Last week, the National Transmission Corp. (TransCo), the administrator of feed in tariff (FiT) — which guarantees high prices for 20 years for variable renewable energy (solar, wind, biomass, run of river hydro) filed a petition at the Energy Regulatory Commission (ERC). It sought for an increase in FiT-Allowance to be paid by all electricity consumers nationwide.

FiT-All is one of roughly 12 different charges and taxes in our monthly electricity bill and the one with the fastest increases in recent years: four centavos/kWh in 2015, 12.40 centavos in 2016, 18 centavos this 2017, and 29.32 centavos next year. It is a clear example of renewables’ cronyism that penalizes electricity consumers and rewards renewable energy (RE) developers supposedly to help “save the planet.”

Also last week, I attended the Energy Policy Development Program (EPDP) lecture at UP School of Economics, entitled: “Natural gas: Addressing the energy trilemma and powering our energy needs.” The lecture was delivered by Mr. Giles Puno, President and COO of FirstGen, a big Lopez-owned power company. Mr. Puno covered many topics but I will only focus on the lecture’s three aspects.

One, the lecture mentioned that the cost of wind-solar keeps decreasing so efforts to decarbonize the economy is improving, away from coal power which cannot remain cheap in the long-term.

During the open forum, I said that this is not exactly correct because while it is true that the technology cost of wind-solar is declining, the FiT rates given to wind-solar keeps rising actually. FiT rates for wind batch 1 (2015 entrants) were P8.53/kWh in 2015, this went up to P8.90 in 2016, and P9.19 in 2017. Wind batch 2 (2016 entrants) were P7.40/kWh in 2016 and P7.71 in 2017.

Solar batch 1 (2015 entrants) FiT rates were P9.68/kWh in 2015, P9.91 in 2016, and P10.26 in 2017. Solar batch 2 (2016 entrants) FiT rates were P8.69/kWh in 2016 and P8.89 in 2017.

FiT revenues collected by all RE firms given FiT privilege were P10.22B in 2015, a figure that rose to P18.54B in 2016, and P24.44B in 2017.

Two, to address the energy trilemma (energy security, energy equity/affordability, environmental stability), the lecture questioned the 3,500 MW worth of coal supply in the Meralco power supply agreements (PSA). These PSAs were anathema to environmental stability and energy equity since power rate hikes will be expected since coal prices are expected to rise over the long-term. That government should instead prioritize natural gas development.

I mentioned in the open forum that I saw the World Energy Council (WEC) World Energy Trilemma Index 2016 and out of the 125 countries covered, the Philippines was #1 in environmental sustainability, thanks to our big geothermal and hydro, plus recently added variable REs. But Philippines was #92 in energy equity because of our expensive electricity, 3^rd highest in Asia next to Japan and Hong Kong.

So it is wrong to demonize coal (nearly 35% of installed capacity but 48% of actual electricity production in 2016) that contributed to declining prices in generation charge in recent years. For instance, the load-weighted average price (LWAP) at the Wholesale Electricity Spot Market (WESM) was declining from about P5.40/kWh in 2012 to only P2.80 in 2016.

Consider also the fact that Philippines’ coal use is small compared to what our neighbors in the region consume. Vietnam consumes twice the amount of what we use, Taiwan three times, Indonesia five times, South Korea and Japan six times — for 2016 alone (see graph).

Power companies like FirstGen should focus on ensuring that electricity consumers have cheap and stable electricity available 24/7 without any brownouts, even for a minute. Instead of demonizing and suggesting the stopping of more coal power to come on stream.

Third, Mr. Puno and FirsGen want “government support crucial for LNG development and (1) Holistic and defined energy mix to direct planning and investments, (2) Incentivize LNG through fiscal and non-fiscal policies, (3) Secure LNG Off-take, similar to how Malampaya was underpinned.”

The first two items I consider as cronyist or seeking a crony status from the government. Setting the energy mix should be done by the consumers, not government. The previous Petilla/Monsada plan of 30-30-30-10 energy mix for coal-natural gas-renewable energy-oil respectively is wrong and has no sensible basis. It is good that new DoE Secretary Cusi has dumped it in favor of 70-30-10 energy mix for baseload-mid merit-peaking plants, respectively.

Government taxes should apply to all technology — coal, natgas, hydro, geothermal, etc. — no special privileges of tax breaks and other non-fiscal sweeteners. To ask for tax and non-tax privileges for LNG is asking for crony privileges.

We need less government regulations in setting the energy mix, less government favoritism for expensive wind-solar resulting in more expensive electricity. Government should focus on having energy laws and taxes that apply to all technology and players without any entity enjoying special privileges.

Bienvenido S. Oplas, Jr. is the President of Minimal Government Thinkers and a Fellow of SEANET and Stratbase-ADRi.

minimalgovernment@gmail.com

Makati City is a small but modern city. And just like any other metropolitan area, it has its share of issues, crime included. Nowadays, I am not as comfortable as before in walking around the city, even in my own neighborhood, particularly in the evenings. Makati City, it seems, is now under 12-hour law. From 7 p.m. to 7 a.m., it’s a game of chance for residents.

Gone are the days when Makati City was practically dead after office hours.

With at least one 24-hour call center at every corner of the business district now, Makati City has no more “dead” time. Even vehicular traffic to and from the city, and within, lasts way beyond the standard rush hours. Even at midnight, buses, jeepneys, and many Uber and Grab cars linger.

But, only the call centers work 24 hours. The law, it seems, does not.

