per kWh from P7.66 per kWh in May to P7.25 per kWh this month due to lower costs from its Power Supply Agreements and Independent Power Producers. Charges from PSAs and IPPs decreased by P0.58 and P0.58 per kWh, respectively, mainly due to improved average plant dispatch and lower coal prices. The share of the PSAs and IPPs in Meralco’s energy requirements during the period went up to 50 percent and 38 percent, respectively. Meanwhile, the spot market energy share was lower at 12 percent. The post Meralco rates up anew in June appeared first on Daily Tribune......»»
Remain vigilant vs deadly virus, says Go
Senator Christopher Lawrence “Bong” Go reminded anew the public to continue observing safety health protocols even as the World Health Organization declared an end to the Covid-19 as a “public health emergency of international concern”, which has been in place for over three years. The lawmaker — who chairs the Senate Committee on Health and Demography — also expressed gratitude to all medical frontliners who have served and sacrificed in order to save lives during the pandemic. On Friday, WHO director general Dr. Tedros Ghebreyesus highlighted the decline in deaths and hospitalization related to Covid-19, saying, “It is therefore with great hope that I declare Covid-19 over as a global health emergency.” Acknowledging WHO’s pronouncement, the Department of Health released a statement that the agency will convene with the members of the Inter-Agency Task Force for Emerging Infectious Diseases to reassess the country’s Covid-19 guidelines. In this regard, Go emphasized that while this is a welcome development, everyone must remain vigilant and responsible to prevent the spread of the virus from recurring. “The lifting of the global public health emergency status by WHO does not mean that we can let our guard down. Let us remain adherent to the basic health protocols,” Go said. The senator likewise continues to emphasize the importance of wearing face masks in preventing the spread of Covid-19 as he has been encouraging all Filipinos to wear face masks whenever they go out in public, even without mandatory policies in place. He also reiterated his call for eligible Filipinos to get inoculated against Covid-19, stressing the importance of vaccines in protecting individuals from the virus. Acknowledging the concerns and hesitations of some Filipinos about getting vaccinated, Go assured the public that the government has procured safe vaccines and underscored that the benefits of vaccination far outweigh the risks. For his part as a lawmaker, Go has been pushing for the enactment of two important bills that aim to strengthen the country’s capacity to prevent and respond to infectious diseases. These are Senate Bills 195 and 196, which seek to establish the Center for Disease Control and Prevention and the Virology Science and Technology Institute of the Philippines, respectively. If SBN 195 is passed into law, the CDC shall be the lead agency for developing communicable disease control and prevention initiatives. It will be primarily responsible for controlling the introduction and spread of infectious diseases in the country. Some of its primary functions will include policy and standards development, disease detection and surveillance, data collection and analytics, public health communications and research and evidence synthesis. Meanwhile, under the proposed SBN 196, VIP will serve as the principal laboratory of the country in providing virology laboratory investigations, research, and technical coordination of the entire network of virology laboratories nationwide. The proposed bill will also provide guidelines for the establishment and operation of testing, reference and biosafety Levels 1, 2, 3 and 4 research laboratories throughout the country. The post Remain vigilant vs deadly virus, says Go appeared first on Daily Tribune......»»
Demand for T-bills down anew
Demand for the government’s short-term securities declined for the sixth consecutive week amid signals of continued rate hikes from the Bangko Sentral ng Pilipinas as inflation remains stubbornly high......»»
Government rejects all bids for P50 billion T-bills, bonds
The government was not able to borrow P50 billion through the sale of short and long-term securities as an initial offshoot of another aggressive monetary policy move of the US Federal Reserve......»»
Pay teachers what they are worth : Villanueva
MANILA - The resumption of face-to-face (F2F) classes this week must bring to focus the hardships of the country's teachers, Senator Joel Villenueva said on Sunday.Villanueva made this remark as he pushed anew for the passage of bills that alleviate the.....»»
BSP 28-day bills rate rise anew
MANILA - The Bangko Sentral ng Pilipinas' (BSP) 28-day securities registered on Friday another rate increase even as demand remained high.Data released by the central bank showed that the average rate of the debt paper increased to 3.9762 percent from 3.7564 percent during t.....»»
BSP TDF rates rise anew
MANILA - The rate of the Bangko Sentral ng Pilipinas' (BSP) term deposit facility (TDF) rose anew on Wednesday and bids remained low.The average rate of the seven-day facility rose to 3.3839 percent from 3.2459 percent during the auction last July 20.Th.....»»
BSP s 28-day Bills rate jumps anew
MANILA -Rate of the Bangko Sentral ng Pilipinas' (BSP) 28-day bills rose on Friday in line with expectations for more rate hikes from the central bank.BSP data show that average rate of the debt securities, which is among the central bank's excess liquidity mopping tools, jumped to 2.8523 percent from 2.7914 percent during the auction last June 17.It lowered the offer volume by PHP10 bill.....»»
BTr rejects bids of 1-year T-bills despite drop in interest rate
MANILA - Bids for the Philippines' one-year Treasury bills (T-bills) were rejected on Monday even after the decline of the debt paper's interest rate after the auction committee noted low demand compared to the other tenors.However, both the three-month and six-month papers were fully awarde.....»»
BSP 28-day bills rates rise anew
MANILA - The Bangko Sentral ng Pilipinas' (BSP) 28-day securities registered oversubscription on Friday amid higher volume offer, and its interest rate jumped anew.Data released by the central bank showed that the average rate of the BSP bills, which is among the central bank's excess liquid.....»»
Meralco extends grace period anew
There will be no line disconnections for unpaid electricity bills this year as Manila Electric Co. extends the grace period until the end of January 2021......»»