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Inflation picks up in June

The overall year-on-year increase in prices of widely used goods accelerated in June following four straight months of slowing down, the Philippine Statistics Authority (PSA) reported this morning.

Preliminary data from the PSA showed headline inflation at 2.5% last month, picking up from the 2.1% pace in May, albeit still slower than the 2.7% inflation rate in June 2019.

The latest headline figure is higher than the 2.2% median in a BusinessWorld poll conducted late last week and falls within the 1.9%-2.7% estimate given by the Bangko Sentral ng Pilipinas (BSP) for June.

Year to date, inflation settled at 2.5%, still within the BSP’s 2%-4% target band and above the 2.3% forecast for the entire 2020.

Core inflation, which discounted volatile prices of food and fuel, stood at three percent in June, accelerating from 2.9% the previous month, but still slower than the 3.3% logged last year. So far, it averaged three percent for the year.

Likewise, the PSA reported preliminary figures for inflation as experienced by low-income households for June. That month, inflation for the bottom 30% of income households grew three percent, faster than the 2.9% in May, but slower than the 3.1% in June 2019.

For the year, the bottom 30% inflation averaged 2.5%.

The consumer price index for the bottom 30% modifies the model basket of goods to reflect the spending patterns of the poor. This compared to the headline CPI which measures inflation as experienced by the average household. — Jobo E. Hernandez

Syngenta Group to invest $2 billion in sustainable agriculture by 2025

– Ipsos MORI survey: 72% of farmers have significant concerns about the impact climate change will have on their ability to grow food over the next five years

– In Europe 46% of farmers say the additional pressure of the coronavirus pandemic has had a substantial impact on their business

– Syngenta Group CEO Erik Fyrwald launches new Good Growth Plan and says post-Covid agriculture needs accelerated innovation to recover better and fight climate change

A global survey of large scale farmers in the USA, France, China, Brazil, India and across Africa for Syngenta Group found 72% are worried about the impact climate change will have on crop yields, animal health and their ability to do business over the next five years.

Farmers everywhere have also had to deal with unparalleled upheaval because of the Covid-19 pandemic. A separate survey of European farmers found 46% said their businesses had been significantly impacted by the coronavirus pandemic. However, 53% said climate change was still the immediate priority and 63% agreed climate change would have a greater impact on their business than Covid-19 over the next five years.

The Syngenta Group today launched its new Good Growth Plan, placing the fight against climate change and biodiversity loss at the core of agriculture’s recovery from the economic and social effects of the Covid-19 restrictions.

The new Good Growth Plan includes bold new commitments to reduce agriculture’s carbon footprint and to help farmers deal with the extreme weather patterns caused by climate change.

Erik Fyrwald, Chief Executive Officer at the Syngenta Group said: “Since its launch the Good Growth Plan’s principles and priorities have become deeply embedded in the way we do business at Syngenta. The plan was of course, just the start.

“The coronavirus pandemic has revealed the fragility of the agriculture ecosystem. Like a pandemic, climate change is an inevitable threat that we must address before it is too late. As the economy and agriculture begin to build back with the gradual easing of the Covid-19 restrictions, we need to support a recovery for farmers that puts the fight against climate change and biodiversity loss at its core.”

The survey by Ipsos MORI for Syngenta Group found more than four in five farmers surveyed believed climate change has had at least some impact on their ability to grow food and most (59%) believed reducing greenhouse gas emissions would make their farms more financially stable or competitive.

Syngenta Group today reveals it has achieved or exceeded all the targets from the original Good Growth Plan launched in 2013, including bringing more than 14million hectares of farmland back from the brink of degradation and enhancing biodiversity on more than 8million hectares of farmland.

Under the new Good Growth Plan, Syngenta Group is committed to invest $2billion in sustainable agriculture by 2025 and to deliver two technological breakthroughs to market each year. The specific commitments in the new plan are divided into four areas:

– Accelerate innovation for farmers and nature

– Strive for carbon neutral agriculture

– Help people stay safe and healthy

– Partnering for impact

This includes a commitment to reduce the carbon intensity of its operations by 50% by 2030 to support the goals of the Paris Agreement on climate change. Syngenta’s commitment has been validated and endorsed by the Science Based Targets initiative (SBTi). Syngenta Group also recently signed up to SBTi’s commitment to prevent a global temperature rise of over 1.5 degrees.

