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AIBA can return as good standing Olympic member, says McLaren

TORONTO — After years of corruption, the world boxing’s governing body International Boxing Association (AIBA) can return to a good standing Olympic member, Richard McLaren, the head of the independent investigation commissioned by the AIBA said on Friday.

In the second of three reports to be issued by McLaren, the Canadian law professor detailed an organization (AIBA) spinning out of control, creating a decentralized system of match-fixing.

In the initial findings of his investigation released in September, McLaren described a bout manipulation system which existed in boxing at the 2016 Rio Olympics and resulted in the removal of Executive Director Karim Bouzidi along with several referees and officials.

The International Olympic Committee (IOC) suspended the AIBA in 2019, stripping it of involvement in this year’s Tokyo Games over governance, finance, refereeing and ethical issues. A decision its role at Paris 2024 has yet to be taken.

Boxing was not included in the initial sports program for the 2028 Games in Los Angeles announced by the IOC on Thursday.

McLaren said he believes there has been improvement in the operation and administration of AIBA under the leadership of current President Umar Kremlev and Secretary-General Istvan Kovacs, but there was still much to be done with the third phase of his investigation and recommendations to come next year.

“It is hard for an organization to engage in self-reform,” said McLaren. “If they do, it is in a situation like AIBA is in with the IOC where they must or they are out.

“But it takes the right people with the integrity to run the organization, rules can be perfect but the people have to be better.

“If that happens and they implement the recommendations… I think it is possible for the sport to reform.”

Kremlev said AIBA was on the right track in terms of sports integrity, but still needed to make more progress.

“We are already implementing some of the recommendations Professor McLaren has made,” he said. “And we are very serious about making sure that fair fights are ensured by a powerful combination of regulations, processes, people and culture.” — Reuters

Ronaldo penalty gives Manchester United 1-0 win at Norwich

NORWICH, England — Cristiano Ronaldo converted a 75th-minute penalty to give Manchester United a barely deserved 1-0 win at Norwich City in the Premier League on Saturday after the visitors struggled to create chances at Carrow Road.

The result lifted United to fifth place in the standings on 27 points from 16 games, behind fourth-placed West Ham United on goal difference, while Norwich stayed bottom on 10 points.

United’s interim boss Ralf Rangnick was pleased with the outcome and a solid defensive performance but conceded that they needed to improve in every department.

“From the start, we controlled the game but didn’t always have the best possible solutions,” Rangnick told the BBC. “It’s another clean sheet but still a lot of work to do.

“The second half I was not at all happy with the amount of corners that we gave away, but we got the three points.

“Now we have two clean sheets, which is good but we still need to improve on that away, especially against physical teams or teams that attack high like Norwich did. They didn’t play like a bottom team.”

Ragnick’s counterpart Dean Smith was pleased with Norwich’s fighting spirit and contested referee Darren England’s decision to award United the penalty.

“We’ve just played two of the top six, we dominated at Tottenham but didn’t take our chances and we’ve gone toe-to-toe today with one of the big guns and a dubious penalty won it for them,” he said.

United lacked a cutting edge until Ronaldo drove in the spot-kick after he was hauled down by home defender Max Aarons.

Ronaldo saw a shot beaten away by Tim Krul in the 37th minute and the home goalkeeper also tipped over a Harry Maguire header on the stroke of half time after Alex Telles had hit the bar with a deflected free kick early on.

United fizzled out in the second half and Norwich looked more likely to break the deadlock as David De Gea kept out a Teemu Pukki shot from the edge of the area before Ronaldo struck, sending Krul the wrong way.

The home side piled on pressure in the closing stages and De Gea rescued United again when he clawed out an Ozan Kabak header before Eric Bailly deflected a Billy Gilmour shot with a last-gasp lunge.

United captain Harry Maguire praised De Gea and acknowledged United was not at their best, saying they needed consistency in grinding out results.

“David De Gea did great today,” the central defender told Sky Sports. “We’ve been very disappointed with our defensive record this year, we know we need to do better.

“When you’re playing every week, some performances aren’t going to be at the highest level. You see the top teams do it, they don’t play well every week but they still get the result.” — Reuters

Jason Day, Marc Leishman holds 3-shot lead at QBE Shootout

AUSSIES Jason Day and Marc Leishman combined for an 8-under 64 on Saturday and hold a three-shot lead after two rounds of the QBE Shootout in Naples, FL.

