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MANILA, Philippines – President Rodrigo Duterte has signed a law that spares Filipinos the burden of paying for certain costs in their electricity bill.
Senator Sherwin Gatchalian, chairman of the Senate committee on energy, announced on Tuesday, August 13, that Duterte has signed Republic Act No 11371 or the Murang Kuryente Act.
Duterte signed RA 11371 on August 8.
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In a blow to any hopes Cambodia may have had of mimicking the manufacturing and industrialisation might of Thailand or Vietnam, the head of the country’s electricity authority on Thursday (Aug 8) said that the cost of electricity in Cambodia will “never be as cheap” as in neighbouring countries.
The discouraging news for foreign investors and consumers came during a two-hour long defence by Electricite Du Cambodge’s (EdCs) director-general, Keo Rottanak, of it electricity meters.
Since Cambodia was hit with daily six-hour long black-outs in March consumers in their hundreds have been complaining on social media of higher electricity bills than for the similar period last year.
Denying any fault with the utility’s meters, Mr Rottanak explained that consumers were using more electricity and therefore their bills were higher.
“If you leave your computer plugged in and turned on; if you use a washing machine, then you will use more electricity and have a higher bill”, he explained repeatedly.
The explanation is not sitting well with many consumers, however, who point to 30 hours of less supply, but metered consumption 50 per cent or more above a similar period a year before with no major change in usage. Some even claim the increases have occurred despite taking active steps to reduce consumption following a higher than expected bill a month before.
In one Facebook discussion a consumer said “Our(sic) has increased 25% with a concerted effort to reduce usage[,] something fishy is definitely going on”.
Another said, “High electric bills from month of march to present. It’s almost tripled the price from the normal monthly bill (last year)”, with yet another stating “USD 1000+ for a 4,50sqm (about 48,400sq.ft) office working Monday to Friday”. One business owner said he had complained three or four times this year about his electricity consumption readings being higher than last year and each time EdC inspected the meter they said it was operating correctly.
Mr Rottanak said concerned consumers should could contact the hotline number and EdC will investigate their complaint. They should not complain on social media. People who were still unhappy after the inspection could buy a replacement meter, though no cost was provided. In Cambodia there is no independent meter testing body, and meters remain the property of EdC.
When AEC News Today contacted the hotline we were told to bring our EdC bill to the office where a form needed to be completed.
To assist low-income earners, particularly garment workers, the power company had installed some 30,000 new power meters Mr Rottanak said, in the process disconnecting and prosecuting people with unapproved connections.
Landlord installed sub-meters on the tenant side of a lawful connection are not subject to regulation however, as is how much landlords can charge. Tenants being charged double the EdC rate is not unheard. However, without an EdC bill a complaint cannot be lodged, leaving private renters at the mercy of landlords who pocket the difference as a tax-free bonus.
Electricity prices were lowered at the start of this year as part of the ruling Cambodia People’s Party (CPP) “sharing policy” promised before last year’s July 29 national elections.
Those using up to 10kWh per month saw prices drop from KHR 480 to KHR 380 (about $0.12 to $0.10) per kWh, while those using more than 200kWh per month saw the price reduced from KHR 770 to KHR 740 ($0.192 to $0.185) this year, with a KHR 10 ($0.003) per kWh cut in 2020. For consumption of between 11 and 15kWh per month the price drop from KHR 610 to KHR 480 ($0.153 to $0.12).
Medium voltage commercial users pay KHR 540 ($0.135) per kWh, while 22kVA commercial users pay KHR 636 ($0.1590) per kWh. Electricity costs industrial usersKHR 440 ($0.1470) per kWh for 22kVA. For 2020 these rates will drop by between KHR 10 and KHR 20 ($0.003 to $0.005).
By comparison the residential electricity price in Thailand ranges from Bt 3.5 to Bt 4.42 ($0.105 to $0.143), while the residential price for electricity in Vietnam ranges from VNĐ1,678 per kWh to VNĐ2,927 ($0.072 to $0.126).
The high cost of Cambodia electricity compared with its neighbours is one of the most frequently cited disincentives by foreign investors. The greater ease of doing business and an available pool of skilled workers, albeit it at higher salaries, in neighbouring countries is an added bonus for some.