Alexandra Brand, Chief Sustainability Officer at Syngenta Group said: “When we speak to farmers, we see they are the first to be harmed by climate change and biodiversity loss. Now the Covid restrictions could also have long lasting effects on the food and agriculture sector.

“That’s why the significant levels of investment in innovation that you see in the new Good Growth Plan are needed to fight climate change and provide for a food system working in harmony with nature.”

An example which demonstrates the depth of the commitment that Syngenta Group is making is the announcement of a partnership with the Solidaridad Network. Its objective is to implement sustainable solutions at scale that empower farming communities to achieve food security in a number of developing regions. One such project is focused on coffee in Colombia, which aims to help smallholders increase their incomes by 25% by tackling the coffee borer beetle.

Heske Verburg, Managing Director of Solidaridad Europe, says: “We believe that sustainable agricultural production should be the norm. Our partnership with Syngenta aims to support farmers in developing countries to improve their livelihoods, while producing in balance with nature. The products of Syngenta are a daily reality for many farmers across the world, our partnership will deliver important insights into achieving sustainable production at scale.”

This is in addition to an already established partnership with The Nature Conservancy announced in October 2019 on the Reverte project in Brazil, which aims to regenerate 1 million hectares of degraded farm land over the next 5 years.

Jennifer Morris, Chief Executive Officer at The Nature Conservancy said: “Climate change and biodiversity loss, coupled with growing demand for food, are putting increasing pressures on the planet and eroding the productivity and resilience of farms, ranches, and fisheries around the world. The impacts of COVID-19 make addressing these challenges even more urgent. Reversing these troubling realities will require working across sectors for smart, scalable solutions that ensure a future where people and nature thrive. TNC recognizes the role producers around the world have in building solutions and is pleased to collaborate with Syngenta Group on the ambitious pursuit of a food system that works in partnership with nature.”

Erik Fyrwald will participate in an online event organized by Euractiv at 14:30CET today. You can follow the event here

BTr to offer retail bonds next week

By Beatrice M. Laforga, Reporter

THE Bureau of the Treasury (BTr) will offer retail Treasury bonds (RTBs) for the second time this year to take advantage of low rates and boost state coffers for its coronavirus disease 2019 (COVID-19) response.

National Treasurer Rosalia V. de Leon on Monday said the offer period for the RTBs will start next week. The proceeds will be used to support the national budget.

“BTr will offer RTBs and [the] auction will be on July 15. We are taking advantage of low rates and provide secure investment outlets. Win-win proposition and demonstrates our solidarity against pandemic,” she told reporters via Viber.

Ms. De Leon declined to give further details about the issuance including the tenor and volume. She said additional details will be released within the week.

This will be the second time the BTr will issue RTBs this year and its 24th overall. Last February, it raised a record P310.8 billion from its sale of RTBs — comprised of P250 billion from “new money” and P60.8 billion from the exchange offer program.

These types of securities are offered to small investors as they consist of low-risk, higher-yielding savings instruments backed by the National Government.

ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa said they expect the tenor to be between three to seven years but shorter than 10 years after BTr’s sudden shift of its borrowing program for this week to 10-year Treasury bonds (T-bonds) from the initial plan to offer seven-year bonds.

“We’ve been expecting the possible issuance for an RTB for some time now given the financing requirements of the government to fund COVID-19 rescue efforts. With the bevy of liquidity and low rate environment, this was the perfect time for the government to float a retail Treasury bond to corner a good chunk of funds for its spending needs,” Mr. Mapa said in an e-mail.

Mr. Mapa said issuing the RTB on top of the planned 10-year offer on Tuesday “will put upward pressure on longer-dated yields,” while the movement of the rates for the short-term tenors will be based on inflation in June, which he sees at 2.3%.

A BusinessWorld poll of 16 economists last week yielded a median estimate of 2.2% for headline inflation in June, still slower than the 2.7% a year ago but slightly faster than the 2.1% in May.