Leishman and Day are at 24-under 120. They combined for six birdies while Leishman had the moment of the day by knocking a 96-yard shot in for eagle on the par-4, No. 7 at Tiburon Golf Club.

“It’s funny, the ones you hole are the ones you don’t expect to go in,” Leishman said after the round. “I wasn’t expecting it to go in and then all of a sudden, it disappears. It’s nice. Something about this place that I’ve made a few shots the last couple years and hopefully, we can keep that trend going.”

Saturday’s format was modified alternate shot in which both players hit tee shots and then pick the best one and alternate shots.

There is a three-way tie for second between Billy Horschel/Sam Burns (10 under on Saturday), Jason Kokrak/South Korea’s Kevin Na (8 under) and defending champions Harris English/Matt Kuchar (6 under). English and Kuchar are seeking their fourth QBE title.

Northern Ireland’s Graeme McDowell/Canada’s Corey Connors are four shots back after a 5 under on Saturday. In sixth place is the duo of Bubba Watson and LPGA player Lexi Thompson, who were 6 under for the round and alone in sixth place.

Even though he sits in the lead with a three-stroke cushion, Day isn’t about to relax.

“We’ve just got to focus,” Day said. “We’re still 18 holes away from lifting the trophy, so got to stay on top of it.”

Horschel and Burns combined for 10 birdies, Na and Kokrak had 10 birdies and two bogeys and English and Kuchar had four birdies and an eagle on No. 1.

“Having a round with no bogeys is always good,” English said. “We played some solid golf, it’s just one of those days we didn’t get a whole lot of putts to fall, but it happens.”

The better ball format will be used for Sunday’s final round. — Reuters

76ers put clamps on Stephen Curry in win over Warriors

DEFENSIVE ace Matisse Thybulle harassed Stephen Curry into three-for-14 shooting on 3-pointers and Joel Embiid stole the show with a game-high 26 points on Saturday night as the Philadelphia 76ers rolled past the visiting Golden State Warriors, 102-93.

Needing nine 3-pointers to tie Ray Allen’s all-time National Basketball Association (NBA) career record, Curry came up six short and now takes his pursuit to Indiana on Monday night, where the Warriors will continue a five-game trip against the Pacers.

Shooting six-for-20 overall, Curry finished with 18 points, five fewer than Jordan Poole, the team leader with 23.

Thybulle, who played the entire second half in foul trouble, blocked two of Curry’s 3-point attempts to spur a defensive effort that saw the 76ers limit the Warriors to 12-for-48 on 3-pointers.

Embiid’s 26 points were boosted by 11-for-11 accuracy at the free throw line, where the 76ers outscored the Warriors 23-13.

Seeking a third straight win, the Warriors led 78-76 after a Nemanja Bjelica 3-pointer in the second minute of the fourth quarter.

But Andre Drummond, who tag-teamed effectively with Embiid with nine points and nine rebounds off the bench in 15 minutes, slammed down a Shake Milton lob to tie the game, and Thybulle bombed in his second 3-pointer of the night to put the hosts up for good.

A Draymond Green free throw with 5:57 to go had the Warriors within 85-83, but Seth Curry nailed a 3-pointer before Embiid and Tyrese Maxey followed with consecutive hoops, allowing the 76ers to pull away en route to the fourth victory in their last five games.

Tobias Harris backed Embiid with 16 points for the 76ers, while Maxey finished with 14, and Seth Curry and Milton 10 apiece.

Andrew Wiggins added 20 points for the Warriors, who were outshot 46.1% to 40.0%.

Stephen Curry found time for nine rebounds, which tied Embiid, Drummond and Harris for game-high honors. He also had a game-high five assists.

The 76ers led by as many as 10 in the first half, during which Stephen Curryç went into the 23rd minute before making his first 3-pointer. He connected on two in the final 1:45 of the second period, leading a late rally from a 42-38 deficit into a 49-46 halftime advantage. — Reuters

Record trey

Doc Rivers and Steve Kerr were in the building the last time the record for career three-point shots made changed hands. Ten years and 10 months ago, the two had a front-row seat to Ray Allen’s takeover of the top spot from Reggie Miller as head coach of the Celtics and broadcast analyst, respectively. They marveled at the feat then, and because the 10-time All-Star would go on to add 413 more to the aggregate over the next three and a half years, it seemed like one of those slates that figured to stand the test of time.

