ERC opposes consolidation of cases on power supply deals

February 10, 2023 | 12:05 am

THE Energy Regulatory Commission (ERC) is appealing the decision of the appellate court to consolidate the cases filed by units of SMC Global Power Holdings Corp.

“The OSG (Office of the Solicitor General) as our counsel filed a partial motion for reconsideration on the consolidation, so in a way, we are opposing the consolidation,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta told reporters on the sidelines of an energy forum on Wednesday.

Ms. Dimalanta was referring to the decision of the Court of Appeals (CA) to consolidate the case of San Miguel Energy Corp. (SMEC) with that of South Premiere Power Corp. (SPPC). Both are units of SMC Global Power.

“There are many requirements for consolidation but the OSG argued that the two cases are different, the legal issue of the two cases, so it’s not prime for consolidation,” Ms. Dimalanta said.

Ms. Dimalanta said that while both cases cited a “change in circumstance,” SPPC specifically cited the change in law due to the gas restriction notice on Malampaya, while SMEC cited economic conditions due to the supply chain disruption of the Russian-Ukraine war.

SPPC is the administrator of the natural gas-fired power plant in Ilijan, Batangas, while SMEC is the administrator of the coal power plant in Sual, Pangasinan.

In January, the 13^th Division of the CA issued a writ of preliminary injunction (WPI), which indefinitely suspended the power supply agreement (PSA) of SPPC and Manila Electric Co. (Meralco).

However, the CA denied the issuance of a hold order sought by SMEC but granted its motion to consolidate the case with SPPC, which is currently pending before the 13^th Division of the appellate court.

“The OSG is still studying the legal implications of the decision. As of now, we’re tied with the injunction. We need to respect that,” Ms. Dimalanta said, adding that the commission will just wait for what its counsel with say.

The decision of the ERC to oppose the CA ruling stemmed from SMC Global Power’s decision to ask the CA to reverse the decision of the ERC in September last year.

To recall, SMC Global Power and Meralco jointly filed a petition for a rate increase in May last year, which the ERC denied in September.

The ERC decision prompted SMC Global Power to elevate the cases to the appellate court in November last year.

In August last year, SMC Global Power said its units SPPC and SMEC had incurred a combined loss of P15 billion. The rate increase was meant to recover part or P5 billion of the units’ losses.

The company cited a change in circumstance when surging fuel costs breached the price range contemplated during the execution of the contracts with Meralco. However, the ERC denied the petition, saying this had no basis as the PSA is a fixed-rate contract. — Ashley Erika O. Jose

Mamma mia! Pizza got 16% more expensive in the EU last year

February 10, 2023 | 12:05 am

THE COST of store-bought pizza and quiche in the European Union (EU) grew in December by 16% from a year earlier, the bloc’s statistics agency Eurostat said on Wednesday.

As food lovers in the US prepared to celebrate National Pizza Day on Feb. 9, EU consumers will have to search deeper in their pockets to enjoy a slice of Italy’s most renowned fast food.

However, the pizza inflation rate varied wildly across the EU, with Hungary topping the Eurostat chart with a 46% yearly price increase, followed by Lithuania and Bulgaria on 39% and 37% respectively.

The smallest price hikes in pizza and quiche, lumped together in Eurostat’s novel indicator, were recorded in Luxembourg (+7%), Italy (+10%), and France (+13%).

Overall inflation in the euro zone increased in December by +9.2% year-on-year, with a 13.8% hike in food, alcohol & tobacco products, the agency reported last month.

Eurostat categorizes “pizza and quiche products” as including store-bought varieties of “flour based products prepared with meat, fish, seafood, cheese, vegetables or fruit.” — Reuters

PNRI says Korean firm offers to revive BNPP in five years

February 10, 2023 | 12:04 am

A SOUTH Korean company has offered to rehabilitate the nuclear power plant in Bataan, an official of the Philippine Nuclear Research Institute (PNRI) said on Thursday.

Carlo A. Arcilla, PNRI director, told reporters on the sidelines of an energy forum that Korea Hydro & Nuclear Power Co., Ltd. (KHNP) made the offer to revive the Bataan Nuclear Power Plant (BNPP) within five years for a cost of $1.19 billion.

