Despite El Niño, no red, yellow warnings–DOE By Lenie Lectura
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WORLD | A7
9 ISRAELI SOLDIERS KILLED IN GAZA CITY AMBUSH IN SIGN THAT HAMAS RESISTANCE IS STILL STRONG
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HE Department of Energy (DOE) declared on Thursday there will be no red or yellow alert warnings on the country’s power supply next year even if the projected capacity of all hydro plants will be slashed by 79 percent during the El Niño phenomenon. The total dependable capacity of all hydro plants stood at 3,472 megawatts (MW). For 2024, the projected available capacity will shrink to 725.5 MW. This assump-
tion already included the hydro power plant maintenance schedules submitted to the National Grid Corporation of the Philippines (NGCP). For Luzon alone, the capacity of hydro plants is expected to be derated by 76 percent from the total dependable capacity of 2,416MW to the projected available capacity of 585MW. In Mindanao, it is even worse because the projected available capacity of hydro plants could go down to 115.5 percent from 1,031MW. “We have been monitoring hydro power plants this 2023 because of
the preparation for El Niño and we have assumed 70 percent of deration of hydro power plants, particularly the large ones in Luzon and Mindanao, because in Visayas we don’t have very big hydro power plants, said DOE-Electric Power Industry Management Bureau (EPIMB) Director Irma Exconde in a news briefing. “Basically, as the secretary mentioned, hydro power plants right now are in normal operation except those under maintenance and rehabilitation. But still, what we are saying even with this assumptions,
we’re still looking at without potential red or yellow alert because of the power plants coming in 2024,” she added. A red alert is raised by the National Grid Corporation of the Philippines (NGCP) when the operating margin is insufficient to meet the transmission grid’s regulating reserve and contingency requirement. A red alert is issued when the supply-to-demand balance further worsens, which can lead to rotating power interruptions. See “El Niño,” A2
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BSP KEEPS KEY RATES
TOUGH SIDE OF THE HOLIDAYS: As if navigating through the typical Christmas rush traffic wasn't challenging already, the holiday season took a more difficult turn for commuters stuck in stranded situations at Philcoa, Commonwealth Avenue, Quezon City, on Thursday, December 14, 2023. Land transport coalition Piston (Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide) spearheaded a transport strike in protest against the government's December 31 deadline for franchise consolidation and the eventual phase-out of traditional jeepneys. Earlier this week, President Ferdinand Marcos Jr. emphatically stated that the deadline for public utility vehicle operator consolidation would not be extended, underscoring the pressing need for timely modernization in the nation's transportation system. NONOY LACZA By Cai U. Ordinario
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ESPITE upside risks to the inflation outlook, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) decided to maintain key policy rates during its last meeting for the year. In a briefing on Thursday, BSP Governor Eli M. Remolona Jr. said the Monetary Board decided to keep the BSP’s Target Reverse Repurchase (RRP) Rate unchanged at 6.5 percent. With this, the interest rates on the overnight deposit and lending facilities will remain at 6 percent and 7 percent, respectively. “The country’s medium-term growth prospects remain firm, with strong demand expected in the fourth quarter due to sustained consumer spending and improved labor market conditions,” Remolona said. “The BSP will also continue to monitor how firms and households are responding to tighter monetary policy conditions alongside evolving domestic and external economic conditions,” he added. With the latest decision of the Monetary Board, the country's key policy rates increased by a total of 100 basis points this year. The Monetary Board raised key policy rates in January 2023 by 50
basis points, bringing the key policy rate to 6 percent. This was followed by a 25-basis-point increase in March 2023, bringing the rates to 6.25 percent and another 25 basis point increase in an off-cycle meeting in October, bringing key policy rates to 6.5 percent. The BSP said its overall outlook for inflation remained unchanged. For 2023, the risk-adjusted inflation was maintained at 6 percent. For 2024, BSP said the riskadjusted forecast declined to 4.2 percent from 4.4 percent in the previous meeting in November, while the risk-adjusted inflation forecast is unchanged at 3.4 percent for 2025. “With the sum of recent information, the Monetary Board continues to see the need to keep monetary policy settings sufficiently tight to allow inflation expectations to settle more firmly within the target range,” BSP said.
LOWER TARIFFS ON KEY FOOD ITEMS EXTENDED TILL END-‘24
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HE President Marcos Jr.-led National Economic and Development Authority (Neda) Board on Thursday approved the extension of reduced tariff rates on key commodities until the end of 2024 to keep local food prices stable amid the volatile supply situation. In a press briefing, Socioeconomic Planning Secretary A rsenio M. Balisacan disclosed that the Neda Board at its Thursday meeting greenlit the extension of reduced tariffs rates on pork, rice, and corn under Executive Order (EO) 10. Balisacan explained that the primary considerations of the Neda Board in extending the lower tariff rates were the insufficient domestic production coupled by world food prices that continue to remain elevated. “The review of the CTRM (Committee on Tariff and Related Matters) [showed] that there are continuing challenges in the global markets and there are remaining supply issues. In the case of swine, for example, I mentioned the continuing spread of ASF [African swine fever],” he said.
“With respect to corn and rice, we still see shortages, meaning demand [exceeds] production. The shortage would have to be sourced from imports but world prices continue to be elevated. To reduce the impact of high prices coming from imported products, we have to extend the validity of the reduced tariffs,” he added. With the approval, the tariff rates on the following commodities will remain until end-2024: 15 percent and 25 percent for in-quota and out-quota pork imports, respectively; 5 percent and 15 percent for in-quota and out-quota corn imports; and a 35-percent uniform rate for rice imports. The extended tariff rates will be formalized through the issuance of an EO by the President. In his capacity as chief executive, Marcos can exercise his power to modify tariff rates when the Congress is not in session. Marcos can issue the EO as early as December 16 to extend the reduced tariff rates. He has until January 21 to do so.
PHL gets seat in ‘loss and damage fund board’ By Patrick V. Miguel
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HE Philippines has secured a seat in the inaugural Loss and Damage Fund Board at the 28th United Nations Climate Change Conference (COP28) in Dubai, said President Ferdinand R. Marcos Jr. According to Marcos, the coun-
try “now [has] a voice in the management of all funding” available around the world to reduce and adapt to the effects of climate change. “I am very gratified to hear the news that the Philippines has secured a membership on Loss and See “PHL,” A2
See “Lower’,” A2
See “Amid,” A2
PESO exchange rates n US 55.8590 n japan 0.3910 n UK 70.4885 n HK 7.1516 n CHINA 7.7907 n singapore 41.9048 n australia 37.1909 n EU 60.7578 n KOREA 0.0424 n SAUDI arabia 14.8922 Source: BSP (December 14, 2023)