Boy, were Rivers and Kerr wrong. To be fair, no one could have predicted with any modicum of accuracy the effect advanced analytics would have on the boom in three pointers over the last decade. And, considering all that has transpired in the period, it’s fair to argue that two-time Most Valuable Player awardee Stephen Curry deserves at least as much credit for revolutionizing the sport. Indeed, his inevitable assumption of the throne behind the arc — and, in his case, closer to midcourt — underscores the role he has played in getting all and sundry to embrace the trey.

Purists have contended that Curry’s unparalleled range has led to unintended consequences. The midrange is all but dead, and big men — with the exception of generational stars like Anthony Davis and Joel Embiid — have been devalued to the point of irrelevance. At the same time, however, there can be no denying the lure and allure of the weightiest shot any player can have on his arsenal. It’s just a matter of math, really; there are only so many possessions to have in the course of a game, and it behooves teams to use them to secure the best opportunities to score. And, bottom line, three is one and a half times more valuable than two.

Which was why longtime hoops habitués were tuned in to the Sixers’ homestand against the Warriors yesterday. Heck, even diehard fans at the Wells Fargo Center wanted Curry to break the record. And rightly so. No better time to see history unfold than on their watch. When the battlesmoke cleared, however, the 21,016 warm bodies on hand had to settle for victory for the red, white, and blue. Allen is still on Everest, but the countdown shows he won’t be for long. The inevitable is coming — if for no other reason than because a certain 6’3” guard has stood tallest in the National Basketball Association for some time now.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

PHL to begin trade deal discussions with UAE

Reuters

THE PHILIPPINES has agreed with the United Arab Emirates (UAE) to undertake preliminary activities ahead of formal discussions for a trade deal, the Department of Trade and Industry (DTI) said.

In a statement Thursday, the DTI said Trade Secretary Ramon M. Lopez met with the UAE’s Ministers of State and Foreign Trade, Ahmed bin Ali Al Sayegh and Thani bin Ahmed Al Zeyoudi, respectively, on Dec. 8 during the Global Business Forum ASEAN hosted at Expo 2020 Dubai.

Following the meeting, the DTI said the UAE has agreed to start scoping discussions with the Philippines on a possible comprehensive economic partnership agreement (CEPA).

“Both governments recognize the large potential to expand bilateral trade and investment relations and are working towards the finalization of key agreements that will pave the way for the start of the broader CEPA negotiations,” Mr. Lopez said.

Asked to comment, Mr. Lopez told BusinessWorld by mobile phone that trade talks between the two countries should begin by February.

“Trade talks to start by February.  (There’s) a possibility to complete (talks) within three months,” Mr. Lopez said.

Mr. Lopez said the CEPA will build on a proposed Memorandum of Understanding (MoU) on Economic and Technical Cooperation and an Investment Promotion and Protection Agreement (IPPA), talks for which are ongoing.

“Given our economic complementarities and the strong ties between our peoples, we are optimistic that the proposed CEPA with UAE will redound to mutual benefits and will play an important role in accelerating the growth trajectory of the Philippine economy,” Mr. Lopez said.

The MoU allows for the creation of a joint economic commission which will facilitate the implementation of cooperation initiatives on trade and investment, particularly in areas such as agribusiness, manufacturing, renewable energy, real estate development, logistics, transportation, communication, tourism, technology, and innovation.

“In addition, the Philippines-UAE IPPA is expected to further deepen economic relations between the two countries by creating favorable conditions for investments and stimulating business initiatives while ensuring that the interests and sensitivities of both parties are protected,” Mr. Lopez said.

According to the DTI, the IPPA seeks to promote and facilitate UAE investment in the Philippines in key sectors like agribusiness, energy efficiency technologies and renewable energy, infrastructure, information technology and business process management (IT-BPM), oil & gas, and tourism.

Meanwhile, DTI said net foreign direct investment from the UAE during the first nine months of 2021 totaled $2.43 million, against the $1.18 million tallied for 2020.

It added that the UAE is the second-largest destination of overseas Filipinos in the Middle East, after Saudi Arabia.

“The UAE hosts known Philippine franchise brands and over a thousand Filipino-owned businesses, covering diverse sectors of food and beverage, trading and logistics, consultancy and other creative services, education and training, and hospitality services, among others,” the DTI said. — Revin Mikhael D. Ochave 

Nobel Peace laureate Muratov says war between Russia and Ukraine possible

OSLO — People in positions of power in Russia are actively promoting the idea of war, and conflict with Ukraine is now distinctly possible, Nobel Peace Prize laureate Dmitry Muratov said on Friday. 

