The US' public debt should touch $40 trillion next week, already $39.9 trillion last Thursday.
The quagmire that Trump has entered in the Middle East will tie up more US military and public spending for months to come.
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See also:
Sunday, August 16, 2026
Fiscal Irresponsibility 42, US debt and budget deficit
BWorld 877, On inflation, an ERC resolution, and CBK
On inflation, an ERC resolution, and CBK
June 23, 2026 | 12:02 am
My Cup Of Liberty
By Bienvenido S. Oplas, Jr.
https://bworldonline.com/opinion/2026/06/23/758319/on-inflation-an-erc-resolution-and-cbk/
There is good news this week: gasoline prices are set to decline by P3.90 to P5.90 per liter, with diesel prices to decrease by P9.04 to P11.04 per liter, as announced by the Department of Energy (DoE) yesterday. We need energy prices to lessen some more to control the country’s rising inflation.
Our average inflation of 6% in January-May was much higher than the 3.8% and 1.9% over the same months in 2024 and 2025, respectively. In East and South Asia, only Pakistan and Bangladesh have had higher inflation than the Philippines.
Central Banks or monetary authorities respond normally to rising inflation by raising their interest rates to help protect the domestic currency from further depreciation and to help dampen inflation pressure. Our 4.75% is the 5th highest in the region, after Pakistan, Bangladesh, India, and Indonesia (see Table 1).
There have also been some important developments in the local energy sector.
The DoE announced with some optimism last week that power conditions in the Visayas Grid are expected to significantly improve next month. In Iloilo, the Panay Energy Development Corp. (PEDC) unit 3 (which produces 150 megawatts) is set to resume operations by July 3. In Cebu, the two units of Therma Visayas, Inc. (TVI), which each produce 169 megawatts, are currently under repair, and it will soon have a third unit which is currently under construction.
NEW ERC RESOLUTION
The Energy Regulatory Commission (ERC) announced last Friday a new ERC Resolution establishing the “Implementing Rules for the Development, Ownership, and Operation of Point-to-Point Limited Transmission Facilities and for the Financing and Construction of Transmission Projects by Entities Other than the Transmission Network Provider.”
The resolution says that entities other than the National Grid Corp. of the Philippines (NGCP) will be allowed to finance and construct projects identified by the DoE as Associated Transmission Projects (ATPs) or Priority Projects that include new transmission lines, substations, switchyards, and other facilities to accommodate additional power generation capacity and strengthen the country’s transmission network. Philippineseconomic data
This is a good move by the ERC, but it should be noted that system operation, connection to the grid, rules on dispatch or non-dispatch to the grid, are still done by the NGCP.
I think a good example is the Davao City-Samal power interconnection project, with the laying of a submarine cable in the Pakiputan Strait done last March by Aboitiz Power (AP) through its distribution utility, Davao Light and Power Co. Cable terminal stations were also constructed at both shore ends. The 69-kilovolt project will bring power network stability and support the growing load requirements of Samal and brighten the economic potential of Samal’s population of 120,000 (2024 Census).
IMPLIED CAPACITY
Meanwhile, the rainy season is here, and a new storm this week will pour a lot of rain in many provinces. Hydropower plants will have more water in their reservoirs.
Given this, I decided to compute the implied capacity factor (ICF) of each energy source in the Philippines with this basic formula: ICF = (Generation in GWh) / (24 hours/day x 365 days x installed capacity in GW) x 100.
Last year had a bad La Niña, with too many cloudy and rainy days and too many storms, so hydro output and ICF were high while solar output and ICF were low, at only 15%. Oil-based power plants had the lowest ICF, only 2%, because they are used mainly as peaking plants — they run only for a few days and weeks in a year (see Table 2).
Solar energy has seen fast growth in installed capacity but low ICF, meaning this is more dangerous because of grid instability. Pumped hydro storage (PHS) plants help address this problem.
The CBK (Caliraya-Botocan-Kalayaan) plant in Laguna is the largest PHS in the country with a capacity of 797 megawatts. It was privatized by PSALM last year and the winning bidder was Thunder Consortium (Aboitiz Power, Sumitomo Corp., and Japan Power) which offered a high bid of P36.3 billion. CBK turnover to the consortium was done last February, led by President Ferdinand Marcos, Jr. and Energy Secretary Sharon Garin.