While I consider the level of “lawlessness” during “off-duty” hours as manageable, it is still sad that despite all the city’s resources, and all the technology available to it, a better sense of security for residents is not something that can be assured especially by nightfall.

Up until early 2016, I felt comfortable living near the Central Business District (CBD). That is, comfortable enough to actually walk to and from my office building in the evenings, or before first light. Last year, however, somebody was gunned down one evening right in front of the bar just two buildings away from where I work.

If memory serves me, this was the first of such incident in the immediate vicinity of my office building in the last 10 years. Weeks later after that incident, the victim’s sister was also killed while on her way home. She was reportedly in a jeepney that was plying a route not too far from my place, when a gunman murdered her.

And about a month ago, a woman who worked in my building was run down by a jeepney on Gil Puyat. She later died from her injuries, leaving behind a husband, a son, a daughter-in-law, and a grandchild. And then just this early Tuesday morning, gunmen allegedly in police uniform murdered three men in nearby Brgy. La Paz.

Serious crime, where people die, appear to have become common nowadays, even in a city like Makati City.

But, while this may be a sign of the times — for one reason or the other — what irks me more is the fact that most ordinary people, like myself, are practically helpless against such misfortune. The law — or even technology — offer little consolation.

Makati City Police Chief, Senior Supt. Jerry Umayao, in a news report, pointed to the fact that Makati City streets were full of closed-circuit television (CCTV) cameras. But, in the case of the La Paz killings Tuesday morning, Brgy. Chairman Ferdinand Concepcion said the two CCTV cameras at the scene of the crime were not working when the shooting happened.

Two watchmen on duty “may have pressed the wrong button,” he was quoted as saying in a news report, causing the CCTV cameras to stop recording. Incidentally, when the woman from my building was run down by a jeepney on Gil Puyat, authorities claimed that the CCTV camera in the area was also not working at the time.

I am lucky to live in a small but relatively secure gated community. But, this is not to say we have not had our share of incidents, particularly theft. However, I still consider my residential area safe. What worries me is that areas surrounding us, and places not too far from us, appear to be grappling with more violent crime. Although, I have no statistics to back up this assertion.

Criminals obviously take advantage of the cover of darkness. That’s why a lot of things go bump in the night.

But, on the annoying side, a lot of ordinary people have also become less conscious — or perhaps less concerned — with laws and ordinances as well as traffic rules and regulations particularly from 7 p.m, to 7 a.m.

Jupiter St. in Brgy. Bel-Air, for instance, is a no-parking zone at any time of day. And yet, this rule is observed more in breach.

Just check behind the Napolcom building during the day, and in front of the popular Strumm’s bar at night. There are also signs that Jupiter St. is a no U-turn street, and yet nobody is ever ticketed for doing a U-turn.

Ayala Avenue is a no-littering zone, but it doesn’t seem like anybody cares to follow. And, UV Express units entering the CBD have little regard for traffic lights and traffic signs, and thus risk the safety of other motorists and pedestrians, from late evening until traffic enforcers report for duty at 7 a.m. Before this time, driving through Salcedo Village and Paseo De Roxas can be annoyingly difficult because of these abusive UV Express units, and their stop-go driving.

Worse, some night-shift workers double park their cars, and move them only after their shift ends in the morning. They can do this because from 7 p.m. to 7 a.m., no one tickets, tows, or accosts them for an obvious violation.

The Makati Parking Authority spends a fortune annually on maintaining roads, street signs, and employing parking enforcers and traffic enforcers, but all these are irrelevant during the 12 hours that CBD is lawless.

During late evenings to early morning, whether weekdays or weekends, I rarely see police patrols, barangay patrols, or private security patrols in the CBD. Of course, I do not expect the city government, the Makati Parking Authority, or the barangays to maintain traffic management, security watch, and high-level of visibility for 24 hours daily.

However, this is precisely where technology should come in and aid even just a skeletal work force in the night shift. Traffic and parking violations captured on CCTV, for instance, should not need the physical issuance of a ticket. Penalty assessments can be mailed to the car owner, as per license plate or conduction sticker captured by CCTV, and as verified with LTO records.

And those who fail to contest or pay the fines in a timely manner will have to go to adjudication boards. Meantime, licenses and car registrations can be suspended up until pending traffic and parking violations are resolved.

Maintaining even just one or two tow trucks to service the CBD during the evenings will also be good.

I am sure there will be plenty of money to be made from towing illegally parked cars in the evenings. CCTV cameras will also allow traffic authorities to quickly deploy traffic enforcers (on night shift) to “problem areas” in the evenings, or during emergencies.

When a vehicular accident occurs at around 10 p.m., and traffic congestion results from it, there should be somebody to help untangle the mess. MAPA can handle this in CBD, and then MAPSA and the barangays in other parts of the city. Couple this with the plan to train firefighters as paramedics as well, then we can have more bases covered. Crime can be left to the police.

In the CBD, unscrupulous motorists violate traffic and parking rules and regulations, and pedestrians jaywalk, with impunity particularly from 10 p.m. to 7 a.m. because they know that there will be no one to apprehend them. Pedestrians on the way to work before 7 a.m. would rather jaywalk, and disregard their own personal safety and that of motorists, than use underpasses.

Laws apply 24 hours daily, and not just during day time, and they should be enforced strictly and consistently. Time of day should not be an excuse or a factor. More technology, not more people, can help address this problem. That is, if at the very least, we can actually make sure that CCTV cameras are working all the time.

Marvin A. Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com