The government borrows from domestic and foreign lenders to plug its budget deficit seen to hit 8.4% this year.

“We hope that with the government moving aggressively to secure funding, robust spending measures will be implemented to stave off a downward spiral in our economic growth trajectory,” Mr. Mapa added.

For July alone, the BTr has set a P205-billion borrowing program and will offer P145 billion in T-bills via weekly auctions and P60 billion in T-bonds to be auctioned off every other week.

In late April, the government sold $2.35 billion in dollar-denominated global bonds: $1.35 billion in 25-year bonds with a coupon of 2.95% and $1 billion via 10-year notes at 2.457%. The papers were issued on May 5.

The economy shrank 0.2% in the first quarter and is projected to slump by 2-3.4% for 2020.

Consumption still weak amid virus uncertainty

By Luz Wendy T. Noble, Reporter

HOUSEHOLD spending remains weak as uncertainty over the coronavirus disease 2019 (COVID-19) continues to weigh on consumer sentiment, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Monday.

“We will see a significant bulk of consumers holding back on their consumption,” Mr. Diokno said in a virtual briefing at Malacañang.

“With household consumption and balance sheets adversely affected alongside precautionary behavior amid continued uncertainty and fear of contagion, this will further dent consumption and investment and ultimately economic growth,” he added.

Consumption is the main driver of the country’s economy, making up 70% of the gross domestic product (GDP). Disruptions caused by the Taal Volcano eruption and the Luzon-wide lockdown led to a 0.2% GDP contraction in the first quarter.

Mr. Diokno warned the second-quarter contraction will be worse, as the quarantine measures continued throughout the period.

“Without doubt, the downturn in the second quarter of 2020 will be deeper as the extension of the lockdown further dampens domestic demand and lowers production activity,” he said.

The central bank chief reiterated the economy needs to be reopened with health standards in place to further curb the spread of COVID-19.

Mr. Diokno earlier said he expects the third quarter to still be in contraction, albeit less than the second quarter as business operations gradually resume.

The government projects the economy to shrink by 2-3.4% this year.

While the central bank’s easing measures are meant to support market and consumer confidence, Mr. Diokno reiterated that fiscal policy will drive economic recovery.

The Monetary Board in June has slashed overnight reverse repurchase rate, lending, and deposit facilities by 50 basis points to record lows of 2.25%, 2.75%, and 1.75%, respectively.

However, Mr. Diokno stressed the “need for substantial targeted economic policies with fiscal policy at the frontline and monetary policy playing a supporting role.”

He said consumers and businesses should take advantage of the low interest rate environment.

“Kailangan nating i-open up ’yung economy kasi as long as we’re afraid to consume, to buy, afraid to invest, afraid to produce, walang mangyayari sa ekonomiya natin (We need to open up the economy because as long as we’re afraid to consume, buy, invest, produce, nothing will happen to the economy),” the BSP chief said.

Ateneo de Manila University professor Alvin P. Ang said the monetary policies are meant to support fiscal policies that are much needed at this point. He said the record low rates will have a bigger impact on formal borrowers and lenders.

“[Y]ou may have to continue to give people income support and firms some subsidy to pay for their dues. The virus limits movement and even if there is a good idea out there, there might be no buyers since people are staying home or have not enough income,” he said in a text message.

For Mr. Ang, marginalized Filipinos will only feel the impact of the BSP’s aggressive monetary stance “if the goods and services prices fall and it creates jobs.”

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the impact of the BSP’s move to Filipino consumption would be hard to gauge for people with no access to financial institutions.

“This is why a national ID could have been a game-changer. But for some that have access, low interest rates are enticing and can encourage consumption,” Mr. Asuncion said in a text message.

On the fiscal side, Mr. Asuncion said the P1.3-trillion stimulus package of the ARISE (Accelerated Recovery and Investments Stimulus for the Economy) bill would do more than enough to help the economy recover.

The bill, which is still pending in Congress, allocates P110 billion for wage subsidies, P50 billion for loans to small businesses, and P58 billion for tourism, among others.

