Business NEWS

The Philippine subsidiary of energy giant Royal Dutch Shell is stepping up on its diversification in power, with the launch of a new corporate vehicle – the Shell Energy Philippines Inc. – that will focus on investments in electricity generation sub-segment of the energy sector.

Sporadic power interruptions were experienced in Mindanao on Monday (January 18), following reported sabotage on a transmission facility of the National Grid Corporation of the Philippines (NGCP) – primarily Tower 60 of the 138-kilovolt Balo-i-Aurora line in Tangcal, Lanao del Norte.

State-run Power Sector Assets and Liabilities Management Corporation (PSALM) has cornered prepayment of P202.106 million from Sorsogon I Electric Cooperative (SORECO I), as part of the restructuring deal that the parties have entered into.

Geothermal investors in the country are batting for ‘insurance-type of incentives’ or ‘mitigation fund’ that seeks the “sharing of cost-risks” with the government, so investments in the sector could be reinvigorated.

Consumers will need to shell out more for their fuel budgets this week as the price of diesel products will be higher by P1.05 per liter; while gasoline product costs will rise by P1.00 per liter, according to the pricing adjustment announcements of the oil companies.

The country’s love affair with coal technology is far from over, as the current official project list of the Department of Energy (DOE) still casts 11,289 megawatts of committed and indicative coal plant projects due for developments in the short to medium term.

The Energy Regulatory Commission (ERC) is still firming up the pricing formula for the targeted ‘tariff ceiling’ that shall be instituted for the 2,000 megawatts of renewable energy (RE) capacity auction targeted by mid-June this year.

The Department of Energy (DOE) has prescribed capacity requirements that power investors  must comply to qualify for “energy project of national significance” (EPNS) status.              

The financial burden of consumers on their fuel budgets will be aggravated this week as the cost of gasoline and diesel products are expected to increase this week.

With plant shutdowns bringing power grids to breaking points again, the Department of Energy (DOE) nudged power plant owners to re-align their maintenance activities to avoid brownouts during the summer months.          

The interface of the information technology (IT) platform for the permitting of energy projects under the Energy Virtual One-Stop Shop (EVOSS) is targeted for completion this year, according to the Department of Energy.

Power utility giant Manila Electric Company (Meralco) has applied for regulatory approval on its proposal to refund to its customers P13.885 billion cost over-recoveries arising from the implementation of its actual weighted average tariff (AWAT) within the lapsed regulatory period from July 2015 to November 2020.

SN Aboitiz Power-Benguet Inc. (SNAP-Benguet), which is a subsidiary company of Aboitiz Power Corporation in a tie-up with Norwegian firm SN Power, has secured P18 billion unsecured notes facility from two local banks, and it utilized the proceeds to prepay loans for its hydropower facility acquisitions.

The Department of Energy (DOE) is reinvigorating the investment landscape so it can entice massive capital flow for P10 trillion worth of energy projects that had been cast under the updated Philippine Energy Plan (PEP).

A price-setting and regulation of liquefied natural gas (LNG) procured through third party access (TPA) shall be subject to a regulation of the Energy Regulatory Commission (ERC), which shall also be crafting the warranted TPA Code for the industry.

Existing generating facilities with definitive expansion plans will be excluded from the coverage of the coal moratorium policy that was finally firmed up by the Department of Energy (DOE) in an advisory that it issued this week.

Leading oil firm Petron Corporation rescued the country’s only petroleum refining facility from near-shutdown after securing approval on its application as registered enterprise of the Authority of the Freeport Area of Bataan (AFAB).

Consumers will experience another pinch in the pocket this week as the price of gasoline will rise by P0.85 per liter; and diesel by P0.30 per liter, as announced by the industry players.Kerosene, which is the other fuel commodity retailed at the pumps, will also increase by P0.25 per liter, according to the oil companies.