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Nationwide round-up

DoH: Test kits enough, but not other supplies and logistics for labs


THE Department of Health (DoH) said the country has sufficient testing kits for the coronavirus disease 2019 (COVID-19), but related supplies and logistics for laboratories are a challenge.

“Marami po tayong supplies ng testing kits (We have a lot of testing kit supply). It is sufficient for our needs. What we are having problems with right now are the other logistics for the laboratories, ‘yung ibang (other) reagents,” Health Undersecretary Maria Rosario S. Vergeire said in a virtual press briefing.

Some equipment, she added, are “very hard to source out because there is international competition.”

As of May 15, the DoH said a total of 207,823 individuals have been tested while remaining available test kits are 829,982.

Meanwhile, Ms. Vergeire said the test kits developed by scientists from the University of the Philippines-National Institutes of Health were recalled following minor problems found by the Research Institute for Tropical Medicine (RITM).

The problems, which she did not disclose, are now being addressed.

“(T)hey are on to the final stages of correcting the identified deficiencies,” she said, adding that the RITM might be able to revalidate the kits by next week.

RAPID TESTS
Meanwhile, Presidential Adviser for Entrepreneurship Joey Concepcion asserted that it’s “better to test than not to test” after medical groups said rapid test kits for COVID-19 have a high rate of false positives.

In a Laging Handa briefing on Wednesday, Mr. Concepcion said undertaking rapid testing is a means to get the economy moving again.

“Kung magsasarado ulit ang economy ng Pilipinas, marami ulit ang mawawalan ng trabaho (If we close the economy of the Philippines again, a lot of people again will lose jobs),” he said.

Lockdown restrictions have been eased starting May 16, with more industries allowed to resume operations. Private companies are required to implement safety standards, including monitoring the health condition of workers.

Mr. Concepcion initiated Project ARK, a program backed by the private sector that is undertaking massive testing using antibody rapid kits.

In another development, a lawmaker recommended that the Philippine Health Insurance Corp. (PhilHealth) impose a ceiling on the cost of testing for COVID-19 instead of the current predetermined case rates.

Marikina Rep. Stella Luz A. Quimbo, speaking during a hearing of the House Defeat COVID-19 committee, said “if the case rate is set too high, katulad sa ngayon (like now), the excess goes to the hospital or the laboratory.”

Citing an example, she explained that if the testing cost is P3,000 and the PhilHealth case rate is P8,000, the P5,000 balance goes to the “hospital as profits.”

“It’s not right, especially now na kulang tayo sa (that we have limited) resources,” she said.

Ms. Quimbo added that PhilHealth should update the ceiling regularly in line with prevailing price adjustments.

PhilHealth Medical Specialist Marvin C. Galvez said they will look into the lawmaker’s proposal.

“We will consider po the proposal. To be clear, the proposal is to apply the payment mechanism ‘fee-for-service’ for testing COVID-19? We will look into it,” he said.

Based on PhilHealth’s 2020-0010 circular, the packages for COVID-19 testing are as follows: P8,150 if all services for the testing are provided by the testing laboratory; P5,450 if test kits are donated to the laboratory; and P2,710 if test kits are donated to the laboratory and the cost of running the facility is included in the facility’s budget. — Vann Marlo M. Villegas, Gillian M. Cortez, and Genshen L. Espedido

Digitized system for international passengers to be launched

THE Bureau of Immigration is developing a digitized system for international passenger information to improve the monitoring system and avoid physical contact amid the coronavirus disease 2019 (COVID-19) threat.

In a statement, Commissioner Jaime H. Morente said they will launch “as soon as possible” an advanced passenger processing and information system that will use digitized arrival cards and boarding passes.

Mr. Morente said these new protocols will facilitate contact tracing if needed, aside from observing social distancing between officers and passengers.

The commissioner said they are discussing the mechanics and procedures for the implementation of the digitized system with different airlines, which is already being used in many developed countries.

Griton SP. Medina, Port Operations Division chief, said Philippine-bound passengers will have to fill out at their port of origin the digitized arrival card prior to their departure.