“The one that is really interested in the BNPP is Korea because Korea has an exact model and they said that they can revive it in five years,” he said, referring to the Kori Nuclear Power Plant in South Korea.

The 621-megawatt BNPP was constructed as a response to the 1973 oil crisis. It was completed in 1984 but was never commissioned due to safety concerns.

Mr. Arcilla said KHNP is interested to revive the Bataan plant because almost everything in it is complete.

Last year, Sebin Cheon, senior manager at KHNP, said the company supports the rehabilitation of the BNPP while reinforcing its safety requirements.

The Department of Energy earlier estimated a timeline of 10 years before nuclear power can be integrated into the country’s energy mix.

On Wednesday, an Energy official said the Chinese government had expressed its intent to work with the Philippines in possibly integrating nuclear power among local energy sources.

President Ferdinand R. Marcos, Jr. had expressed interest in re-examining the feasibility of adding nuclear power as a solution to the country’s energy supply problems. — Ashley Erika O. Jose

Britain takes aim at Microsoft’s $69-billion Call of Duty deal

February 10, 2023 | 12:04 am

MWII-S02-ANNOUNCEMENT-026 — CALLOFDUTY.COM

LONDON — Britain placed another hurdle in the way of Microsoft’s $69-billion mega purchase of Call of Duty maker Activision Blizzard, saying it could harm gamers by weakening the rivalry between Xbox and Sony’s PlayStation.

The Competition and Markets Authority (CMA) said on Wednesday the biggest-ever deal in gaming, announced a year ago, could result in higher prices, fewer choices, and less innovation for millions of players, as well as stifling competition in cloud gaming.

It said Activision’s flagship Call of Duty franchise was important in driving competition between consoles, and Microsoft could benefit by making the game exclusive to Xbox, or only available on PlayStation under materially worse conditions.

The deal is being scrutinized in the United States and Europe as well as in Britain, where the CMA showed its willingness to take-on big tech in 2021 when it blocked Facebook-owner Meta’s acquisition of Giphy.

In December, the United States moved to block the deal, citing Microsoft’s record of hoarding valuable gaming content. The Federal Trade Commission has set a hearing before a judge for August this year.

The EU is also preparing a statement of objections about the deal, sources told Reuters last month.

Alex Haffner, competition partner at law firm Fladgate, said the CMA’s comments suggested that structural commitments, such as asset sales, might be the only way to allay its concerns.

“This would obviously call into question the strategic rationale for the deal,” Mr. Haffner said. “Microsoft faces a stiff challenge to get the global regulatory green light.”

Microsoft has pledged to keep Call of Duty on PlayStation. The popularity of the first-person shooter franchise is undimmed nearly two decades after launch, with the latest instalment achieving $1 billion sales in its first 10 days in October.

But the US tech giant has said the deal is about more than Call of Duty.

It has said buying the company that also makes Overwatch and Candy Crush would charge its growth in mobile, PC, and cloud gaming, as well as consoles, helping it compete with the likes of Tencent as well as Sony.

Sony, however, has led opposition to the deal, saying last year that it was “bad for competition, bad for the gaming industry and bad for gamers themselves.”

CROSSFIRE
The CMA investigation’s chair Martin Coleman said his job was to make sure that British gamers were not caught in the crossfire of global deals that could damage competition and result in higher prices, fewer choices, or less innovation.

“We have provisionally found that this may be the case here,” he said.

Shares in Activision were down 3% in early trading in New York. Microsoft, which announced an AI-driven revamp of its search capabilities on Tuesday, was up 2.4%.

Microsoft said it would address the CMA’s concerns.

“Our commitment to grant long-term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the deal’s benefits to gamers and developers and increases competition in the market,” its Deputy General Counsel Rima Alaily said.

Activision Blizzard said the findings were provisional and it hoped to help the regulator better understand the industry before it issues a final report by April 26. — Reuters

4Ps beneficiaries to get construction training

February 10, 2023 | 12:03 am

Housing-construction-worker — PHILSTAR FILE PHOTO

A REGIONAL OFFICE of the Social Welfare department said it has partnered with Knauf Gypsum Philippines, Inc. to train beneficiaries of the government’s cash transfer program in construction work.