Receiving his award at Oslo City Hall, Mr. Muratov said it was common in Russia to think that politicians who avoided bloodshed were weak, while threatening war was “the duty of true patriots”. 

Mr. Muratov, editor-in-chief of Russian newspaper Novaya Gazeta, won the 2021 award jointly with Maria Ressa of the Philippines, co-founder of news site Rappler, in recognition of their fight for freedom of expression. 

“The powerful actively promote the idea of war,” he said. “Moreover, in (the) heads of some crazy geopoliticians, a war between Russia and Ukraine is not something impossible any longer.” 

US officials have said Russia could soon invade Ukraine following a build-up of troops near the Ukrainian border. Moscow has denied it is planning an invasion. 

Mr. Muratov also said journalism in Russia was going “through a dark valley,” with over a hundred journalists, media outlets, human rights defenders and non-governmental organizations having been branded as foreign agents. 

“In Russia, this means ‘enemies of the people,’” Mr. Muratov said, dedicating his prize to all investigative journalists, and to colleagues at Novaya Gazeta killed because of their work. 

Mr. Muratov’s co-laureate Ms. Ressa reiterated her call for reform of social media platforms. 

“Our greatest need today is to transform that hate and violence, the toxic sludge that’s coursing through our information ecosystem, prioritized by American internet companies that make more money by spreading that hate and triggering the worst in us,” she said. 

“For the US, reform or revoke section 230, the law that treats social media platforms like utilities.” 

Ms. Ressa and Mr. Muratov are the first journalists to receive the Nobel prize since Germany’s Carl von Ossietzky won the 1935 award for revealing the Nazis’ secret rearmament program. 

Ms. Ressa noted in her speech that Von Ossietzky was never able to collect his award as he was held in a concentration camp and died in custody. 

“By giving this to journalists today, the Nobel committee is signaling a similar historical moment, another existential point for democracy,” she said. — Reuters

Trade deficit balloons to $4.02 billion in October

THE COUNTRY’S trade-in-goods deficit widened in October as merchandise import growth outpaced the growth in exports, the Philippine Statistics Authority (PSA) reported on Friday.   

Preliminary PSA data showed the value of merchandise exports grew by 2% to $6.41 billion.   

The October reading was a turnaround from the 0.9% drop in the same month last year, albeit slower than the 6.4% growth seen in September 2021.   

Meanwhile, the country’s merchandise imports rose by 25.1% to $10.43 billion in October. This marked a reversal from the 15.9% contraction in October 2020 but slightly faster than the 24.9% import growth in September 2021.  

This brought the trade-in-goods deficit to $4.02 billion in October, wider than the $2.05-billion shortfall recorded in the same month last year, as well as the $4 billion gap in September.    

Year to date, the trade balance ballooned to a $33.21-billion deficit, from a $20-billion gap during the same period in 2020. 

For the 10-month period, exports and imports jumped by an annual 16.1% (to $62.10 billion) and 29.7% (to $95.31 billion), respectively. These surpassed the Development Budget Coordination Committee expects exports and imports to rise by 10% and 12% this year.   

By commodity group, exports of manufactured goods – which accounted for 82% of the total overseas sales in October – dipped by 0.2% to $5.26 billion. Exports of electronic products, which made up 57% of total merchandise exports that month, rose 1.7% year on year to $3.65 billion. Semiconductors, which accounted for 72.3% of electronics, declined by 0.4% to $2.64 billion.   

Exports of petroleum products tanked by 95.6% to $252,060 in October from $5.71 million.  

Offsetting these decreases were higher exports of mineral products (by 20.5% to $551.78 million), agro-based products (10.9% to $456.18 million) and forest products (0.6% to $35.68 million).    

Meanwhile, imports of mineral fuels, lubricant and related materials grew by 163.7% to $1.65 billion, followed by raw materials and intermediate goods (23.5% to $4.18 billion), consumer goods (11.1% to $1.54 billion), and capital goods (4.5% to $2.99 billion).   

“This positive development despite global trade challenges is… attributed to the decision of the Inter-Agency Task Force on the Management of Emerging Infectious Diseases (IATF) not to disrupt exporters’ operations by allowing 100% capacity even during the Enhanced Community Quarantine (ECQ) and stricter Alert Levels. This, thus, boosted the performance of the sector and allowed them to fulfill their commitments to the global market,” Department of Trade and Industry (DTI) Secretary Ramon M. Lopez said in a statement.   