He added that they will urge airlines to use QR or bar codes in passenger’s phones or devices as boarding passes.

“This will create a fully paperless transaction during immigration assessment, reduce the risk of transmission, and allow for more efficient monitoring,” he said. — Vann Marlo M. Villegas

Duterte says prison term awaits local officials involved in cash aid anomalies

PRESIDENT Rodrigo R. Duterte said he will make sure that local officials found to be involved in anomalies on the distribution of emergency cash aid will face jail time.

“I will see to it that you go to prison,” he said in a taped talk late Tuesday night.

The national government’s cash aid under the social amelioration program (SAP), intended for poor families affected by the lockdown due to the coronavirus disease 2019 (COVID-19), are distributed through local government units.

Interior Secretary Eduardo A. Año said they are questioning 48 mayors who have less than 80% accomplishment of SAP distribution in their areas.

There are also 183 barangay officials being investigated for alleged corruption involving the SAP funds. Several officials have already been arrested. — Gillian M. Cortez

House to resume hearings on ABS-CBN franchise next week

THE House committee on legislative franchises will convene next week to tackle proposals seeking a 25-year franchise for ABS-CBN Corp., House Speaker Alan Peter S.Cayetano said on Tuesday.

Mr. Cayetano, in an interview over radio DzMM, said the decision on the franchise renewal may be ready after President Rodrigo R. Duterte’s State of the Nation Address (SONA) in July.

“I foresee that the hearings would not go beyond July, and by August, after President Duterte’s SONA, we should be ready to decide,” he said.

He added that deliberations will continue during Congress’ recess starting June 5.

Congress will be on a nearly two-month break before it reopens for the second regular session on July 27.

“The deliberations by the committee on legislative franchises will continue during our recess. They will not stop until they are finished so that no one can say we’re stopping the process or dragging our feet,” he said, adding that the committee will likely hold two to three hearings a week.

He pointed out that the committee would look into “no more than 10 issues” in relation to ABS-CBN’s proposed new franchise, including the network’s alleged violations of tax and labor laws, breaches of the terms and conditions of its previous broadcast privilege, and ownership issues.

ABS-CBN went off-air on May 5 following the issuance of a cease and desist order by the National Telecommunications Commission (NTC). The network’s franchise expired on May 4.

PROVISIONAL FRANCHISE
Meanwhile, a Senate leader said on Wednesday that the House of Representatives should have pushed for the passage of ABS-CBN’s provisional franchise to prevent retrenchment of the network’s employees.

Before scheduling the 25-year franchise hearings, House Bill No. 6732 containing a provisional license for the broadcast firm was already passed last week on initial reading.

“Kaya sa aking tingin, wala pong prangkisa na maaprubahan bago mag-June 3. Kaya dapat itinuloy na nila ‘yung 5 buwang provisional franchise (The way I see it, there will be no franchise approved by June 3. The five-month provisional franchise should have been pursued),” Senate Minority Leader Franklin M. Drilon said in a separate interview over the same radio station on Wednesday.

“Nobody will get harmed (if we give a) provisional franchise (to) ABS-CBN… Ang masasagasaan ‘yung (Those who will be thrown under the bus are) 11,000 employees ng ABS-CBN,” he said.

The Senate on Tuesday morning held a preliminary hearing in anticipation of HB 6732, in time for its planned approval before the June 3 adjournment.

ABS-CBN President and Chief Executive Officer Carlo L. Katigbak had said the network may consider beginning the retrenchment process in August due to the losses it incurs since its shutdown. — Genshen L. Espedido and Charmaine A. Tadalan

Typhoon leaves P170-M damage in power infra

RURAL power utilities suffered an estimated P170.22 million in infrastructure damage from typhoon Ambo, the National Electrification Administration (NEA) reported on Wednesday.

NEA, the agency tasked to power the countryside, said the typhoon that swept through the country last week affected 18 electric cooperatives operating in the provinces of Quezon, Marinduque, Sorsogon, Masbate, Western Samar, Eastern Samar, and Northern Samar.