Mark Dewey Sergio, managing director of Knauf Gypsum Philippines, said that the partnership with the Department of Social Welfare and Development (DSWD) Field Office IV-A Calabarzon targets beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) cash transfer program.

The program will feature training in Knauf Academy, the company’s gypsum board installation training center for construction workers. Mr. Sergio said the academy will select from both beginners and experienced construction workers.

“We will look at those who have less or no skills to assess their subsistence and survival. We will slowly build their skills,” DSWD IV-A project development officer Nellibeth V. Mercado said.

Jenny Ronna Dimaculangan, program development officer at DSWD IV-A, said that the agency will recruit beneficiaries who are 18 years old and above from barangays near its training centers.

“We will find out who is easier to train… and then refer them for employment,” Ms. Dimaculangan said.

Barry R. Chua, DSWD IV-A regional director, said the project will help enhance construction workers’ skills and provide livelihood opportunities.

Knauf manufactures materials used in ceilings, jointing, and walls, as well as finishing compounds. It also makes acoustic panels, ceiling tiles, and acoustic suspension systems. The company operates in Asia, Europe, the US, Russia, Africa, Australia, and South America.

Republic Act 11310, or the 4Ps law, provides conditional cash grants to the poorest households to improve their nutrition, health, as well as education for children up to 18 years old. There are 340,000 registered beneficiaries in Calabarzon. — Beatriz Marie D. Cruz

CTA upholds Davao City’s fees on San Miguel Foods

February 10, 2023 | 12:03 am

LOCAL governments can collect slaughter fees as part of their regulatory powers, the Court of Tax Appeals (CTA) ruled, as it upheld the fee imposed on San Miguel Foods, Inc. (SMFI) by the Davao City Treasurer’s Office in 2016.

In a 19-page decision dated Jan. 31 and made public on Feb. 7, the CTA full court said the local government unit had the jurisdiction and authority to collect the fees worth P625,023.30 for slaughtering birds and poultry for food products in 2016.

“Clearly, the regulation of the slaughter of live bird/poultry, which is the activity undertaken in SMFI’s dressing plants, is covered within the standards of health and safety for the exercise of the city’s regulatory powers,” it said.

“All told the permit fee to slaughter, which petitioner SMFI paid under protest, is in the nature of a license fee and not a tax,” it added.

It noted that the fees were not local taxes but were used to regulate a specific public interest business, including slaughtering livestock and poultry.

The Davao City revenue code requires private establishments to secure permits from the city veterinarian before they can slaughter animals for their food commodities.

The firm would then have to pay a fee to the city treasurer for the said permits.

Last year, the CTA affirmed a similar permit fee imposed by the Davao treasurer on SMFI worth P338,731.90.

SMFI, a subsidiary of a food conglomerate based in Pasig City, argued that the tax tribunal had jurisdiction over the regulatory fees and local taxes.

The tax court disagreed, saying it did not have jurisdiction over disputes involving the imposition of fees by local government units.

“It bears stressing that the police power delegated to the local government unit under the local government code subsumes the promotion of health and safety within their territory,” it said. — John Victor D. Ordoñez

GSIS mobile app users exceed 500,000

February 10, 2023 | 12:03 am

GOVERNMENT Service Insurance System’s (GSIS) mobile app recorded 506,040 registered users and an average of 25,000 users after a year of being available to the public.

The GSIS Touch mobile app also recorded 372,338 loan applications since its release, app developer OutSystems said in a statement on Thursday.

“Some of the most pressing issues that government agencies face today include the speed it takes to deliver a product or seamless service to the market. As a leading high-performance low-code platform, OutSystems hopes to improve business efficiency and lower operational costs as we continue to extend our services and assist more Philippine government agencies in their digital transformation efforts for the coming years,” OutSystems Asia-Pacific Vice-President Mark Weaser said.

GSIS leveraged on OutSystems’ platform to develop the mobile app, allowing over 2.5 million members and pensioners to apply for loans and tap services online, the application developer said.