Online sellers of ‘sin’ products should check customers’ ages — DTI

ONLINE vendors should make sure cigarettes and alcoholic beverages are sold only to customers over the age of 18, the Trade department said on Monday as the government considers a ban on online sales of the so-called “sin” products.

“We allow only those (online sellers) asking for age and only DELIVERING to buyers with the right age (to operate),” Trade Secretary Ramon M. Lopez said in a text message to reporters on Monday.

Mr. Lopez reiterated the government may ban online sales of cigarettes, liquor, e-cigarettes and similar devices if the vendors are not properly registered, if they do not check the customer’s age, and if the products did not pass the regulator’s standards.

Finance Secretary Carlos G. Dominguez III said over the weekend they will move to ban online sale of these sin products if vendors are found to be selling these to people under 18 years old.

PMFTC, Inc., a joint venture of Philip Morris Philippines Manufacturing, Inc. and Fortune Tobacco Corp., said the company is implementing an “age-gating” rule for online resellers of its cigarettes so minors cannot access them.

PMFTC Communications Director Dave M. Gomez said online resellers are also required to ask customers to provide a document proving their age before they can receive the product.

“For online commerce, resellers of cigarettes should strictly observe youth access prevention by having age-gating on their sites and require proof of age upon delivery. This is our policy,” he said via e-mail on Monday.

“The law is clear. It is unlawful to sell cigarettes to individuals below 18 years old whether in person or online. We understand the concern and agree that cigarettes should not be sold to minors even online,” Mr. Gomez added.

Mr. Lopez said they are now in discussion with the Department of Finance (DoF) on setting up a system where online selling platforms register with the Department of Trade (DTI) and the Bureau of Internal Revenue (BIR) to make sure that they are tax compliant and conduct a customer check from point of sale up to the receipt of goods.

“If it is allowed in brick-and-mortar (stores), it must be allowed in online, AS LONG AS Registered and standard compliant and original products are sold especially on sin products because any fake item means tax evasion. This is to ensure all sales are tax paying,” the Trade chief added.

Philippine laws prohibit the sale of cigarettes and alcoholic beverages to minors.

BusinessWorld sought comment from alcohol industry groups and e-commerce platforms but received no response as of writing.

In June, the BIR issued Revenue Memorandum Circular (RMC) No. 60-2020 giving online sellers until July 31 to register their business with the bureau or update their registration.

DoF and BIR are now studying how to tax the digital economy. The DoF estimated the government could raise an incremental revenue of P14-17 billion from the 12% VAT charged on online transactions. — Beatrice M. Laforga

UK investors still keen on Philippines

THE British Chamber of Commerce of the Philippines (BCCP) is retaining and attracting new members in the Philippines throughout the lockdown, with new investments possibly materializing in the long term.

None of their existing member companies have withdrawn their investments, BCCP Executive Director Chris Nelson said in a television interview on Monday.

“We’ve actually had some new members join during this time,” he said. “People are not leaving. In fact, where I would like to give slight encouragement is we’re actually getting inquiries and interest in the Philippines.”

In a separate phone interview, Mr. Nelson said the interested companies are in the energy, automotive, beverage, and food industries.

While the chamber has been engaging with the companies online, there may be some investment delays as the companies wait for restrictions on business travel to ease.

“Our understanding is that it’s quite restricted in terms of foreign visitors, and that’s important as well because we’re getting interest from business people about opportunities in the Philippines,” Mr. Nelson said.

The discussions are about long-term projects, with many possibly materializing after at least a year as the health crisis is still ongoing.

“Companies that we’re trying to deal with are looking long term. While of course this crisis is immediate and hopefully we’ll get a handle on it and move forward across the world, companies are thinking long term and want to build businesses over a number of years. They look at it in that perspective and that’s why I believe the Philippines is still attractive,” Mr. Nelson said.

‘ON HOLD’
The European Chamber of Commerce of the Philippines (ECCP) sees major investment decisions will be on hold.

“Given the significant impact of COVID-19 on businesses, majority of our members are inclined to maintain status quo or put on hold major investment decisions in order to focus on their post-COVID-19 recovery plans to ensure business continuity in the short- to medium-term,” ECCP President Nabil Francis said in a mobile message.