The Finance department saw not very big non-tax revenue from privatization proceeds — only P3.3 billion in 2024, P2 billion in 2025, and P0.7 billion from January to April this year. When the full P36.3 billion from CBK is reflected, the Finance department’s privatization revenues will jump high.
CBK utilization should rise this rainy season for three reasons. One, hydro works harder as many baseload coal and gas plants hold their regular maintenance shutdowns during the wet season. Two, the Malampaya gas field is also under maintenance shutdown, from June 15 to July 15. Three, there is the need to export more power to the Visayas Grid while the yellow alerts persist.
Weekend Fun 86, Cayetano siblings in the Senate
Some political memes in the Philippines Senate few months ago, enjoy.
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See also:
Weekend Fun 83, Academic lessons on Mother's day, May 14, 2023
Weekend Fun 84, More Father's day jokes, June 18, 2023
Weekend Fun 84, More Father's day jokes, June 18, 2023
Weekend Fun 85, Climate "emergency", July 09, 2023.
Energy 188, Climate and UK, Spain energy
Some old news on the subject.
1. UK energy and climate
Net zero race ‘risks blackouts and higher bills’
https://www.thetimes.com/uk/politics/article/net-zero-blackouts-bills-national-grid-z88zz3l8v
Britain’s airlines face £400m bill to hit green fuel targets
Rules requiring carriers to use virtually unobtainable renewable substance costing millions
Christopher Jasper, 22 June 2026
Air conditioning torn from homes under net zero clampdown
Climate change regulations prioritised despite soaring temperatures
Robert White, 24 June 2026
JOB FEARS Scotland’s oil & gas industry being ‘demolished’ as stark jobs warning issued
Committee members also blasted the windfall tax on oil and gas energy profits
Conor Matchett 24 Oct 2025
Economist behind Ed Miliband's promise to cut Brits' energy bills by £300 admits savings could be 'wiped out' by rising electricity costs
By GREG HEFFER, 23 October 2025
https://www.dailymail.co.uk/news/article-15219789/Economist-Ed-Milibands-promise-cut-Brits-energy-bills-300-admits-savings-wiped-rising-electricity-costs.html
BP and JERA Abandon U.S. Offshore Wind Project Amid Policy Shift
Irina Slav October 22, 2025
https://finance.yahoo.com/news/bp-jera-abandon-u-offshore-071500485.html
Green levies to blame for rising energy bills, say suppliers
UK’s biggest gas and electricity providers urge ministers to address ballooning net zero costs
Matt Oliver, Jonathan Leake 16 October 2025
https://www.telegraph.co.uk/business/2025/10/16/green-levies-are-to-blame-for-rising-energy-bills/
Energy debt hits eight-year high ahead of winter
The amount customers owe their supplier has increased by nearly 30% in the past year.
Energy debt hits eight-year high ahead of winteriStock
Danyel VanReenen, Oct 15th, 2025
https://news.stv.tv/politics/energy-debt-hits-eight-year-high-ahead-of-winter
Energy bills likely to rise by 20% in next four years, says Britain’s biggest supplier
MPs told that even if wholesale prices plummet, consumers face higher bills owing to costs of government policies
Jillian Ambrose 15 Oct 2025
Claire Coutinho: Energy is prosperity
October 6, 2025
https://www.conservatives.com/news/energy-is-prosperity
Boris Johnson: I went too far, too fast on net zero
Former prime minister believes he got ‘carried away’ by the idea of renewable energy sources
Gordon Rayner 05 October 2025
https://www.telegraph.co.uk/politics/2025/10/05/boris-johnson-too-far-too-fast-net-zero/
Investors beware: The Net Zero consensus is dead
By: Andrew Montford 03 October 2025
https://www.cityam.com/investors-beware-the-net-zero-consensus-is-dead/
‘It’s unsustainable’: homes in Great Britain brace for winter with soaring energy debts
As typical annual dual-fuel charge rises to £1,755, charities warn over record £4.4bn owed to suppliers
Britons preparing to ration energy as Ofgem price cap rises, says charity
Jillian Ambrose 1 Oct 2025
Britain paying highest electricity prices in the world as net zero costs rise
Cost of powering industry 63pc higher than France in blow to Miliband’s net zero targets
Ed Miliband, the Energy Secretary, has stressed that net zero is not to blame for soaring prices
Matt Oliver 30 September 2025
Energy bills to rise more than expected for millions of British households
Typical annual bill to increase by just over £35 to £1,755 from October when Ofgem raises government price cap by 2%
Jillian Ambrose 27 Aug 2025
https://www.theguardian.com/money/2025/aug/27/higher-energy-bills-price-cap-rises
Why Britain pays such a crippling price for electricity
Decades of energy policy failure have left businesses and households picking up the bill
Matt Oliver, Jonathan Leake. 29 June 2025
https://archive.fo/nwBIb#selection-2215.4-3351.26
Net zero blamed as Britain faces years of industrial decline
Soaring factory energy prices threaten to undermine manufacturing sector
Tim Wallace, Melissa Lawford 19 March 2025
https://archive.fo/84oAd#selection-2205.4-3351.16
2. Climate and Spain energy
Notice this -- as more solar and wind are added to Spain energy mix, total power generation declines, starting 2009.