For the Trade chief, the coronavirus disease 2019 (COVID-19) pandemic has underscored the need to actively seek new markets and diversify export products in building a “resilient and agile export industry.”  

The DTI noted more than 3,700 exporters accessed new markets. It also recorded new exports in 32 product lines. 

Meanwhile, ING Bank NV Manila Senior Economist Nicholas Antonio T. Mapa noted in an e-mail that firms are “restocking drawn down inventories as they remain confident of the recovery efforts.”  

The economist added the growth in exports was weighed down by the mainstay electronics component which managed to expand marginally while the growth of imports was “bloated” by the more expensive crude oil. 

“However, despite the supersized trade deficit, the peso has managed to steady and will likely take its cues more so from the financial market flows set to be dictated by the pace of the [US Federal Reserve] taper and rate hikes,” Mr. Mapa said.    

“Gains of imports of capital goods remain shallow, managing a modest pickup, suggesting that potential output will remain curtailed for now. Meanwhile, concerns that the peso would rise rapidly to P53 [to a dollar] are likely to fade now.”  

JPMorgan Chase Bank N.A. Singapore Branch economist Nur Raisah Rasid said the results were “slightly higher” than what was expected.   

“New [coronavirus] cases continued to decline through October leading to a broad relaxation in mobility restrictions last month, thus we expect investment activity to pick up more discernibly in the coming months,” she said in a research note.   

Ms. Rasid also expects consumer goods imports to recover as the economy gradually reopens.   

“All told, we continue to look for a wider current account deficit next year of 2.3% of GDP (gross domestic product) from 1.1% of GDP ($4.3 billion) this year. As the [savings-investments] gap narrows alongside the broader recovery, the second-order effects from a growth-led currency weakness and impact on financial and price stability could set the stage for policy normalization in [the fourth quarter of 2022], or possibly earlier should the pace of growth recovery be faster than anticipated,” she said.   

In an e-mail, Asian Institute of Management economist John Paolo R. Rivera said supply constraints persist despite a pickup in demand amid the relaxation of lockdown restrictions in October.  

“This might continue until supply constraints are eased,” he said.   

Nevertheless, Mr. Rivera expects exports to “slowly catch up” given the improvements in the COVID-19 pandemic situation notwithstanding the threat of its potentially more contagious Omicron variant.   

In a separate e-mail, Security Bank Corp. Chief Economist Robert Dan J. Roces said he expects the trade deficit to to continue widening in the next few months given the economy is in recovery mode.   

“However, risks remain with the Omicron variant and a slowdown in China’s economy,” he said. – Abigail Marie P. Yraola with inputs from Marielle C. Lucenio 

September FDI inflows lowest in 4 months

REUTERS

Net inflows of foreign direct investments (FDI) climbed to $660 million in September, although this was the lowest in four months as the elevated number of coronavirus disease 2019 (COVID-19) cases dampened investor sentiment. 

Data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed FDIs increased 30.4% year on year to $660 million in September from $506 million.  

However, this was down 23.8% from the $866 million in August and the lowest since the $448 million inflows seen in May.  

The year-on-year increase in FDI net inflows reflected the low base effect and the improvement in economic activities as restrictions were gradually relaxed, said Ser Percival K. Peña-Reyes, associate director at the Ateneo de Manila University Center for Economic Research and Development (ACERD). 

“Compared to a year ago, understandably we were coming from the pandemic and the low base comparison. Also, the economy has been reopening,” he said in a phone call.  

However, Mr. Peña-Reyes said COVID-19 cases remained high in September, and there was uncertainty over efforts to contain the surge.  

“It’s only now that we are seeing numbers improve,” he said. 

He added the country’s lower ranking in a digital competitiveness index during the month may have also made it less attractive to foreign investors.  

According to IMD business school’s World Digital Competitiveness Ranking 2021, the Philippines fell two spots to 57th place due to lower scores in future readiness, technology and knowledge.  

BSP data showed foreign investments in debt instruments surged 60.2% to $538 million in September from $336 million during the same month a year ago.  

Reinvestment of earnings also went up 25.2% to $89 million during the month from $71 million a year earlier.  