The Northern Samar Electric Cooperative, Inc. (NORSAMELCO) suffered the most with estimated damage at P72.94 million.

According to NEA’s Disaster Risk Reduction and Management Department, 11 of the 18 rural utilities have already returned to normal operations as of Tuesday.

A task force composed of 67 linemen from participating cooperatives are carrying out restoration works in two badly hit utilities in Northern Samar and Eastern Samar. — Adam J. Ang

F1 could manage to race even with COVID-19 cases, says FIA

LONDON — Formula One could cope with up to 10 positive tests for COVID-19 when the sport starts the season in July, according to the chairman of the governing Fédération Internationale de I’ Automobile’s medical commission.

Professor Gerard Saillant told Sky Sports television the sport would still need a “red line,” however, beyond which racing could not continue.

The planned March 15 season-opener in Australia was cancelled after a McLaren team employee tested positive.

“I think the situation is quite different between Melbourne and Austria now,” said Saillant. “The knowledge of the virus is quite different. It is possible to prevent and to anticipate a lot of things.

“If we have one positive case, or maybe even 10, it is possible to manage perfectly with a special pathway for the positive case.”

Saillant recognized the sporting and media reaction might be harder to deal with.

“We have to try to anticipate that, to know where the red line is beyond which it is impossible to continue. But I think it is not a problem for us now,” he said.

Formula One is planning to hold two races behind closed doors in Austria in early July, with teams flown in on charter flights, tested regularly and isolated from the local population.

The teams would also be kept separate from each other and staff kept to a minimum, with no sponsors or guests allowed to attend.

The teams had already gathered in Australia when that race was called off before first practice at Albert Park.

FIA president Jean Todt said it would be unfair to attach any blame for what happened but lessons would be learned.

“We want to make sure that arriving to the first event on the 2020 calendar, we don’t face another unpredictable situation and we have experts working on that,” said the Frenchman. — Reuters

BRAVE CF to expand to professional boxing

AFTER steadily carving a name for itself in mixed martial arts, Bahrain-based BRAVE Combat Federation is girding to add to its offering professional boxing.

Veteran of 34 live events that were held in more than a dozen different countries since opening shop in September 2016, BRAVE is looking to have pro boxing in its portfolio of offerings in line with its goal of further enhancing the standing of combat sports in the world, apart from shoring up its own brand.

“The vision of His Highness Shaikh Khaled bin Hamad Al Khalifa (founder) is to develop combat sports internationally. Now we are combining the two biggest combat sports in the world,” said BRAVE CF president Mohammed Shahid in announcing their pro boxing plans.

“BRAVE CF’s aim is to globalize them and lift everyone involved with it, fighters, managers, fans, journalists, and promoters. That laser-focused vision we’ve had to take mixed martial arts to new heights can be expected with BRAVE CF in boxing,” he added.

The promotion said more details on its plans to go into boxing would follow in the coming days.

BRAVE has hosted shows in established markets for combat sports such as Brazil and England, while also giving the first taste of international MMA action to the continent of Africa, as well as countries such as India, Pakistan, Kazakhstan, Saudi Arabia, and Colombia.

The Philippines is well represented in the organization, with Filipino MMA bantamweight fighter Stephen “The Sniper” Loman the reigning champion in his division. His Team Lakay teammate Jeremy “The Juggernaut” Pacatiw, meanwhile, has the most bouts in BRAVE with 10. — Michael Angelo S. Murillo

ASICS shows support for St. Luke’s Hospital frontliners

IN A TOUGH BATTLE such as against the coronavirus disease 2019 (COVID-19) pandemic, help of any form goes a long way. For footwear and sports equipment maker ASICS, one way it is throwing support is by rallying behind medical frontliners as they lead the charge against the highly contagious respiratory disease.

Recently, to jumpstart Healthcare Week, Kobe, Japan-headquartered ASICS partnered with St. Luke’s Medical Center at Bonifacio Global City in showing appreciation for the work being done by emergency room staff and doctors by providing them with CARE shoes.