Spain's grid operator warns of new voltage swings, urges measures to avoid blackout
By Reuters October 9, 2025
Spain at risk of fresh net zero blackouts
Sudden fluctuations in solar energy are jeopardising the country’s energy supply
Matt Oliver Candela Orobitg-Baena 09 October 2025
https://www.telegraph.co.uk/business/2025/10/09/spain-at-risk-of-fresh-net-zero-blackouts/
In the dark: Spain's electricity grid operator warns country could be heading for another blackout
By Jesús Maturana 10/10/2025
Obsolete electricity grid triggered blackout in Portugal and Spain, experts reveal
By Marta Pacheco 03/10/2025
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See also:
Energy 186, Blackout in Boracay, Siquijor, September 14, 2025
Energy 187, Continued decline in UK power generation, October 06, 2025
BWorld 876, On agriculture, fossil fuels, and modernization
On agriculture, fossil fuels, and modernization
June 16, 2026 | 12:02 am
My Cup Of Liberty
By Bienvenido S. Oplas, Jr.
https://bworldonline.com/opinion/2026/06/16/756759/on-agriculture-fossil-fuels-and-modernization/
A peace deal between the US and Iran was announced yesterday and the official signing will be on Friday, June 19.
Crude oil prices have declined: WTI oil went from $90.5/barrel on June 5, to $85 on June 12, and $80 at noon on June 15. This is good. We need more cheap energy and not more war in order to modernize our countries.
Meanwhile, the rice planting season started in many provinces this month and the farmers face higher farming costs — because of the high oil and gas prices since the US and Israel started their war against Iran on Feb. 28.
Rental for the use of a rotor tractor in a rice field in Pangasinan was P2,800/hectare until about 2023. Then it rose to P3,200 in 2024-2025. Today it costs P4,000/hectare. I learned that tractor rental for sugarcane fields in Negros is now P6,000/hectare.
Various types of fertilizers are byproducts of oil and gas refining and petrochem production. I checked the prices of local fertilizers from the Fertilizers and Pesticides Authority (FPA) of the Department of Agriculture. The price of urea granular is up, from P1,656/bag at end-2025 to P2,666 on June 5, their latest data. My farmer source in Pangasinan said it was already P3,200/bag last week.
Ammonium sulfate (Ammosul) is up from P819/bag at the end of 2025, to P1,249 on June 5 — but my farmer source said it was actually already around P1,800 last week. Ammosul is a fast-acting fertilizer that provides a quick nitrogen boost. Complete fertilizer or triple 14 was P1,941/bag on June 5 as per FPA data, my source said it was already P2,200 last week.
I have looked at the global prices of selected fertilizers or their main ingredients. Sulfur has seen the largest increase, its price has nearly tripled from its end-2025 level. Sulfuric acid is used to produce phosphate, nitrogen, and potassium fertilizers like ammosul.
Fertilizers need good packaging for transport and moisture protection. Polypropelene (PP) woven sacks are used because fertilizers are corrosive and sensitive to moisture. PP bags are durable, cost-effective, and protect the product from absorbing atmospheric moisture and during shipping and handling. PP prices have increased too (see Table 1).
Last week, on June 9, the Bangko Sentral ng Pilipinas (BSP) made public a digital book they published last March, Current Account Dynamics and the Philippine Economy: Developments and Prospects. It is 402 pages long. It analyzed, among others, the country’s sustained trade deficit (merchandise imports are larger than exports) due to our poor manufacturing capacity. They are correct.