“Nonetheless, further liberalizing key economic activities must also be on top of the agenda of the Philippine government’s policy priorities to create an attractive investment and business environment,” he added, saying that other Southeast Asian countries have already started unveiling incentives and lowering corporate income tax rates to be more competitive.

Mr. Francis said the negative trend in foreign direct investments is not encouraging.

The Board of Investments reported a 71% decline to P84.1 billion in approved investments in the first four months of 2020 after the pandemic disrupted economic activity, with foreign investments dropping 80% to P13.4 billion.

Mr. Nelson said the chamber is supporting a move towards a more relaxed lockdown in Metro Manila, with localized strict lockdowns in higher-risk areas.

“People (in other countries) are now much more focused on localized lockdowns on specific areas, even on building sites… we think that’s the way forward,” he said.

The Philippine Chamber of Commerce and Industry (PCCI) had recently requested the easing of travel restrictions, supporting the aviation industry in its request to gradually phase out the quota for international passenger arrival, resume international business travel, and allow some local air travel.

The BCCP continues to support the Accelerate Recovery and Investments Stimulus for the Economy (ARISE) bill, a P1.3-trillion three-year economic stimulus.

More than 40 business groups, including other foreign chambers, backed the stimulus bill in June, saying that it will support the recovery of small businesses. — Jenina P. Ibañez

COVID-19 or no COVID-19, PhilPop will go on

Song tilt partners with Warner Music for promotion

DESPITE an ongoing global pandemic, the biennial songwriting competition PhilPop Music Festival will continue to “break borders” to push Philippine music forward to the global stage, partnering with music label Warner Music Philippines to promote the songs of the competition.

“[W]e are an international major record label. We do have a network of A&R and marketing people all around the world. In terms of judging and production process, we’ll bring that unique value of this presence to the project. We share this ambition to elevate the Filipino artist to a global stage. It’s a difficult path, but I think with our partnership, we can improve the odds,” Ian Monsod, managing director of Warner Music Philippines, said during a July 2 digital briefing held via Zoom.

Warner Music Philippines is part of the multinational music label Warner Music Group, considered one of the biggest music labels in the world alongside Universal Records and Sony Music Entertainment. Locally, the label has signed artists such as Keiko Necesario, Ben&Ben, the rapper Quest, and many others.

Now on it’s eighth installment, the songwriting competition — fashioned after the defunct Metro Manila Popular Music Festival or Metropop which was held annually from 1978 to 1985 — is continuing its focus on “decentralizing the monopoly of support to Metro Manila [artists]” by “giving equal opportunity to the next generation of singer-songwriters based in other cities and provinces, regardless of their identity, language and cultural affiliation,” said Dinah Remolacio, PhilPop Music Fest Foundation executive director, during the same briefing.

During the 2018 competition, the festival’s organizers — which include National Artist for Music Raymundo “Ryan” Cayabyab and folk singer Noel Cabangon — reported that they had seen a marked increase in submissions from the Visayas and Mindanao after the competition shifted from being an annual one as it had been from 2012 to 2016, to biennial in 2017, using the gap year to hold songwriting camps to better encourage and teach aspiring artists from around the country.

The 2018 installment saw Davao songwriter Chud Festejo win the grand prize for the song “Nanay Tatay.”

“When we had [a] major pivot… the first thing that we did [was] to make the festival biennial. In between those years, we mounted all these songwriting workshops in different parts of the country to empower other songwriters in the region, so that they could submit entries to PhilPop. We want to diversify the winning entries in every festival,” Ms. Remolacio said.

This year, submissions will be grouped into four regions: Metro Manila, South Luzon, North Luzon, Visayas, and Mindanao. Of the “thousands of songs submitted,” according to a release, only three songwriters will be chosen to represent each region “through [a] rigorous adjudication process spearheaded by Warner Music Philippines and PhilPop.”

The top 15 will be working with Warner Music to polish their songs and compete in the finals scheduled on Nov. 14, though no announcement has been made whether there will still be a live finals concert or will it be only a digital finals’ night because of the COVID-19 pandemic.