The GSIS app was developed in 2020 in response to the restrictions and safety concerns caused by the coronavirus disease 2019 (COVID-19) pandemic, OutSystems said.

“Currently, GSIS is working on a payment portal integration for loan payments with one of its partner banks. The GSIS Mobile Touch App will also be further improved by adding a facial recognition feature, payment portal or integration with more financial institutions like banks for online payment of loans; integration with the Philippine ID System for online, real-time Annual Pensioner Information Revalidation by pensioners using facial image verification; and GSIS Touch as portal to the GSIS eWallet,” it added.

“As a government agency that is at the forefront of innovation, we are proud to have been able to launch the Touch Mobile App that is accessible by hundreds and thousands of our members. We look forward to seeing the app become the next major communication and transaction channel of GSIS, allowing more Filipinos to have seamless access to our services without traveling to the GSIS branches or agency offices in the country,” GSIS Information Technology and Service Group Senior Vice-President Juan P. Evangelista said. — AMCS

Stuff to Do (02/10/23)

February 10, 2023 | 12:03 am

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Love and flowers at Century City Mall

FLOWERS, chocolates, promos, and proposals are highlights at Makati’s Century City Mall this February. At the Enchanted Flower Shop, customers get an automatic 10% off when they place bouquet orders until Feb. 10. They can also take a creative snapshot at the Enchanted Flower Arch at Level 1 of the mall’s Main Entrance, upload it on their Facebook accounts with #MonthInFullBloom included in the caption, for a chance to win Enchanted Flower Shop’s featured blooms. Meanwhile, the mall’s cinema offers a 10% discount for engagement proposals throughout February. A proposal booth, set up in partnership with M Proposal, can be found by the Main entrance at Level 1 Al Fresco. Edi’s Bistro and Deli is offering free wine for dine-in customers until Feb. 14. Live acoustic music performances will be held at Level 4 Al Fresco on Feb. 10, 14, and 24 from 5 to 7 p.m. The Lover’s Lane Market at Level 1, Main Atrium, is where you can buy gifts.

Night at the Museums tour

IN LINE with Renacimiento Manila’s Carnival des las Artes de Manila, the Night at the Museums tour will be held on Feb. 14, 5 p.m., a project of the Heritage Collective, Akim — Ang Kuwentong Inuwi Mo/Manila Girls, and Manila By Night. Slots are limited for 20 people. Meet up is at Calvo Building Lobby, Escolta Street, Binondo. To register, visit https://forms.gle/urLXF9BwzjZXhgda9. For more information, visit www.facebook.com/TheHeritageCollective.

Dining and music at Newport World Resorts

THE WHOLE month of February is all about love at Newport World Resorts. Lovers get a special treat with the return of La Serenata at the Casa Buenas. On Feb. 12, 13, and 14, from 6-11 p.m., diners can enjoy a seven-course dinner paired with fine wine and romantic music. An evening at a Couple’s Table starts at P10,000 net. The exclusive La Cupula package is available at P40,000 net for up to six diners, and the Pamilya Table is available for booking at P50,000 net for a group of eight. Casa Buenas is located at the Hotel Okura Manila, Newport Grand Wing. For reservations, contact 7908-8988 or 0917-878-8312. Meanwhile, Bar 360 will see Juan Miguel Salvador and The Authority Band bring their high-energy show of 1980s music back to the stage on Feb. 10, at 11:15 PM, with Variation Six getting the ball rolling from 9 p.m. On Saturday, In Heat performs at 9 p.m. and Tirso Cruz IV & The TAC 4 at 11:15 p.m.; while DK3 cap off the weekend on Sunday at 8:15 p.m. Get lost in love and good music at state-of-the-art The Grand Bar and Lounge with the disco fever rhythm of Judith Banal on Feb. 12 at 9 p.m. The Oeuvre performs on Thursdays at 8:45 p.m.; Spirit on Fridays at 9:15 p.m.; and Soul Republiq on Saturdays at 9:15 p.m. Enjoy laid-back acoustic sessions at El Calle Food and Music Hall with award-winning singer, songwriter, actor, and music producer Nino Alejandro on Feb. 11 at 8 p.m., followed by Cass at 10:15 p.m. Witness a week full of serenades starting Thursday with JV Decena at 8 p.m. and Julia Serad at 10:15 p.m. Setting the Friday mood are Musica at 8 p.m. and Hello Ceasar at 10:15 p.m.. On Sunday at 7 p.m., grab the mic and sing a love song in the Karaoke Night. At House Manila, the world-class DJs on deck take guests on a whirlwind ride. The party energy goes extra wild on Fame Fridays with Abbduct, Victor Pring, Jet Boado, and more. This Is Our House gets everyone into the weekend overdrive on Sunday night with Marx, Xiao, Margaux Luela, and more. Single’s Night will be held on Feb. 11 at KAO, the newest VIP nightlife destination inside Newport Mall. For inquiries and reservations for Single’s Night, contact KAO at 0917-122-4210. For more information on La Seranate and these Valentine’s shows and other All For Love offers, visit www.newportworldresorts.com .