What the BSP is lacking in its analysis is the role of abundant energy — the greater use of oil, gas, and coal to produce more stable, reliable, and competitively priced electricity, and greater availability of liquid fuel for our trucks, buses, tractors, harvesters, etc. Maybe this is because the BSP has embraced the climate crisis narrative. I checked the World Trade Organization (WTO) database and the Energy Institute’s database and found that between 2005 to 2025, countries that saw an expansion of their merchandise exports by 4.5 times or more — Vietnam, the UAE, India, and China — also expanded their energy supply by 2.2 times or more between 2005-2024.
Countries whose merchandise exports expansion was low, at most a 2.4-time expansion over two decades — Germany, the Netherlands, France, Italy, and the UK — also had declining or contracting energy supply. Germany, for example, went from 14.1 exajoules (EJ) in 2005 to only 10.1 EJ in 2024.
The Philippines suffers from energy poverty and will not be attractive to big manufacturers even if we had lower taxes and more efficient business bureaucracies (see Table 2).
Back to the Middle East war and the peace deal. The main lessons seen there are the following:
1. Negotiation, not prolonged bombing and endless war, is the key.
2. The US’ security guarantee for Middle East countries is not really working.
3. There is no substitute for oil and gas when it comes to expanding food production via more fertilizers and other agricultural inputs. Alternative power sources — solar, wind, biomass, geothermal, hydro, and nuclear — cannot produce ammonia, sulfur, phosphorous, potassium, other fertilizer ingredients, and packaging materials.
4. The Philippines and the rest of the world should again embrace hydrocarbons and fossil fuels. They should junk climate alarmism. Renewable energy is mainly for electricity production but not for food production.
PhilStar 97, Electrifying sensationalism and Akbayan sa ingay
Electrifying sensationalism and Akbayan sa ingay
ENERGY, INFRA AND ECONOMICS - Bienvenido Oplas Jr. - The Philippine Star
June 18, 2026 | 12:00am
Negros Power, Bacolod City – from P11.38 in May to P13.84 in June, an increase of P2.46.
MORE Power, Iloilo City – P11.87 in May to P13.87 in June, an increase of P2.
VECO, Cebu City – no announcement yet for June but it was P12.88 in May, likely around P2 increase in June too.
Southern Leyte EC (SOLECO) – from P12.53 in May to P16.57 in June, or P4.04 increase.
In Meralco area, from P14.33 in May to P14.48 in June, or a P0.15 increase.
The reasons for high rate increases in the Visayas grid are: one, higher Wholesale Electricity Spot Market (WESM) prices – P4.48 in April to P10.20 in May (reflected in June billing), more than double due to power supply shortage as several big power plants have extended maintenance shutdown while demand remained high. And two, higher cost from power suppliers, the cost of coal, gas and oil have increased. Solar-wind cannot produce or store electricity when the sun is not shining (evening, daytime but thick clouds or raining), or when the wind is not blowing.
Meanwhile, some developments in some Philippines energy stakeholders.
Department of Energy (DOE) sets final consultation on Semirara coal mine bid, submission of bids in two months. The contract will be for 25 years.
Energy Regulatory Commission (ERC) celebrated its 25th anniversary and posted 10-month gains in regulatory reforms. Chairperson and CEO Francis Saturnino Juan emphasized that: “Our mission is straightforward: to regulate the power industry in a way that is effective, efficient, and prioritizes the welfare of consumers.” ERC has addressed decade-long delay in the rate reset process for private distribution utilities through the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR).
National Grid Corp. of the Philippines (NGCP) announced that overall transmission rates declined from P1.60/kWh in April to P1.45/kWh in May, or a P0.15 decrease. NGCP transmission wheeling rates declined from P0.60 in April to P0.56 in May, while ancillary services (AS) rates decreased from P0.81 in April to P0.72 in May. Wheeling rates directly go to NGCP while AS rates go to AS providers (peaking plants, battery) with bilateral contracts with NGCP to stabilize the grid during power supply-demand imbalances.
Meralco PowerGen Corp. (MGEN) announced the appointment of Arnel Santos from SVP - COO to become president and CEO of MGEN Thermal Energy Inc. starting July 1, 2026.