For investors from other countries Cambodia’s higher electricity costs are offset by other benefits, including concessions on exports to the EU under the Everything But Arms (EBA) scheme, and to the USA under the Generalised System of Preferences (GSP) scheme.
However, Cambodia risks losing access to both over human rights concerns and a severely constricted political and social space, raising the price of goods in those markets.
About 90 per cent of Cambodian exports are covered by the two schemes and in 2018 about 34 per cent of Cambodia’s total exports worth about $4.2 billion went to the EU, with an additional 23 per cent going to the US.
Already threatened by Bangladesh where electricity costs $0.09 per kWh and a new connection take about 150 days compared to 179 days in Cambodia, electricity prices remaining uncompetitive with either Thailand or Vietnam is not good news for Cambodian manufacturers.
In the first sign that the government is at least bracing itself for hard times ahead, The Phnom Penh Post (the Post) last week published details of what it said was drawn from a 27-page economic report prepared for Prime Minister Hun Sen in June.
The report, the Post said, forecast Cambodia’s economy growth to contract to 6.5 per cent in 2020, a 13.33 per cent fall on 2018’s 7.5 per cent growth. Economic growth for 2019 is already subdued over last year, forecast at 7.1 per cent.
According to the Post, Cambodia’s insecure supply and high cost of electricity, a weak transport and logistics system, slow economic diversification, and a narrow economic foundation were all factors that make Cambodia’s economy particularly vulnerable.
Yesterday (Aug 12) the Garment Manufacturers Association of Cambodia (GMAC) said that loss of the EBA will “result in large job losses across the garment, footwear, and travel goods labour force”.
Some 750,000 Khmer are directly employed in these sectors, supporting about three million family members. With high electricity prices to continue going forward the question of how these manufacturers will remain competitive remains unanswered.
At the media conference Mr Rottanak refused to provide journalists with his telephone number for fact checking purposes claiming it would be “inappropriate”. He didn’t read emails, he said.
The media — and anyone else needing information about EdC — should contact the telephone hotline, which he said was a citable source the media could use, or visit the website (which is only in Khmer language). Questions emailed to EdC via the address on its website were not responded to.
The EU will make its announcement on Cambodia’s continued access to the EBA in December, with the result not coming into effect for six months after that.
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TENAGA Nasional Bhd (TNB) will remain a monopoly in Malaysia’s electricity business despite proposed impending changes to the market, while there is no rating impact from the company’s proposed internal reorganisation, according to Malaysian Rating Corp Bhd (MARC).
The rating agency said TNB’s reorganisation — namely, the transfer of its domestic power generation and electricity retail businesses to two new wholly owned subsidiaries — will have no material impact on its overall credit profile.
“TNB will maintain its monopoly status in electricity transmission and distribution in Peninsular Malaysia and Sabah, and have significant electricity generation capacity through its subsidiaries,” it said in a statement last Friday.
MARC expects post its reorganisation, TNB would own a significant portion of the group’s regulated assets and generate the majority of group profitability as it will maintain its single buyer status.
The rating agency continues to impute the high likelihood of government support due to TNB’s role as Malaysia’s principle energy provider and the government’s indirect majority ownership in the utility.
These factors supported a two-notch rating uplift from TNB’s standalone corporate credit rating to AAA, while the company’s RM2 billion Al-Bai’ Bithaman Ajil bonds are rated AAAIS, MARC said.
On July 29 this year, TNB announced it will transfer the assets, liabilities and business undertakings of its domestic power generation and electricity retail segments to two newly-incorporated, but wholly owned companies.
The utility incorporated two wholly owned subsidiaries — namely, TNB Power Generation Sdn Bhd (GenCo) and TNB Retail Sdn Bhd (RetailCo) — and both will operate under the purview of a separate board and management team.
National grid operations and electricity distribution will continue to operate under TNB.
The proposed internal restructuring is aimed at preparing TNB to meet upcoming reforms in Malaysia’s electricity supply industry.
As part of the Malaysia Electricity Supply Industry 2.0, the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) aims to reform the country’s electricity supply industry into a more competitive and robust sector.
