House opens debate on Transco bill

The House of Representatives opened floor debates last night on a bill granting the National Transmission Corp. (Transco) a 50-year franchise to install, maintain and operate power transmission lines.

Transco is a state firm created under Republic Act 9136, the Electric Power Industry Reform Act (Epira), to which the transmission facilities of the National Power Corp. were transferred.

Speaker Jose de Venecia told reporters last night that the franchise grant and the eventual sale of Transco’s assets could bring in as much as $2 billion (more than P100 billion).

He said the amount would be used to pay off part of Napocor’s huge debt which, in turn, would result in narrowing the government’s budget deficit and bringing down the controversial purchased power adjustment.

Rep. Juan Miguel Zubiri (Lakas, Bukidnon) defended the bill containing Transco’s franchise grant as chairman of the committee on legislative franchises.

He said the proposed grant is part of the program to privatize Napocor and its assets and eventually lower the cost of electricity through competition.

However, those opposed to the bill said they fear that the contrary would happen if Napocor’s transmission facilities are privatized.

The private operators could then dictate their prices like what happened in the case of power generation facilities built by the so-called independent power producers, they said.

They pointed out that power transmission is in the nature of a monopoly and the nation would thus be at the mercy of those who would acquire Transco’s assets.

Majority Leader Neptali Gonzales II said he and his colleagues would try to approve the franchise grant proposal last night.

"If we can’t do it tonight, we will surely approve the bill next week," he said.

De Venecia and other House leaders have promised President Arroyo that their chamber would act expeditiously on the Transco bill.

During Tuesday’s meeting of the Legislative-Executive Development Council (LEDAC) Mrs. Arroyo urged lawmakers to approve the measure and the Special Purpose Asset Vehicle (SPAV) bill.

The House had approved the proposed SPAV law before it adjourned last June.