The finalists for each region will be announced starting Oct. 2 in Mindanao until Oct. 30 for Metro Manila.

The winner of the PhilPop music festival will get P1 million (tax-free) while the first runner up will get P500,000 and the second runner-up P250,000. — Zsarlene B. Chua

Production cliff-edge forces TV industry to plunder the past

BROADCASTERS are having a hard time trying to replace canceled sporting events and live-action TV with something people want to watch.

Their plight will only worsen in coming months, when documentaries and scripted programs that couldn’t be made because of the coronavirus would normally begin to hit screens. Some filming has resumed, but most of the industry is still in limbo because producers can’t get insurance for shoots and many crews and actors can’t or won’t travel.

So network commissioners are heading back in time — piecing together new shows out of clips from old programs and movies, newscasts, interviews, documentaries, footage of major events, and random shots of people and places.

Producer Dan Sharp was about to begin shooting a follow-up season of Disasters Engineered when the UK went into lockdown. Suddenly, his production company SWR Media could no longer travel the globe in search of material for the show about high-profile engineering projects that went wrong.

“We needed a solution to still get this thing done and fundamentally get it done at the same quality level, not some coronavirus version of the season,” said Mr. Sharp.

One result is that season two relies more heavily than the first on material from Getty Images, owner of the world’s biggest commercial film archive.

Another problem was finding a way to do interviews in other countries while in lockdown: Zoom or Skype won’t make the cut for shows likely to be aired after the pandemic subsides.

As Sharp’s team couldn’t jump on a plane, they decided to hire local crews with professional equipment, dressing them in personal protective equipment and directing each interview over a laptop. It’s an innovation he hopes will become permanent.

“Last Friday I did five interviews — one in Japan, two in Chicago and two in Florida,” said Mr. Sharp. “I said to myself ‘That would have been a week’s work with all the traveling and all we’re doing is dialing in and dialing out.’”

NOSTALGIA VIEWING
Getty Images is working with several TV companies that have pivoted to using more archive content, said Paul Davis, its senior EMEA sales director.

“We’ve become almost an extension to the creative teams at production companies to help them create dramatic and inspiring narratives,” he said.

ITV Plc, Britain’s biggest free-to-air commercial broadcaster, developed a program that spotlights former stars of Coronation Street, the country’s longest-running TV soap opera, using interviews and clips from old episodes.

STV Productions made a series for Channel 5 about the British royal family’s fractious relationship with the tabloid media that relied on licensed archive and news footage from the past 60 years and fresh interviews conducted remotely using iPhones.

A+E Networks UK, which owns channels including Sky History and Blaze, got producer CIC Media to turn a show commemorating the 75th anniversary of the allied victory in Europe into Race to Victory, a six-part series about the relationship between Churchill, Roosevelt, and Stalin filled out with reams of archive material.

“What’s interesting about lockdown viewing is there’s a clear appetite for nostalgia viewing and escapism,” said Dan Korn, vice-president of programming at A+E Networks UK.

A+E Networks has even dipped into social media in search of material, commissioning a show about Alec Steele, a 22-year-old English blacksmith who took his business to the wilds of Montana. The producer of Forged With Steele, Studio 71, repackaged footage from Steele’s mostly self-filmed YouTube show.

While broadcasters are keen to turn a page on the pandemic, partly under pressure from advertisers looking for more upbeat content, the mood across UK TV production is still desperate. Government furlough support is starting to wind down and around 1,000 visual effects workers — about an eighth of that sector’s entire workforce — are at risk of redundancy by August, according to Neil Hatton, chief executive officer at the UK Screen Alliance.

“Everything I hear from most production companies is that it’s just your worst nightmare,” said Alex DeGroote, an independent media consultant and analyst. “There’s a sense that some aspects of the production industry cycle are beginning to normalize, but it feels fragile. Another coronavirus spike in the US in particular could put everything into reverse.” — Bloomberg

Meralco to refund electricity bills paid by customers wanting installment plan

By Adam J. Ang

MANILA Electric Co. (Meralco) will be issuing refunds to customers who wanted to pay their bills incurred during the lockdown period in installments but have already paid these in full last month.