Lightweight sneakers with neutral cushioning, ASICS hopes that the CARE shoes would provide the comfort needed for medical frontliners during the long hours they spent in helping in the battle against COVID-19, which is still a growing concern for the country, with reported confirmed cases, as of this writing, numbering at 12,942.

And such gesture of help did not go unnoticed and unappreciated as the health workers who got their pairs of shoes were all smiles and were thankful.

ASICS, which operates in Japan, the Americas, Europe, and Oceania, as well as South, East, and Southeast Asia, said its efforts would continue for other hospitals as well to ensure that frontliners would be taken care of and given the support they deserve.

For additional details on the ASICS efforts and its products, visit https://www.instagram.com/p/CAPW43LnsfM/?utm_source=ig_web_copy_link. — Michael Angelo S. Murillo

Supreme Court of the Philippines unveils virtual courtrooms during COVID-19 community quarantine

Amidst the quarantine impositions by the Philippine Government, the Supreme Court (SC) has partnered with Microsoft to improve the efficiency and productivity of the country’s legal proceedings though videoconferencing hearings. The conduct of videoconferencing hearing sensure cases are heard in a timely manner, during the pandemic, and comply with the government’s social distancing and remote work guidelines.

The initial implementation of the Enhanced Community Quarantine (ECQ) and General Community Quarantine (GCQ) measures brought challenges to legal proceedings in the Philippines.Furthermore, reported infections of Persons Deprived of Liberty (PDLs) with COVID-19 in the different detention facilities restrained the movement and travel of PDLs, judges and court personnel.

As a result, the Supreme Court— under the guidance of Chief Justice Diosdado M. Peralta and Court Administrator Jose Midas P. Marquez—teamed up with Microsoft to enable videoconferencing hearings using Microsoft 365, a unified communication and collaboration platform with innovative Office web applications, intelligent cloud services, and world-class security.

On April 27, 2020, Chief Justice Peralta issued Administrative Circular 37-2020, directing all Litigants, Judges and Court personnel of 925 First and Second Level Courts nationwide to immediately begin virtual court hearings.

In the first nine days of piloting videoconferencing hearings, 4,683 PDLs were released, a 125% increase in daily releases compared to 9,731 from six weeks prior to implementation of Microsoft 365. Videoconferencing hearings are being done in Metro Manila and select courts in key cities nationwide. Aside from video conferencing hearings, the high court also allowed the e-filing of complaints, petitions for bail as well as the submission of requirements for bail to minimize physical contact.

“We thank Microsoft for extending Microsoft 365 to us, and commend them for supporting the Philippine Judiciary in our quest for digital transformation, with the aim of realizing expedited, efficient, and secure trials that are more user-friendly for court users especially during this time of public health emergency,” said the Honorable Chief Justice Diosdado M. Peralta

In addition, Microsoft 365 will be the official medium for communications by the entire Judicial Branch of the Philippine Government. On May 12, 2020, the Supreme court utilized Microsoft’s Stream platformto conducta webinar titled ‘The New Normal: Cybersecurity in a COVID-Free, Malware-Free Judiciary.’

People without passes to be barred from malls

POLICE yesterday asked malls to bar people without a quarantine pass to prevent overcrowding amid a novel coronavirus pandemic.

Lieutenant General Guillermo Lorenzo Eleazar, deputy chief for operations of the Philippine National Police, made the recommendation during a meeting with mall security managers at Camp Crame in Quezon City yesterday.

Allowing only customers with quarantine passes would ensure physical distancing and other safety protocols to prevent the spread of the virus, Mr. Eleazar told reporters.

Security guards must also inspect vehicles about to enter the malls’ parking areas and check whether the drivers and passengers have quarantine passes.

Local governments issue only one quarantine pass per household.

Mr. Eleazar said COVID-19 cases could surge if physical distancing and other measures are ignored.

“Let us not make the malls the ground zero of the new wave of coronavirus infection,” he said.

The government on Monday threatened to close malls under a new lockdown for failing to enforce physical distancing measures.

The state could reimpose the lockdown it had relaxed this month if people continue to ignore the rules, presidential spokesman Harry L. Roque said.