Court convicts owner of money service business

February 10, 2023 | 12:02 am

AN OWNER of a money service business (MSB) was convicted for operating without securing a license with the Bangko Sentral ng Pilipinas (BSP), for which the executive pleaded guilty.

In a statement on Thursday, the BSP said: “The Regional Trial Court of Mandaluyong City has convicted the owner and operator of Zhenrihada Money Changing Services for violating Section 901-N of the Manual of Regulations for Non-Bank Financial Institutions of the BSP, as punishable under Section 36 of Republic Act No. 7653 or The New Central Bank Act.”

Based on charges filed by the central bank with the Department of Justice, the court convicted Tadzmahal Biste Andag for failing to register Zhenrihada as a money service business with the BSP prior to conducting its operations.

The owner pleaded guilty as charged and the court imposed a fine of P50,000, with subsidiary imprisonment in case of non-payment.

“The BSP ensures the compliance of banks and other regulated financial institutions with existing laws, rules, and regulations to ensure the soundness of the financial system and to protect the interest of the general public,” the central bank said.

In June 2021, the BSP closed down Zhenrihada Money Changing Services along with three more firms.

MSBs are seen by the BSP as access points for the financially unserved and underserved areas in the country.

As of end-2022, BSP-registered money service businesses had 7,584 head offices and branches nationwide. — K.B. Ta-asan

Emerging Power renews supply deal with AboitizPower retail units

February 10, 2023 | 12:02 am

EMERGING Power, Inc. (EPI) on Thursday said it had renewed an agreement to supply power to the retail electricity units of Aboitiz Power Corp. (AboitizPower).

In a statement, EPI said its subsidiary Jobin-SQM, Inc. had signed a three-year deal to supply AboitizPower units Aboitiz Energy Solutions, Inc. (AESI), and Advent Energy, Inc.

“We also hope to continue strengthening our ties with other industry players to achieve energy security. This partnership means better accessibility to renewable energy for the country and casting a wider net to reach customers and businesses that are taking a step toward a sustainable future,” Sandro Aboitiz, senior vice-president for commercial operations of AboitizPower, said in a media release.

EPI said Jobin-SQM will source the power from its 100-megawatt-peak (MWp) Sta. Rita solar power plant in Subic, Zambales. The plant has completed the increase in its capacity from 62 MW, it added.

By yearend, EPI will have an additional 72-MW solar facility on the same site.

In 2020, EPI and AboitizPower forged a three-year power supply deal for AESI and Advent Energy.

EPI is the renewable energy arm of listed mining firm Nickel Asia Corp. It targets to expand its portfolio to 1,000 MW by 2028, which will include the proposed projects under its partnership with Shell Overseas Investments B.V.