This could entail the opening up of the electricity retail market to allow new energy suppliers to come into the domestic market.
If it materialises, a wholesale electricity market could be introduced — whereby consumers can opt to buy electricity from TNB at a regulated tariff or from the wholesale electricity market, similar to what Singapore does via its Open Electricity Market.
Note that TNB’s proposed restructuring is subject to shareholders’ approval; High Court sanction; consent from TNB’s creditors and financiers; and approval from MESTECC, the Energy Commission and the Finance Ministry.
Barring unforeseen circumstances, the restructuring is expected to be completed by the third quarter of next year.
Meanwhile, MARC affirmed its AA-IS rating on Southern Power Generation Sdn Bhd’s up to RM4 billion Sukuk Wakalah with a ‘Stable’ outlook, reflecting the power plant’s steady construction progress and no cost overrun.
Southern Power is a 51:49 joint venture between TNB and SIPP Energy Sdn Bhd to develop a 2x720MW combined cycle gas-fired power plant in Pasir Gudang, Johor.
The project achieved actual construction progress of 82.2% by the end of March this year, ahead by 1% of scheduled progress, while the commercial operation date (COD) is expected on July 1 next year.
“Upon achieving COD, the predictable operational cashflow generated by the power plant on the back of an availability-based tariff structure under a 21-year power purchase agreement with TNB is deemed adequate to meet sukuk obligations,” it said.
The overall project cost remains unchanged at RM4.58 billion, which is funded by a debt-to-equity mix of 80:20.
MARC also has a ‘Stable’ outlook for other TNB-related entities under its coverage — namely, the respective sukuk issuances of Kapar Energy Ventures Sdn Bhd, TNB Western Energy Bhd, TNB Northern Energy Bhd and Jimah East Power Sdn Bhd.
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KUALA LUMPUR: Malaysia on Tuesday said the Johor PortAuthority was working to develop a 2 billion ringgit ($477 million) oil storage and ship refueling site in the country’s south.
That marks the latest step in a push to turn Malaysia’s southern peninsular state of Johor into an oil and gas hub that could one day rival Singapore, currently Asia’s main oil centre.
The “Bunker Island Development” is set to have the capacity to store about 1.2 million cubic metres of various oil and gas products, the transport ministry said. It will be used for storage, blending and redistribution.
The ministry added that the project would also be used to promote cleaner marine fuel in accordance with International Maritime Organization (IMO) rules that will require lower sulphur content in shipping fuel from 2020.
Johor is where state energy firm Petronas has begun operating its oil refinery and petrochemical project known as Pengerang Refining and Petrochemical (PrefChem).
The transport ministry said in its statement that Johor Port Authority had signed a sublease agreement with Smart Crest Sdn Bhd, which is funding the development.
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Every day after his morning run, Adam Reutens-Tan washes under a half-full camping shower hooked on the ceiling of his bathroom.
The modified shower, which uses just four litres of water, is one of several ways the Reutens-Tans family conserve water as part of a countrywide push to cut Singapore’s daily consumption by 8% by 2030.
The nation currently uses 141 litres per person each day – about enough for two typical eight-minute U.S. showers, according to Harvard University statistics.
Singapore, a steamy, low-lying island city-state, is the fifth most likely country in the world to face extremely high water stress by 2040, according to the U.S.-based World Resources Institute.
And it is hardly alone.
U.N. data shows 2 billion people – a quarter of the world’s population – now use water much faster than the planet can replenish natural sources, such as groundwater.
Singapore gets about half of its water from neighbouring Malaysia, according to local water experts, importing supplies from the Johor River under deals dating back to 1927.
But the current import agreement is due to expire in 2061 – and the price Singapore pays for Malaysian water has been a source of friction between the neighbours for years.
Singapore buys river water from Malaysia for 3 sen – less than a tenth of a U.S. cent – per 1,000 gallons, then treats it and sells some of it back to Malaysia’s Johor state at 50 sen per 1,000 gallons.
Malaysia’s prime minister has called the price Singapore pays to import Malaysian water “ridiculous”.
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HCM City (VNS/VNA) – With power transmission lines and sub-stations getting overloaded in some provinces, authorities and experts have urged the Government to allow renewable energy investors to install transmission systems and transfer them to the Vietnam Electricity (EVN) for operation.