The power utility giant was further grilled by legislators during the Senate energy committee hearing on Monday about the mounting complaints on its “confusing” electricity bills since the lockdown started.

“Sa mga nagbayad in-full ng kanilang mga bills, bagamat sila ay entitled sa installment plans, mayroon din kaming advisory na kung nagbayad kayo at gusto ninyo ng installment plan, ire-refund ng Meralco lahat ng binayad ninyo at makakatanggap kayo ng installment letters para i-itemized ang installment plan ninyo,” Meralco President and Chief Executive Officer Ray C. Espinosa told senators.

(We have stated in an advisory that if you have fully paid your bills but you intend to pay in installments, Meralco will be refunding your payment. You will later receive a letter specifying your installment plan.)

The apparent confusion on last month’s twin bills showing the installment plan and the actual June bill may have pushed consumers to fully settle their accrued bills between March and May by end-June, which is actually the due date for last month’s bill.

“Nakalagay sa June bill ng Meralco na hindi na ito kasama sa installment plan na pinapayagan ng pamahalaan, kaya dapat daw fully paid na by June 30. Hindi rin malinaw kung estimate amount lang ‘yung chinarge nila from February to April, or actual meter reading na siya,” Sen. Risa N. Hontiveros-Baraquel said.

(Based on Meralco, the June bill is no longer covered in the installment plan as mandated by the government, that’s why it was taken as if consumers have to pay their unpaid bills by June 30. It was not also clear if the bill is the estimated amount between February and April or the amount from actual meter reading of consumption.)

In June, the Energy Regulatory Commission (ERC) filed a show-cause order to the listed utility for its alleged violation of the regulator’s advisories during the quarantine period. Among others, it was accused of supposedly breaching its rules on estimated billing.

Sen. Sherwin T. Gatchalian, who chairs the Senate energy committee, urged the regulator to order the refund of payments for those customers whose bills will be found overestimated.

In its May 22 advisory, the ERC ordered the staggered payment of bills during the lockdown period. For customers with 200 kilowatt-hours of consumption and below in February, they are allowed to pay their bills in six portions, while those with 201 kilowatt-hours and above will have to settle their bills in four installments.

The installment bills are supposed to be paid every 15th day of the month.

Further, Meralco vowed to clarify anew how it came up with customers’ bills in the past four months by sending out personal clarificatory letters this July.

“I believe there has been basically a failure on our part to clarify to our customers what is actual and what is estimated. For that, I wish to apologize to you and to all similarly situated customers,” Mr. Espinosa said.

“It is not Meralco’s business to charge customers beyond what they consume,” he added.

The letter is particular for power users whose meters were read in May but whose bills contain a “previous reading” that is based on estimated consumption in March and/or April.

Meanwhile, Mr. Espinosa promised to waive the P47-convenience charge levied to customers paying their bills online during both the enhanced community quarantine and the latter general quarantine phase.

These additional fees, according to Meralco, are charged by PayMaya, its sister company, and are not remitted to the utility company.

PROBE SOUGHT ON POWER UTILITIES’ NON-COMPLIANCE
Mr. Gatchalian also ordered the ERC to investigate electric utilities across the country that may not be complying with its advisories, especially on the suspension of the collection of some components of the electricity bill.

In his presentation, the Senate energy committee head cited some electric cooperatives that have been charging universal charges for environmental charge, the collection of which was suspended in the June billing month, and feed-in-tariff allowances, which were not supposed to be collected between March and April.

When asked about this, ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said: “Marami pong nag-violate dito. At ‘yan ang basis namin ng pag-issue ng show-cause orders sa [mga] distribution utilities at electric cooperatives.”

(Many have violated these directives, and this is our basis for issuing show-cause orders to them.)

The ERC, which reported to be handling over 47,000 consumer complaints, asked Mr. Gatchalian to give it more time in addressing various power utility issues.

“I really have to ask [for] your patience because right now we are also organizing our people to be able to respond to the 47,000 [complaints],” Ms. Devanadera said.

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 interest in BusinessWorld through the Philippine Star Group, which it controls.