The warning came after photos circulated online showing people crowding at major malls. Photos also showed people working out in gyms and eating at restaurants.

SM, Robinsons and other malls were allowed to reopen at the weekend under relaxed lockdown rules as the government tries to revive an economy that the virus brought to a near standstill.

But the government barred mall operators from offering free WiFi and ordered them to use warmer air-conditioning settings to discourage overcrowding. — Emmanuel Tupas, Philippine Star

April taxes plummet amid crisis

GOVERNMENT tax collection continued to plunge in April, largely because of the extension of tax payment deadlines amid lockdown measures, the Department of Finance (DoF) said on Tuesday.

However, Finance Secretary Carlos G. Dominguez III said there are no plans for new taxes to fund the fight against the coronavirus disease 2019 (COVID-19) pandemic.

The DoF, citing preliminary data, said combined collections of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) dropped to P105.75 billion last month, 63% lower than a year earlier and 19% short of the P131-billion target for the month.

The bulk or P71.78 billion came from BIR collections, which declined by 70% from P237.93 billion a year ago.

BoC generated P33.97 billion in revenues in April, 34.27% lower than in the same period last year and 40% short of the P56.54-billion target for the month.

For the first four months of 2020, total collections stood at P706.85 billion, 21.46% smaller than a year ago and 3.83% short of the P735.03-billion target.

“That is because we postponed the April 15 tax (deadline)… That tax will be intact because that was earned last year,” Mr. Dominguez told a Senate hearing.

The deadline for income tax payment has been moved four times following the extension of the lockdown in Luzon. The deadline is now set at June 14, from the original schedule of April 15.

VAT and excise tax collections are also expected to decline as business activity was halted during the enhanced community quarantine that started in mid-March.

“What we really lost actually is the VAT (value-added tax) collections, the excise tax collections between mid-March until probably the end of May. That is the big loss,” Mr. Dominguez said.

The Development Budget Coordination Committee (DBCC) slashed its projected revenue collection for 2020 to P2.61 trillion — equivalent to 13.6% of the gross domestic product (GDP). This is 18% lower than the March 27 projection of P3.17 trillion, or 16.2% of GDP.

“We have no new sources of revenue at this point in time, as we are following the suggestion of Senate President (Vicente C. Sotto III), that we will not propose any new taxes,” Mr. Dominguez said.

While the sale of government assets was recommended, it is not the right time because asset price is “quite low,” Mr. Dominguez said.

“If we can sustain our momentum by borrowing money, we should do that,” he said.

INFRASTRUCTURE SPENDING SLASHED
The DBCC also cut its 2020 projected infrastructure spending to P725.1 billion, equivalent to 3.8% of GDP. This is lower than the initial projection of P800.6 billion, or 4.1% of GDP.

The Senate convened the Committee of the Whole to discuss measures and the impact of the pandemic with government agencies such as the Department of Health and the Department of Finance.

To restart the economy, Mr. Dominguez said he recommended accelerating the “Build, Build, Build” program.

“The economic team is working on the recovery program that would help us jumpstart economic activity and provide industries the assistance they need to get back on their feet,” he said.

He also pushed for the three-phased recovery plan Bayanihan II and the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), or the revised Corporate Income Tax and Incentives Rationalization Act.

The proposed CREATE will immediately cut the corporate income tax to 25% in July from 30%.

“This will be one of the largest economic stimulus measures in the country’s history,” he said. “This also sends a strong signal to the world that the Philippines is positioning itself as a premiere investment destination for companies looking to diversify their supply chain.” — Charmaine A. Tadalan and Beatrice M. Laforga

Digital service tax could generate P29B in revenues

IMPOSING taxes on digital services may raise about P29 billion in annual revenues for the government, a congressman said on Tuesday.

House Ways and Means Committee Chairperson Albay Rep. Jose Maria Clemente S. Salceda filed House Bill No. 6765 or the “Digital Economy Taxation Act,” which seeks to impose a 12% value-added tax (VAT) on digital advertisements, internet-based subscriptions and transactions made on electronic commerce (e-commerce) platforms.