On the other hand, FDIs in equity capital slumped 67.4% to $32 million in September from $99 million. Placements dropped 22.3% to $88 million from a year earlier, while withdrawals surged by nearly four times to $56 million.  

Investments in equity and investment fund shares likewise shrank 28.5% to $121 million from $170 million in September 2020.  

For the first nine months, FDI inflows stood at $7.288 billion, rising 43.8% from the $5.068 billion a year ago.  

Ateneo’s Mr. Peña-Reyes flagged the Omicron variant, which is said to be more transmissible, as a main threat to investor sentiment.  

“We still don’t know how big its impact will be. But if we are able to succeed in terms of pandemic management because we are already here for two years and if we can master [virus] containment strategies, it will be good for FDIs,” he said.  

In a briefing, central bank officials on Friday said it now expects FDIs to reach $8 billion this year. It previously expected $7-billion FDI inflows for the full year. — Luz Wendy T. Noble 

BSP revises current account, BOP forecasts as global economy rebounds

BW FILE PHOTO

MANILA – The Philippine central bank on Friday released revised projections for the current account and balance of payments this year and for 2022, reflecting it said the global economy’s recovery as well as lingering pandemic-related risks. 

The Bangko Sentral ng Pilipinas (BSP) now expects the country’s current account this year to post a deficit of $4 billion, or 1% of gross domestic product, revising its projection from a surplus equivalent to 0.9% of GDP. 

For next year, it projected a current account deficit of $9.9 billion, or 2.3% of GDP, wider than its previous deficit forecast equivalent to 0.3% of GDP. 

The balance of payments (BOP) is now projected to yield a narrower surplus of $1.6 billion, or 0.4% of GDP, this year, compared with a previous estimate of 1.1%. 

The BOP surplus in 2022 is expected to be even narrower at $700 million, or 0.2% of GDP, from a previous forecast equivalent to 0.4% of GDP. 

“The latest BOP assessment for 2021 factors in pockets of optimism amid encouraging economic outturns in recent months on the one hand, and the continued high uncertainty from pandemic-related challenges on the other hand,” the BSP said in a statement.  

But overall, it said the latest set of projections took into account a global economic recovery that is broadly on track and indications that the spread of the highly transmissible COVID-19 Delta variant has been contained domestically.  

The BSP, however, trimmed its year-end projections for gross international reserves to $111 billion and $112 billion next year, from $114 billion and $115 billion, respectively, to factor in some foreign loan repayments. 

Cash remittances by Filipinos overseas, a key pillar of the consumption-driven domestic economy, were expected to grow 6% this year and 4% next year, reflecting rising demand for Filipino workers. — Reuters 

Meralco rates go up in December

Manila Electric Co. on Friday said overall power rates will rise this month. -- Photo by Michael Varcas, The Philippine Star

Residential customers of Manila Electric Co. (Meralco) will see higher electricity bills in December as generation charges increased. 

In a statement on Friday, Meralco said the overall rate for a typical household went up by P0.3143 per kilowatt-hour (/kWh) to P9.7773 per kWh, from last month’s P9.4630 per kWh. 

Residential households consuming 200 kWh will see a P63 increase in their monthly power bills, while households consuming 300kWh, 400kWh, and 500kWh, will see an increase of P94, P126, and P157 in their bills, respectively. 

Meralco said the generation charge for December jumped by P0.1997 per kWh to P5.5343 per kWh. 

“This month’s charge already includes first of the four monthly installments covering the deferred costs from the November bill,” it said. 

The Energy Regulatory Commission (ERC) ordered Meralco to defer the collection of part of the suppliers’ generation costs. These costs will be collected from customers on a staggered basis  from December 2021 to March 2022. 

Meralco Head of Regulatory Management Office Atty. Jose Ronald V. Valles said the power rate adjustments would have been higher if not for the ERC directive and cooperation of its suppliers. 

Charges from power supply agreements (PSA) also went up by P0.2142/kWh due to the rise in international coal prices and lower dispatch of some PSAs. 

In contrast, charges from the Wholesale Electricity Spot Market (WESM) dropped by P.0669/kWh, as the power supply situation eased in Luzon alongside a decline in demand. 

Charges from Independent Power Producers (IPPs) also slipped by P0.1541/kWh as the gas supply from Malampaya resumed and Sta. Rita and San Lorenzo plants improved dispatch. 

In November, PSAs, IPPs, and WESM accounted for 45.7%, 38.2%, and 16.1%, respectively, of Meralco’s energy requirement, the company said. 