YouTube slammed by Grammy winner for not protecting copyrights

AN Grammy-award winning composer sued YouTube for failing to protect her and other “ordinary creators” from unauthorized copying and use of their work on the giant video-sharing platform.

Maria Schneider, who has won five Grammy Awards, most recently in 2015 in the category of Best Large Jazz Ensemble Album, says YouTube’s system for policing copyright infringement protects the “behemoths of the creative industry,” such as large movie studies and record labels, but leaves small producers to essentially fend for themselves.

YouTube’s digital tool Content ID ferrets out unauthorized use of copyrighted material. But the tool is only provided to large content providers, according to Ms. Schneider.

Others, including herself, “are relegated to vastly inferior and time-consuming manual means of trying to police and manage their copyrights, such as scanning the entirety of YouTube postings, searching for keywords, titles, and other potential identifiers,” according to the complaint filed last week in federal court in San Jose, California. The suit also names Google and Alphabet Inc. as defendants.

YouTube declined to comment on the suit. But the company maintains that it’s committed to protecting intellectual property rights and stopping privacy.

Ms. Schneider is asking for monetary damages and an order forcing Google to give content providers better tools to police copyright infringement. She is also asking for the court to certify the lawsuit as a class-action to represent other YouTube content providers.

“A vast library of pirated content draws users to the site, and the growth in users incentivizes the posting of more content on YouTube, which in turn enables defendants to reap more advertising revenue,” according to the complaint. — Bloomberg

SEC warns investors about Wealthness Global scheme

THE Securities and Exchange Commission (SEC) is warning the public against participating in investment opportunities offered by a certain Wealthness AM Global Corp. (Wealthness Global).

In a notice on its website, the country’s corporate regulator said Wealthness Global is unauthorized to solicit investments from the public.

It said it has investigated the group and found that it was offering several investment packages to the public priced from P270 to as much as P3,600 in exchange for opportunities to earn through captcha typing.

Once registered, a member will be given captchas to solve that will earn them points that may be converted to cash.

The group also offers other earning methods such as by direct selling of products, which are health capsules and soaps, by recruiting new members, and by having the recruited members recruit more new members.

The SEC said Wealthness Global’s operations involve schemes that are equivalent to selling securities to the public. For such an operation to be authorized, the SEC requires that a company obtains a secondary license from the commission for this specific purpose.

However, Wealthness Global’s registration with the SEC is as a corporation engaged in buying, selling and importing food supplements, cosmetics and electronic gadgets.

The SEC noted the company was told not to solicit, accept or take investments/placements from the public nor issue investment contracts.

Doing so is a violation of the Securities Regulation Code, which spells penalties for those who acted as salesmen, brokers, dealers or agents for Wealthness Global: a fine of up to P5 million, imprisonment of up to 21 years, or both.

“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of Wealthness Global and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” the SEC said.

Wealthness Global was sought for comment but did not respond as of press time. — Denise A. Valdez

Britain says to put nearly $2 billion into arts to help survival

LONDON — Britain will invest nearly $2 billion in cultural institutions and the arts to help a sector that has been crippled by the COVID-19 pandemic and lockdown, Prime Minister Boris Johnson said on Sunday.

Theaters, opera houses, and ballet companies have been left without a live audience for months.

Though English museums and cinemas can re-open with strict social distancing in the latest easing of lockdown which began on Saturday, guidelines still dictate no live performances at theaters or concert halls.

That has created an existential crisis for much of the sector, which has been vocal in calling on the government for support.

“This money will help safeguard the sector for future generations, ensuring arts groups and venues across the UK can stay afloat and support their staff whilst their doors remain closed and curtains remain down,” Mr. Johnson said in a statement.

The government said the 1.57-billion pound ($1.96 billion) investment was the biggest ever in Britain’s culture sector.

It said that Britain’s museums, art galleries, theaters, independent cinemas, heritage sites, and music venues would be protected through emergency grants and loans.

The government will consult with figures from Arts Council England, the British Film Institute and other specialist bodies on awarding grants, while it said repayable finance would be issued on affordable terms. — Reuters

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