“No new taxes here, we just want them to pay their fair share. Assuming you’re a company that sets up in the Philippines, and you do video-streaming or music-streaming services, you will definitely pay taxes. But companies like Netflix and Spotify don’t. That’s obviously not fair,” Mr. Salceda said in a statement on Tuesday.

“When you’re a network in the Philippines, advertising services paid to you will be subject to VAT (value-added tax). But Google and Facebook are not subject to VAT for advertising. Ang laki po ng kinikita nila sa mga Pilipino, pero ni isang kusing ng VAT, wala (They earn so much from the Filipino people, but they don’t pay a centavo of VAT), ” he added.

Finance Secretary Carlos G. Dominguez III said taxing the digital economy is “something to seriously consider” to plug leakages.

“It’s to be able to collect VAT,” Mr. Dominguez told reporters via Viber on Tuesday.

Bureau of Internal Revenue (BIR) Deputy Commissioner for Operations Arnel S.D. Guballa said it is “about time” for the Philippines to capture these tax leakages on digital transactions.

“Every sale of goods or services are taxable, whether manual or digital. On digital transactions, [it’s] about time to be high-tech to capture [leakages],” Mr. Guballa said in a text message.

Mr. Salceda’s bill will make “network orchestrators like Grab Philippines, Angkas, and other similar services that link customers and providers as withholding agents for income taxes,” in order to boost tax compliance. Also included are “network orchestrators” for leasing services such as Airbnb and e-commerce platforms such as Lazada and Shopee.

Under the bill, VAT will be imposed on all services “rendered electronically,” which includes digital advertising on Google and Facebook and subscription services such as Spotify and Netflix.

“This will, once and for all, set a statutory clarification of a long-standing question of whether services rendered electronically can be subjected to VAT,” Mr. Salceda said in the bill’s explanatory note.

The measure will also require digital service providers to establish a resident agent or representative office in the Philippines.

“This addresses the issue of businesses having a significant presence in a country without having a physical establishment here that could be held liable for tax and regulatory purposes, improving our revenue intake while being better able to protect consumers from unfair trade practices,” Mr. Salceda said.

Using “conservative” figures, Mr. Salceda estimated the measure will generate P29.1 billion in annual revenues for the government. About P9.7 billion will come from e-commerce platforms that will serve as withholding agents for VAT.

VAT on digital advertising is expected to generate P4 billion, while other digital services such as games will generate P2.9 billion. VAT on subscription-based services such as music streaming and video streaming services will yield about P2.2 billion.

Corporate income tax on digital service providers is also expected to raise P5.7 billion.

“The bill responds to the increased urgency of finding new sources of revenue to fund the country’s efforts to recover from the adverse impact of COVID-19, and anticipates the increasing digitization of the country’s economy,” Mr. Salceda said.

Earlier this month, the Finance department submitted a draft proposal on a “digital economy VAT” to lawmakers, which it said would generate P15 billion in revenues in 2021, P16.6 billion in 2022 and P18.4 billion in 2023. — Genshen L. Espedido and Beatrice M. Laforga

DTI studies import duty

THE Department of Trade and Industry (DTI) is studying tariff measures on imported products to boost state coffers.

“We are considering, maybe, but that’s still being studied right now. If at all, it would be a minimal tariff just to raise funds,” Trade Secretary Ramon M. Lopez said in a television interview on Tuesday.

“It’s not for protectionism. It is simply to raise some revenues for the government.”

In a mobile phone message sent to reporters, Mr. Lopez said he had asked his team to survey costs among suppliers abroad and local manufacturers. In principle, he said all products being studied for this measure will be solely for revenue generation. He did not identify the goods being considered.

He said in the ABS-CBN News Channel interview that locally produced products will continue to be prioritized for the government’s massive infrastructure program “Build, Build, Build.”

“It will become some kind of a guideline that will enjoin the contractors, those who won the contract dun sa (at the) Build, Build, Build, to prioritize ’yung (the) locally made products or inputs. This is really to stimulate demand.”