On Thursday, shares in Nickel Asia gained 13 centavos or 1.75% to end at P7.57 apiece, while shares in AboitizPower inched up by 5 centavos or 0.13% to close at P37.75 each. — Ashley Erika O. Jose

Philippine Peso 46.9% undervalued against US Dollar

February 10, 2023 | 12:02 am

The Economist’s Big Mac Index is based on the theory of purchasing power parity (PPP), which states that in the long run the exchange rates of any two economies should move towards the rate that would equalize the prices of an identical basket of goods. Using this approach for a Big Mac, one can estimate how much one currency is under- or overvalued relative to another. As of January 2023, a Big Mac costs $5.36 in the US compared to P155 in the Philippines, implying an exchange rate of P28.92 versus the dollar. Compared to the actual exchange rate of P54.44, this means that the peso is 46.9% undervalued.

AFL-CIO wants bigger say in US digital trade deals

February 10, 2023 | 12:02 am

WASHINGTON — The Biden administration has made digital trade the centerpiece of its trade negotiations, and the AFL-CIO wants a bigger say in how the US Trade Representative’s (USTR) office sets goals in this area, arguing they are too often dictated by big technology companies.

The largest US labor organization on Tuesday issued a set of principles that it says is needed to protect workers, the public’s privacy and governments’ ability to regulate a rapidly evolving sector as the USTR negotiates digital trade agreements.

The USTR is expected to soon propose text on the digital chapter in negotiations for the Indo-Pacific Economic Framework, the Biden administration’s signature economic agreement. US Trade Representative Katherine Tai has pledged to create a “worker-centric” trade policy, but the AFL-CIO said digital trade negotiations too often make no mention of labor standards nor the workers who write software or support networks.

“To date, US ‘digital trade’ agreements have sought to expand market access for large technology companies by granting broad digital data and intellectual property rights while narrowly constraining the ability of governments (of both the United States and our trade partners) to adopt measures to adopt measures to address the economic transformation,” the AFL-CIO said in its plan.

The heart of the organization’s demands involve ensuring that digital trade agreements are subject to strong and enforceable labor standards, the AFL-CIO said, discouraging the “exploitative” use of “gig” workers who often are deprived of benefits and subjected to difficult working conditions, and discouraging the offshoring of back-office or telemedicine jobs to countries with low labor standards.

But the AFL-CIO’s demands also push back against a key component of recent US trade deals that prohibit countries from imposing “data localization” policies to require data to be stored locally.

The renegotiated North American free trade deal, which went into effect in 2020, included such provisions, and USTR has sparred in recent years with countries including India over their plans for such policies, arguing that US-based data platforms should be free to operate anywhere in the world.

The AFL-CIO said that not all data is created equal and in some cases, governments should have the ability to require that individuals’ sensitive personal information, such as medical or biometric data, be kept on-shore to ensure it is safe.

The principles also call for negotiating strong safeguards against misappropriations of voices, images or likenesses that could be used in digital content generated by artificial intelligence (AI) technologies.

“Corporations shouldn’t dictate the rules of the global digital economy with no regard for working people,” AFL-CIO President Liz Shuler said in a statement. “Their drive to monetize data frequently violates crucial privacy rights and exploits workers.”

Ms. Tai made her first major USTR speech at AFL-CIO headquarters in Washington to outline her worker-centered trade strategy. Since then, a USTR spokesperson said she has continually “embedded workers’ voices into all of our trade initiatives,” including pursuing six trade cases to defend worker rights in Mexico.

“We look forward to reviewing the AFL-CIO’s ideas and continuing to work closely with them,” the spokesperson added.

Other AFL-CIO demands for digital trade negotiations include:

• Requiring governments to enact strong policies to safeguard individuals’ personal data as opposed to the current largely voluntary “self-regulation” model that has proven inadequate.

• Facilitate meaningful oversight of source codes and algorithms to ensure compliance with labor laws. The labor group says automated employee monitoring systems and other AI-enabled tools can undermine workers rights and promote discrimination.

•Address “abusive” employment practices in the technology sector, to discourage the use of contractors and require firms to eliminate labor abuses in their own operations and supply chains.

• Protect and promote economic security of creative professionals in the United States, including motion picture, television and music industry workers by aggressively addressing the stolen or unlicensed use of copyrighted content on digital platforms.

• Address the rise of cybercrime by state and private actors by requiring improved cybersecurity standards and a common enforcement agenda. — Reuters