SC-voided ERC order means ₧22.4-B burden By Lenie Lectura @llectura
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CALIFORNIA’S DEATH VALLEY SIZZLES AS BRUTAL HEAT WAVE CONTINUES
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HE Energy Regulatory Commission (ERC) is set to release an order that would effectively increase electricity rates brought about by a 2022 Supreme Court decision that nullified the agency’s 2014 order regulating the prices in the Wholesale Electricity Spot Market (WESM) for November to December 2013 supply months. “We have already made the compu-
tation. I don’t want to release a number yet, but we are actually finished. It was Iemop [Independent Electricity Market Operator of the Philippines] that made the simulations. It is likely that we will have a two year, threeyear spread,” said ERC Chairperson Monalisa Dimalanta. The amount that could be passed on to customers based on previous estimates when the SC released its July 2022 decision is estimated at anywhere from P17 billion to P22.4 billion.
“Yes, it’s a huge amount. Definitely, it can’t be implemented in one year or two years. So, it’s likely a three-year spread,” said Dimalanta, while adding that implementation could start next year. It may be recalled that the ERC capped the WESM prices in those two months of 2013 to address the abnormal spike and unreasonable prices of electricity imposed by power generation companies (gencos), which were being probed for alleged price manipulation in the spot market dur-
ing the maintenance shutdown of the Malampaya gas facility. From an estimated P24 billion, the impact to consumers brought about by very high WESM rates was reduced to P7 billion because of the ERC order. WESM is the country’s trading floor for electricity. However, the SC said that the ERC order was issued even if the agency was still in the process of completing its findings on the possible abuse of market power. See “SC-Voided,” A2
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REMITTANCES INCH UP w
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Tuesday, July 18, 2023 Vol. 18 No. 274
P25.00 nationwide | 2 sections 20 pages |
BY 2.9% IN MAY TO $2.78B T
By Raadee Sausa
HE remittances made by overseas Filipino workers (OFWs) in May reached $2.78 billion, higher by 2.9 percent than the $2.70 billion registered in the same month last year, data from Bangko Sentral ng Pilipinas (BSP) showed on Monday.
In a statement, the BSP attributed the increase in personal remittances in May to higher remittances sent by 1) land-based workers with work contracts of one year or more and 2) sea- and land-based workers with work contracts of less than one year. “For the first five months of the year, personal remittances grew by 3.1 percent to $14.46 billion, from $14.02 billion posted in the comparable period in 2022,” it said. Of the personal remittances from OFWs, cash remittances coursed through banks rose by 2.8 percent to $2.49 billion in May 2023, from the $2.43 billion recorded in the same month last year, data showed. Cash remittances expansion in May 2023 was traced to the growth in receipts from land- and sea-based workers. “On a year-to-date basis, cash
remittances reached $12.98 billion, 3.1 percent higher than the year-ago level of $12.59 billion,” the BSP said. The growth in cash remittances from the United States (US), Singapore, and Saudi Arabia contributed mainly to the increase in remittances in the first five months of 2023.
Country sources
MEANWHILE, in terms of country sources, the US accounted for the highest share of overall remittances during the period, followed by Singapore, Saudi Arabia and Japan. There are some limitations on the remittance data by source. A common practice of remittance centers in various cities abroad is to course remittances through correspondent banks, most of which are located in the US. See “Remittances,” A2
‘ASIAN EMERGING MARKETS TO BENEFIT FROM GOODS TRADE’ By Andrea E. San Juan
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NITED Kingdom-based think tank Oxford Economics said that while global trade has surpassed the pre pa ndem ic e x pec t at ion s, emerging markets in Asia might be among those that will stand to benefit from goods trade as these markets have maintained their new exporting records. “Global supply-chain pressures are now lower than precrisis and global trade volumes remain well above precrisis levels. Goods trade benefited emerging markets [EM] in the last year or two, with terms of trade rewarding commodit y traders and major manufacturing hubs, especially in EM Asia, maintaining their new exporting records,” Oxford Economics said in its Research Briefing on Monday. The think tank showed that EMs benefited the most from the increased global goods trade of the post-pandemic era. Meanwhile, advanced economies’ (AEs) spending spree during the initial
phase of the pandemic recovery certainly played the biggest role. It noted that increased merchandise exports persisted for the EMs even now that most of the “consumer bonanza” is over. Meanwhile, the think tank said while emerging markets business sentiment “rebounded” strongly in 2023, it’s largely thanks to China’s reopening. However, while short-term leading indicators suggest this is “likely to persist” a while longer and it might be EMs that currently stand to benefit relatively from goods trade, it’s only the advanced economies’ healthy demand that makes it possible. According to the Philippine Statistics Authority (PSA), the country’s export earnings posted a positive growth for the first time in six months in May 2023, with electronic products accounting for 57.5 percent or the largest share in the country’s exports pie. The People’s Republic of China was the country’s top export and import destination. See “Asian,” A2
KADIWA TREATS The Kadiwa Market at Pasay City Hall offers a range of fresh vegetables, fruits, and rice priced at just P25 per kilo, delighting buyers with its affordable offerings. Kadiwa, a marketing initiative by the Department of Agriculture through Agribusiness and Marketing Assistance, aims to empower farmers by establishing a direct and efficient farm-to-consumer food supply chain. By cutting out intermediaries, this model allows producers to earn more from selling their produce directly to consumers, benefiting both farmers and buyers alike. NONIE REYES
ARTA vows faster strategic investments flow in EO 18
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HE Anti-Red Tape Authority (ARTA) said it is “all geared up” for the full implementation of Executive Order (EO) No. 18, a measuremeanttofast-trackandstreamline processes for strategic investments. “ARTA is all geared up for the full implementation of EO No. 18 to improve ease of doing business in the country and to promote economic development,” ARTA Secretary Ernesto V. Perez said in a statement on Monday. The EO, signed by President Ferdinand R. Marcos Jr. on February 23, 2023, was launched last July 13 in Pasay City. The country’s anti-red tape watchdog said it is “confident” that the measure will help the Philippines achieve its goal of becoming a “top investment
destination in the region.” Perez stressed, “We are ready to take on the job of promoting foreign direct investments and streamlining the government approval and registration processes for strategic investments.” ARTA bared its mission under EO No. 18. To ensure that government processes are efficient, effective, and accessible to all, it noted, “a timeline of 3-7-20 is imposed to the implementation of EO No. 18 to secure that all simple transactions are responded in three working days, while complex transactions are responded within seven working days, and highly technical transactions are responded by 20 working days.” See “ARTA,” A2
PESO EXCHANGE RATES n US 54.3840 n JAPAN 0.3921 n UK 71.2213 n HK 6.9594 n CHINA 7.6152 n SINGAPORE 41.1594 n AUSTRALIA 37.1878 n EU 61.0787 n KOREA 0.0429 n SAUDI ARABIA 14.4977 Source: BSP (July 17, 2023)