Felino “Lino” Bernardo, who is the current president and CEO of MGEN Thermal, will do bigger tasks as head of Strategic Energy Transition, to advance the company’s long-term growth and transition agenda. He will lead the company’s strategic development and management of power generation project pipeline – from project identification, feasibility studies, execution strategies, growth initiatives across key developments such as Atimonan One Energy, expansion project in Cebu, and nuclear energy development studies.
MGEN president and CEO Manny Rubio said that the leadership transition is meant to “position us strongly for both today’s operational priorities and tomorrow’s growth opportunities, shape the future of our portfolio and the country’s energy sector.”
Akbayan sa ingay
Recently the Akbayan Party List made lots of political and legislative noise that targeted Meralco for its “high electricity bills,” “recurring bill shocks,” “families receiving electric bills that have doubled,” “questionable charges,” “impose extra charges to ordinary consumers,” etc.
The Akbayan Reform Bloc is composed of their three party-list representatives Chel Diokno, Percival Cendaña and Dadah Kiram Ismula, plus Dinagat Lone District Rep. Kaka Bag-ao. This bloc is also supported by NGOs like Small Entrepreneur for Livelihood Development Association (SELDA), Sentro ng Nagkakaisang Progresibong Manggagawa (SENTRO) and Akbayan Green Working Group.
Their legislators filed House Resolution (HR) 995 calling for an investigation into the “mounting charges in Meralco electricity bills,” House Bill 9134 seeking to remove the VAT on system loss charge and HR 875 calling for an urgent review of the Philippine Energy Plan.
Go back to the top of this paper, electricity rate increases from May to June 2026 in pesos per kwh: Meralco P0.15, MORE Power P2, VECO likely P2 too, Negros Power P2.46 and SOLECO, P4.04.
In addition, there are almost daily announcements of rotating blackouts in almost all DUs and ECs in the Visayas grid -- Cebu, Bohol, Negros Occidental and Oriental, Panay (Iloilo, Capiz, Aklan, Antique), Guimaras. They get a bad combination of higher electricity rates plus frequent power fluctuations, if not blackouts.
Why is Akbayan silent on those issues and places? Meralco rate increase of only P0.15 plus no blackout or power fluctuations. Its generation charge is high because it has redundancies in power supply contracts to avoid blackout.
The most expensive electricity is no electricity. A P15/kwh but available electricity is cheaper than P1/kwh but electricity is absent. When there is blackout, the poor use candles that can cause fires, the rich use gensets on diesel that are noisy, more expensive, more polluting.
The real reason why Akbayan and their allies single out Meralco is because Akbayan seeks to keep their three PL seats in the 2028 elections. Attack a big corporation despite its low rate increase and no blackout, to make themselves look “heroic.” Then be silent on so many other DUs and ECs with higher rate increases and frequent power disruption.
This is double talk and hypocrisy by Akbayan and their NGO allies. The voters should investigate Akbayan why they persist on high profile hypocrisy, in aid of their re-election in 2028.
BWorld 875, ‘Trumpflation’ in energy and fertilizer products
‘Trumpflation’ in energy and fertilizer products
June 11, 2026 | 12:02 am
My Cup Of Liberty
By Bienvenido S. Oplas, Jr.
https://bworldonline.com/opinion/2026/06/11/755854/trumpflation-in-energy-and-fertilizer-products/
Two reports related to Philippine commodity prices were released this week: the Philippine Statistics Authority released the inflation rate for May, and the Independent Electricity Market Operator of the Philippines (IEMOP) released the market operations highlights at the Wholesale Electricity Spot Market (WESM).
Our inflation rate of 6.8% in May was the highest in East Asia but was lower than that of South Asian economies like Pakistan and Bangladesh. The average inflation from January-May was highest in Pakistan with 10%, Bangladesh with 9.1%, and the Philippines’ 6%.
Comparing this with the average inflation from January-May 2025, Pakistan saw the largest increase, from 0.5% to 10%, followed by the Philippines, from 1.9% to 6% (see Table 1).
The Marcos Jr. administration’s subsidies and ayuda (assistance) to the public land transport and agriculture sectors so far have not succeeded in controlling transport and food inflation. I think the administration should consider suspending the diesel excise tax even if temporarily.