Meralco said the transmission charges for residential customers jumped by P0.0460/kWh due to higher Ancillary Service charge. It noted that taxes, system loss and other charges also added P0.0686/kWh. 

“This month’s residential rate includes a -P0.0053 rate for the Power Act Reduction (PAR) provision of Meralco’s current PSA with Power Sector Assets and Liabilities Management (PSALM), as provided for by the Republic Act 9136 covering supply from the National Power Corporation (NPC),” the power giant said. 

Meralco is still not collecting the universal charge-environmental charge of P0.0025/kWh, as it remains suspended by the ERC. 

ERC ACTION SOUGHT 

Meanwhile, consumer advocacy group Laban Konsyumer Inc. urged the ERC to stop the utility giant from collecting the deferred generation costs. 

“We had written this second letter to the commission requesting for moto propio hearings on the Meralco added costs and pending said hearings, to immediately issue a provisional authority to stop the collection of the deferred generation costs to ensure consumers are no longer made to incur these costs arising from the persistent gas restrictions and shutdowns of the Malampaya Deepwater Gas-to-Power Projects,” Laban Konsyumer President Victorio Mario A. Dimagiba said in a letter dated Dec. 7. 

Mr. Dimagiba said the group submitted the first letter to the Department of Energy on November 14 and was referred to the regulatory commission. 

ADDITIONAL SUPPLY 

At the same time, Meralco said it was preparing to secure additional supply to ensure there will be no power interruptions during the national elections in May. 

“We are closely coordinating with the DoE and National Grid Corporation of the Philippines so we rely on their outlook forecast, but on our part, we are preparing for this by proposing to undertake a competitive selection process (CSP) for a 170MW of supply,” Meralco Vice President and Head of Utility Economics Larry S. Fernandez said on Friday during a virtual press conference. 

Meralco said they are just waiting for the DoE’s response to this proposal and will proceed accordingly once awarded. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Marielle C. Lucenio 

September wholesale price growth of general goods nears 7-year high

The country’s general wholesale price index (GWPI) increased by 2.8% from a year earlier in March. -- Photo by Michael Varcas, The Philippine Star

Nationwide bulk prices of general goods rose to its highest level in nearly seven years in September due to higher fuel prices and the low base effect. 

Preliminary data from the Philippine Statistics Authority (PSA) on Friday showed the country’s general wholesale price index (GWPI), which monitors the wholesale trade sector and serves as a basis for price adjustments in business contracts and projects, picked up to 3.3% in September from 3.2% in August and 2.2% in September 2020. 

It was the highest reading in 82 months or almost seven years since the 3.7% growth recorded in November 2014, the PSA data showed.  

The statistics agency attributed the surge that month to the following commodities: mineral fuels, lubricants and related materials (22.8% from 19.4% in August); beverages and tobacco (5.3% from 4.7%); food (1.3% from 1%); manufactured goods classified chiefly by materials (5.8% from 5.6%); miscellaneous manufactured articles (0.5% from 0.3%; and machinery and transport equipment (1.2% from 1%). 

Slower growth rates were recorded in chemicals including animal and vegetable oils and fats (4.3% in September from 5.3% in August) and crude materials, inedible except fuels (21.6% from 29.6%). 

By island group, Luzon reflected the national level’s pace as its GWPI climbed by 3.4% in September, higher than the 3.2% in August and 2.3% in September last year. 

The GWPI of the Visayas and Mindanao, meanwhile, eased to 0.4% (from 1.1% in August) and 4.9% (from 5.2%), respectively. 

The oil price increases in September triggered the higher GWPI print, Cid L. Terosa, senior economist at the University of Asia and the Pacific School of Economics, said in an e-mail interview. 

“Base effects were at play aside from higher prices of production inputs such as mineral fuels due to supply chain disruptions, bottlenecks, and rigidities,” Mr. Terosa said. 

Price adjustments for gasoline, diesel, and kerosene increased by P15.10, P12.95, and P10.65 per liter, respectively, data from the Energy department as of end-September showed. 

The rise in wholesale prices can trigger an increase in retail prices, which can pull back the economic growth momentum, he added. 

“Towards the end of the year, the annual GWPI will rise faster than last year as demand continues to pick up due to the easing of pandemic-related restrictions. Also, supply bottlenecks can add upward pressure on wholesale prices,” Mr. Terosa said. — Bernadette Therese M. Gadon