Transmission lines, especially in Ninh Thuan and Binh Thuan provinces, have become overloaded after several renewable power plants went online. Ninh Thuan wants the Government to allow them to build transmission infrastructure.
Many experts agreed with this, saying besides adjusting zoning plans for renewable energy, the Government should create a mechanism for private investment in transmission systems.
Assoc Prof Dr Bui Quang Tuan, Director of the Vietnam Institute of Economics, said this would address the lack of capital.
Phuong Hoang Kim, Director of the Ministry of Industry and Trade’s Electricity and Renewable Energy Authority, told Nguoi Lao Dong (The Labourer) newspaper that with huge sums needed for electricity development and the Government no longer guaranteeing loans for power projects, the private sector should be allowed to invest in some stages.
The Electricity Law stipulates a Government monopoly in transmission, meaning the Government installs, manages and operates transmission systems, he said.
Therefore, the private sector is not allowed to do so. “Even if enterprises … build transmission lines and hand over at zero VND, the electricity industry has no mechanism to receive these assets,” he said.
The law also stipulates transmission costs should be less than 100 VND/KWh and subsidised by the Government to keep electricity prices under control.
If the private sector invests in transmission, it would determine the price, which cannot be as cheap as State-regulated rates, but it is not easy to sharply raise electricity prices since they are fixed by the State, he explained.
From the perspective of energy security, Prof Dr Tran Dinh Long, Vice Chairman of the Vietnam Electrical Engineering Association, said in many countries power transmission remains a monopoly of the Government because this is the “backbone” of the electrical system.
So, if Vietnam has a plan to allow the private sector into power transmission, there should be a thorough discussion in the National Assembly before laws are amended, he said.
Transmission lines of 220KV and above should remain a Government preserve, he said.
Transmission lines of 110KV and less and lines from power projects far from existing transmission lines could be opened to the private sector, he said.
In addition to quickly building transmission lines in areas where they are overloaded, the electricity sector also needs to balance transmission from various sources, he said.
For instance, from 8am to 4pm it is preferable for solar plants to transmit power to the grid.
According to EVN, as of the end of June the country had 89 solar power plants with a total capacity of 4,543 MW, far in excess of the 850 MW by 2020 envisaged in the power plan.-VNS/VNA
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JAKARTA (Reuters) – Indonesia may require an estimated $15 billion (£12.43 billion) in investment to meet its target of reaching 7.2 gigawatts (GW) of geothermal power capacity by 2025 and is studying ways to reduce project costs, an energy ministry official said on Tuesday.
The capacity would be an increase from less than 2 GW of geothermal power currently, the Ministry of Energy and Mineral Resources’s Director General of Renewable Energy F.X. Sutijastoto told reporters at a conference on geothermal energy.
Earlier at the conference, Indonesian Vice President Jusuf Kalla said during a speech that progress in geothermal power development in the past decade has been “very slow” and the dependency on coal power has caused air pollution around the capital Jakarta.
Coal currently makes up around 60% of the country’s energy mix versus about 5% from geothermal power, according to data from state utility company PT Perusahaan Listrik Negara (PLN).
The energy ministry is drafting up plans to accelerate ongoing projects to meet the target, Sutijastoto said, including reviewing the possibility of the government reimbursing some part of the development costs.
“We will see, things such as infrastructure, may be possible to be reimbursed by the government,” he said, referring to items such as roads or bridges built by the company to reach the geothermal power site.
PT Pertamina Geothermal Energy, a unit of state energy company PT Pertamina, is aiming to invest $2.7 billion in geothermal power through 2026, President Director Ali Mundakir told reporters at the conference.
The company aim to increase its geothermal capacity to 1.1 GW by 2026 from 672 megawatts currently.
(Reporting by Wilda Asmarini; Writing by Fransiska Nangoy; Editing by Christian Schmollinger)
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Kuala Lumpur (CNN Business)The world is heating up, making us rethink not just how we live but where we live and work too.
ASEAN Centre for Energy (ACE) is an intergovernmental organisation within ASEAN structure that represents the 10 ASEAN Member States’ (AMS) interests in the energy sector.