The reduction in diesel prices — the P6/liter excise tax plus 12% VAT or a reduction of P6.72/liter total — would be a big respite for those whose machines, like tractors, harvesters, threshers, irrigation pumps, trucks, fishing boats, buses and jeepneys, run on diesel. These savings can be translated to lower cost of farming and transporting goods and people.
The IEMOP data show a significant increase in WESM prices (not the overall power generation prices), from P5.63 per kilowatt-hour (kWh) in April to P7.79/kWh in the May billing period that will be collected this month.
I checked WESM prices in the same months in the last two years, and it turns out that it was much higher in May 2024 at P8.22/kWh than it was this year. The main explanation is the thin power margins of only 1,867 megawatts (MW) in May 2024 vs 3,629 MW in May 2026 (see Table 2).
TRUMPFLATION
Finally, an update on Trumpflation in energy and fertilizer-related products and inputs. While the prices of crude oil (WTI, Brent, Dubai, Urals/Russia, etc.) and liquefied natural gas or LNG at Japan Korea Marker (JKM) fluctuated, prices of coal and fertilizers inputs keep rising. The price of sulfur, in particular, has nearly tripled since Feb. 27 or day before the US-Israel attack on Iran (see Table 3).
The Middle East war should end soon, and the US and Israel should recognize that their political and military actions have largely contributed to high inflation in many countries — what I call the Trumpflation effect.
The Philippines should embrace again the usefulness of hydrocarbons and fossil fuels. Climate and renewables objectives should take a backseat relative to our tight economic situation. High taxes on, and the demonization of, fossil fuels, and favoritism towards intermittent renewable energy should stop.
Agri Econ 43, Palay price inflation rising
Here is the latest data on palay (unmilled rice) prices from the Philippines Statistics Authority (PSA). These are nominal, not real prices so the level of inflation is high but it shows the degree of pass-on cost by the farmers to the consumers, 24% last May to 28% in June and 36% in July.
Energy inflation is quickly transmitted to agri and food inflation. Another reason why energy abundance is important, and why energy products like oil should NOT be taxed, no need for subsidy just do not tax it.
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See also:
Agri Econ 40, Food inflation higher than overall inflation, June 30, 2024
Agri Econ 41, Metro Pacific's More Veggies Please project, June 01, 2025
Agri Econ 42, Rising fertilizer prices, June 08, 2026
BWorld 874, Meralco rates are flat while fuel prices and political sensationalism are high
Meralco rates are flat while fuel prices and political sensationalism are high
June 9, 2026 | 12:02 am
My Cup Of Liberty
By Bienvenido S. Oplas, Jr.
Many groups and individuals keep attacking Meralco and other private distribution utilities (DUs) for the increase in electricity prices even if they know that the Middle East war has caused fuel prices to rise. Their attacks are based on emotion and political sensationalism and not reason, not on data, so I will show some numbers here that are publicly available online. Electricity
The rise in overall electricity prices in the latest billing period came from the generation charge, which increased from P7.67 per kilowatt-hour (kWh) in May 2023 to P8.79/kWh in May 2026. The transmission charge also increased, from P0.79/kWh in May 2025 to P1.41/kWh in May 2026. This is because the National Grid Corp. of the Philippines (NGCP) is forced to contract more ancillary services (AS), and the AS charge is now at a similar level as the transmission wheeling charge at around P0.70/kWh each.
There was a slight increase in the system loss charge, the universal charge for missionary electrification (UCME), and Feed-in Tariff Allowance (FIT-All) in the May 2026 billing.
But there was no increase in the distribution charge, and the supply and metering charge that went directly to Meralco and other DUs. There was also a refund for some customers, the Actual Weighted Average Tariff (AWAT) in 2025-2026, previously called “true up” in 2022-2023 (see Table 1).
Let us now check the prices of electricity from major power plants and generation companies (gencos) that supply Meralco. The largest increase in prices from May 2025 to May 2026 are from the gas plants using indigenous Malampaya gas — First Gas (FGCP) and FGP Corp. — about a P2/kWh increase. Gas plants that use imported LNG — SPPC and EERI — come next. PriceComparisons
People think that indigenous gas should remain cheap. No, that is not the case. Malampaya gas prices are pegged on Dubai crude oil prices, and are priced in US$ not Pesos. So, a rise in Dubai oil prices and the depreciation of the Peso mean windfall profit for FGCP and FGP Corp., owned by FirstGen (Lopez) and Prime CoreGen (Razon).