“Minsan, you don’t have to give a subsidy or government in-cash support, kailangan lang give them the demand, the market for their products, and buhay na sila. Lalakas na ulit ’yung negosyo and local employment (Sometimes you don’t have to give subsidies or cash support from the government, you just give them demand, the market for their products, and they will survive. Their business and local employment will be strong),” he added.

President Rodrigo R. Duterte on May 2 temporarily raised tariffs on imported crude oil and refined petroleum products to raise revenues for coronavirus disease 2019 (COVID-19) relief measures.

The Energy department estimated the government could raise up to P6.78 billion in revenues from the increased import duty this year.

The Trade department had considered safeguard duties on imported cars to protect local assemblers after Honda Cars Philippines, Inc. shut down its Laguna facility in March. — Jenina P. Ibañez

Remittances likely to contract by 7% this year

REMITTANCES may shrink by 7% this year, says Nomura Global Markets Research.

“We think the outlook for remittances is grim and the contraction could deepen ahead. We forecast 2020 remittances growth dropping to -7%,” it said in a note sent to reporters on Tuesday.

While remittances are usually resilient amid global downturns, Nomura Global said “this time is different given the confluence of factors” amid the coronavirus crisis.

Nomura Global noted that overseas Filipino workers (OFWs) from different sectors and countries are now being affected by the pandemic.

“First, sea-based remittances (22% of the total) will take a big hit particularly from the cruise ship sector,” according to the report.

Bangko Sentral Pilipinas (BSP)data showed that cash remittances from sea-based OFWs reached $6.539 billion out of the $30.133 billion total remittances in 2019.

“Second, just like during the SARS epidemic in 2003, deployment to key host countries should slow, and arguably the situation today is much larger in scale.

Another factor affecting remittances is the decline in oil prices, which has hurt Middle East countries.

Cash remittances from countries in the Middle East dropped by 9.7% to $5.972 billion in 2019, from $6.617 billion in 2018.

Previously, Nomura Global said the Philippines was likely to suffer the most during the crisis among other remittance markets. It noted that remittance inflows accounted for 9.9% of the country’s GDP in 2019.

Data from the central bank showed cash remittances of overseas Filipinos coursed through banks stood at $2.358 billion in February, up 2.5% from $2.301 billion a year ago. However, the annual growth rate in February was much slower than the 6.6% year-on-year expansion in January.

“The BSP staff projects that the OFW remittances would shrink by 0.2 to 0.8% from the original 3% growth forecast, hence the revised forecast is a range of 2.2 to 2.8% or a midpoint of 2.5%,” BSP Governor Benjamin E. Diokno said on Friday. “To be on the conservative side, BSP adopted an amended forecast of 2%, which is less than 2.5%.” — Luz Wendy T. Noble

Meralco says billings complied with rules

By Adam J. Ang

PRESSED with mounting complaints about the apparent surge in its present electricity charges, Manila Electric Co. (Meralco) said it has “strictly” followed government regulations on computing its customers’ bills.

Senator Sherwin T. Gatchalian on Monday reminded the distribution utility giant of its mandate to follow the advisories sent out by the Energy Regulatory Commission (ERC) for the computation of customers’ electricity bills incurred during the enhanced community quarantine (ECQ) from March to May, as well as the prescribed due dates.

Responding to this, Meralco Vice President and Utility Economics Head Lawrence S. Fernandez said: “Meralco strictly complied with ERC Advisories and relevant regulations.”

Sen. Gatchalian said the complaints arose from Meralco’s “confusing” electricity bill. “Meralco has failed to provide Filipinos a clearer and justified explanation on why bills have gone up so high,” he added.

But Meralco already issued its explanation on customers’ bill shock last week, saying that the May bill is the result of the actual electricity consumption in kilowatt-hours (kWh) from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

“This total, which is already based on the true and actual readings, is what customers actually see in the May bill. That is why you may notice a rise in the total amount due,” the company said.

The ERC has ordered power utilities to provide a staggered payment scheme to their customers for paying their deferred bills since March. These can be paid in four installments in the next four billing months after the ECQ, along with the payment of their current bills.

The commission on May 5 also ordered the distribution utilities and electric cooperatives to further extend the grace period that they earlier provided to consumers in areas under ECQ.

Should there be an overestimation in a customer’s bill for this month, the customer can choose which billing month it would want the overpaid amount to be later credited, Meralco Senior Vice President and Legal Head William S. Pamintuan said.

“Any overpayment made by a customer will be immediately refunded or credited to his succeeding months consumption at the customer’s option,” he said in a Viber message.

“Our bill also clearly provided that customers can pay their March and April rendered bills during the ECQ in 4 monthly installments as provided in the ERC Advisories,” he added.

On top of bills complaints, Meralco has also received the Department of Energy’s (DoE) letter asking the company to explain the additional P47 fee that customers have to pay while settling their dues through its own mobile app.

“Meralco is supposed to obtain authority from the government to do something like this. Apparently, your offices are justifying that you do not need to go through the Government because this fee collection does not go to Meralco — that it goes to your app service provider,” the letter dated May 14 read.

The DoE said the transaction fee raises the electricity cost for consumers, “a clear deviation to all the government efforts to bring down the cost of utilities, especially during these difficult times.”

But Mr. Pamintuan said the online fees are charged by online payment services provider to those using their platforms to pay their bills and are not remitted to the company.

“These online fees are not Meralco’s fees but are the fees charged by online payment services provider to those using their platform or system to transact online payments for their convenience,” he said.

Meralco has yet to submit its reply to the DoE, Mr. Fernandez said.

The ERC on Monday ordered the distribution utility to explain its basis of its determination of the kilowatt-hour consumption of its customers during the ECQ.

Moreover, it is also seeking the company’s power bills from suppliers which were reflected in its computation of generation rate, as well as its invoices from the National Grid Corporation of the Philippines (NGCP) for the computation of its transmission rate and its uniform reportorial requirement for the billing periods.

This coming Friday, the complaints on alleged increases in Meralco electricity bills will also be the subject of the Joint Congressional Energy Commission hearing on the impact of the coronavirus disease 2019 (COVID-19) pandemic in the Philippine power sector.

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.

House bloc seeks probe of electricity bills

A RESOLUTION calling for an investigation on the sudden spike in Manila Electric Co. (Meralco) electricity charges has been filed in the House of Representatives.

“Several media reports quoted electric consumers complaining about their Meralco bills that have tripled, for some, even quadrupled, despite their present low consumption, as well as in previous months,” the Makabayan bloc said in House Resolution 879 filed on Monday.

“Such high and unconscionable electric bills, only added more anxiety to many, especially now when most people are in dire straits to survive the harsh effects of the crisis brought about by the COVID-19 pandemic,” it added.

The resolution cited a P0.105 per kilowatt-hour (kWh) increase to P8.995 from P8.890 for the month of April, equivalent to a P21 increase in the total bill of “typical” residential consumers who consume an average of 200 kWh.

“The recent Meralco justification that the surge in electricity bills of consumers is a result of higher consumption, is questionable especially since President [Rodrigo R.] Duterte reported a downward trend in demand during the lockdown period,” Bayan Muna Party-List Rep. Carlos Isagani T. Zarate said in a statement on Monday.

Mr. Zarate cited the President’s report to Congress on May 11, saying that “major island grids exhibited excess capacity over peak demand with Luzon at 23% [2,683 MW (megawatts)], Visayas 28% [718 MW] and Mindanao at 30%.”

“So how can consumption increase when the demand is going down as we enter the summer period?” Mr. Zarate asked.

The Energy Regulatory Commission (ERC) on Monday ordered Meralco to explain its calculation for its past customers’ monthly billings from March to May.

In a statement last week, Meralco addressed customers’ bill shock, saying that the May bill is the result of the actual electricity consumption in kWh from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

The apparent spike in electricity rates was due to various factors, including the increase in power consumption during the lockdown and the high May temperature, which led to higher use of cooling appliances at home, Meralco said. — Genshen L. Espedido

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