Coal plants like AboitizPower’s GNPower Dinginin, Masinloc Power Partners Co. Ltd.’s (MPCL) Masinloc Power Plant, and that of the Mariveles Power Generation Corp. still offer low prices, about half the cost of gas plants. The prices of the Wholesale Electricity Spot Market (WESM) are more than double this year compared with last year’s (see Table 2).
So it is clear. Meralco and the DUs are not to blame for the higher electricity prices, their distribution charges are flat. Also, the cost of fuel is high for power plants and gencos that use imported fuel like coal and LNG. Electricity
If people are looking for someone to blame for rising electricity prices, then blame the US and Israel for starting the Middle East war last February and blame Iran for choking the Strait of Hormuz. Blame also the gas companies that use domestic Malampaya gas. And blame intermittent solar-wind companies with no battery storage that force the NGCP to get more AS.
Political NGOs and other parties (like SELDA, SENTRO, Akbayan and others) that keep blaming Meralco and other DUs for the increase in the price of electricity are guilty of disinformation based on emotionalism and are lazy when it comes to doing some real research.
Meanwhile, as more intermittent and variable renewable energy (VRE) sources like solar-wind with no battery storage are added to the grid, coal and gas plants experience more frequent stops and starts because VRE are the priority and mandatory dispatch to the grid.
I asked Yari A. Miralao, the President and CEO of LNGPH (that owns the 1,200 MW SPPC and 1,275 MW EERI gas plants in Batangas) how the rising cases of start-stop affect their operation and pricing. He pointed out that both plants are designed for baseload and continuing operations so they can “provide the most efficient and reliable power for the grid. Two-shifting or cycling these power plants from minimum stable load to maximum output induces additional thermal and mechanical stress to the equipment resulting in (a.) more frequent maintenance and (b.) higher fuel and operating costs. LNGPH, nonetheless, does what it has to do to make sure it meets the system’s requirements in the most reliable and efficient way possible.” Energy& Utilities
I also chanced upon Manny V. Rubio, the President and CEO of Meralco Power Gen Corp. (MGEN), and I asked him how they balance their portfolio between stable and unstable energy to ensure overall power stability at competitive prices. The practical engineer-manager emphasized having a balanced business. “We believe in a diversified portfolio that delivers reliability, affordability, and sustainability. A successful energy transition requires balance — renewables must be complemented by dependable baseload generation and emerging storage technologies that ensure grid stability. Electricity
“As we continue to build and expand our portfolio of thermal, gas, and renewable energy assets, we are also investing in battery energy storage systems such as the one we recently energized in Toledo, Cebu and the one we are building in MTerra Solar to support the integration of intermittent renewable generation, avoid transmission constraints, and ensuring that electricity remains available.”
Good points made by the gentlemen.
I am no fan of having more VRE but there is a coercive law (RA 9513, RE law of 2008) in place that arm-twists companies and consumers to comply, so the compromise is to make sure that VRE is balanced with grid reliability. We should have no blackouts, even for a minute, even if the sun is not shining, even if the wind is not blowing.
PhilStar 96, PhilHealth fund transfer and the Ombudsman decision
PhilHealth fund transfer and the Ombudsman decision
ENERGY, INFRA AND ECONOMICS - Bienvenido Oplas Jr. - The Philippine Star
June 11, 2026 | 12:00am
https://www.philstar.com/business/2026/06/11/2534251/philhealth-fund-transfer-and-ombudsman-decision
From only P8.22 trillion in 2019, it rose to P10.25 trillion in 2020, P12.15 trillion in 2021, P14.97 trillion in 2023 and P18.05 trillion in 2025 — a P10.2 trillion increase in just six years. Latest data showed our debt at P18.85 trillion in April 2026.
Our budget deficit also increased from an average of P0.61 trillion a year in 2018-2019 to P1.54 trillion a year in 2020-2025.
Our interest payment alone for the public debt is rising from P360.9 billion in 2019 to P429.4 billion in 2021, P628.3 billion in 2023 and P864.1 billion in 2025, or an average of P2.37 billion a day.
In January-April 2026, our interest payment amounted to P336.7 billion or an average of P2.8 billion a day. Principal amortization is not yet included.
With this kind of ever-rising public debt stock and ever-rising interest payment alone, fiscal managers are expected to find ways to reduce the debt burden. A P1 billion reduction in interest payment is P1 billion that can be used for other economic and social spending.
That is one of the fiscal pressures when former finance secretary and now Executive Secretary Ralph Recto issued a DOF circular in 2024 that transferred P60 billion in excess funds of PhilHealth back to the National Treasury.
Recto was sued by some doctors and lawyers with malicious and delusional accusations of “Illegal use of public funds or property” and “plunder.”
At first glance, these two accusations are already wrong and fictitious, allegations that are based on emotion and not reason.
One, there was a legal order from Congress via RA 11975 or the General Appropriations Act of 2024, Special Provision 1(d) saying that “Availment of Unprogrammed Appropriations… Fund balance of GOCCs… The Department of Finance shall issue the guidelines to implement this provision…”
So Congress ordered the DOF. The DOF cannot disobey Congress so Recto issued DOF Circular 003-2024 that remitted the PhilHealth excess funds back to the National Treasury. The accusation of “illegal” use of public funds is fictitious because there is legal basis, a budget law enacted by Congress.
Two, “plunder” means “use of high office for personal enrichment.” There was only movement of funds from PhilHealth to the National Treasury, from one government agency to another agency and not from government to him or his family, subordinate or business associate. The accusation of “plunder” is fictional.
See these reports in The STAR this year: “Doctors, lawyers file plunder, graft complaints vs Recto.” (Jan. 15), “Plunder raps filed vs Recto, ex-PhilHealth boss” (Jan. 16), “Health reform advocate files plunder raps vs Recto, Go over PhilHealth fund” (May 26). And just the other day, “Ombudsman dismisses plunder, malversation raps vs Recto over PhilHealth funds” (June 9).
The Ombudsman headed by former Justice secretary Boying Remulla dismissed the criminal and administrative complaints against Recto and (Emmanuel) Ledesma of PhilHealth. Good ruling, Ombudsman Boying.
Back to fiscal economics. By transferring P60 billion back to the Treasury, Recto has reduced government borrowing by the same amount in 2024. The average rate of government 10-year Treasury bonds in 2024 was 6.27 percent. So the government has was able to save interest payments of (P60 billion) x (6.69 percent) = P3.76 billion.
The government avoided borrowing P60 billion plus it avoided interest payment of P3.76 billion. This equals P63.76 billion of avoided increase in our public debt stock in 2024. That is a significant amount of savings. The emotional complainants are incapable of comprehending this side of the issue.
On the report of “Health reform advocate files plunder raps vs Recto, Go over PhilHealth fund,” just two weeks ago, it refers to Dr. Tony Leachon. The “health reforms” that he advocates are actually the same health reforms pushed by so many other health groups and NGOs, like more money for DOH and PhilHealth, more sin tax hike.
My impression is that the “health reform” that really differentiates his agenda with the agenda of other health groups and NGOs is that he wants to be the next DOH Secretary. I could be wrong in this impression but that is how I see his continued high-profile political actions.
He has coined the “health reform advocate” since about 2012 to present. Too bad he has been ignored many times by four presidents. The DOH Secretaries from 2010 to present are Ennrique Ona, Janette Garin, Paulyn Ubial, Francisco Duque III, Maria Rosario Vergeire and Teodoro Herbosa.
So I think Recto’s statement that Leachon’s political and legal actions are part of his “political audition” for the next administration is correct.
Consider also that during the lockdown dictatorship, the Philippine economy contracted by -9.5 percent in 2020 – the worst in Asia that year and the worst in the Philippines’ economic history since post-WW2.
Our public debt/GDP ratio also jumped big time from an average of 37.4 percent in pre-lockdown 2017-2019 to an average of 55.3 percent in 2020-2022.
The political tyranny during the lockdown was enabled and supported by medical tyranny, that people must be prevented from going out to work or travel unless they are “vaxxed-vaxxed-vaxxed.” COVID vaccination became mandatory, choice was zero because people cannot even enter schools, malls, office buildings, ride planes or boats unless they have a vax card.
Many of the high profile doctors and medical tyrants that period have since become silent, they must have realized the economic sabotage they have done to the country.
But Mr. Tony Leachon continues with his high profile action.