This is probably the reason why Energy Secretary Vincent Perez appears to be in the line of fire – in media that is – almost everyday on crucial issues: the rising price of oil in the global market that bears directly on the common man’s jeepney fare and the housewife’s LPG cost; the question of whether or not there will be enough electric power in the country in the next few years which worry both industrialists and ordinary families; and, the cost of electricity which affects both big business operation and the daily budget of the working man.
We once asked Secretary Vince how he manages to stay sane amid the seemingly unending stream of challenges that the sector faces. His answer was simple: he has an entire "family" to help him address the issues and deliver what the public needs. While he draws much inspiration from her, Vince is, of course, not referring to his charming better half Leigh, but to the hard-working corps of heads of agencies in the sector that Vince calls "The energy family".
Vince has two pillars of energy within this family. One is National Transmission Corporation president Alan Ortiz, who we described in an earlier column as the "custodian of the country’s crown jewels", which are, of course, the valuable power transmission system that are stringed across the country – the very lifeline of our power supply.
The other is outgoing Philippine National Oil Company president and chief executive officer, Ambassador Thelmo Cunanan whom Vince has described as "the guiding spirit" of the energy family.
Ambassador Cunanan is moving on to become chair of the Social Security System. We sensed that Vince is feeling the loss of a valuable source of wisdom within his sector. He is, of course, constrained to support the move despite the vacuum that Ambassador Cunanan will leave in the family.
Much has been said about Ambassador Cunanan’s legacy to the energy sector. Under his watch, the national government received close to two and a half billion pesos in dividends. But the financial accomplishment is not the major reason why the sector will feel his absence, Vince says.
The Ambassador and Vince are also kindred spirits as far as the protection of the environment is concerned. This is why the PNOC, under the Ambassador’s leadership, has given much focus on the promotion of "clean energy". The use of coco-diesel and compressed natural gas is an advocacy close to the Ambassador’s heart; so is the use of solar energy of which the country has an abundance.
Vince has always been proud of the Energy Globe Award which Ambassador Cunanan brought home from Austria last year. Unknown to many, the Philippines bested 98 other countries for this award which recognized PNOC’s leadership in the promotion of efficient and renewable energy.
But this is just half of the legacy. Vince says what the energy family will remember best would be the Ambassador’s "passion for people" which the combined military, diplomatic and public service experience must have inculcated in him.
Vince called our attention to the fact the Ambassador Cunanan has initiated a lot of projects that have strong social orientation. The outgoing PNOC head was the moving spirit behind the GMA Abot-Kayang Pabahay at Palupa program which is hosted in a PNOC property in Cavite. And just last year, he ensured that the PNOC Employees Housing Project in Sta. Mesa would be completed soonest.
True, Ambassador Cunanan managed billion-peso PNOC projects in collaboration with international companies. Vince says, however, that it is the projects that have small-community impact that are dearest to the Ambassador. Among these is the 30-megawatt power plant that will soon rise in Talisay, Negros Occidental.
The power plant is not a billion-peso undertaking. But it will better the life of Negrenses in the area by providing the power generation needs of the local electric cooperative. Not a big monument. But definitely one that pays tribute to Ambassador Cunanan’s "passion for people".
The Ambassador is one big loss to the power sector, indeed. But what a gain to the SSS.
These groups, along with some self-styled consumer advocates, are up in arms over Meralco’s rate increase application and the impending increase in Napocor’s rates.
These oppositors believe the rate increases are not justified. The rate increases, they rant, would just be "new affliction to consumers who are still reeling from previous month’s electricity rate increases."
These knowledgeable experts, who seem to love taking to the streets on account of anything they can find issue with, are obsessed with the thought that there are forces conspiring to focus their evil designs on the hapless taumbayan.
What leaves many amazed is how these groups believe the price hikes involve a nefarious conspiracy against the poor, suffering Filipinos. I too want to avoid having to pay more for utility services, but whether we like it or not, there is a rational explanation for price hikes we have been experiencing.
Fuel prices are soaring world wide. From just $18 a barrel earlier this year, global oil rates have reached $49 and are even expected to hit $50 due to instability in the Middle East. Coal, a major fuel used for power plants have risen from $30 a metric ton to $80. As a result of higher fuel price, Napocor has been saddled with a huge net operating loss. The delayed implementation of the Napocor rate hike leads to financing shortfall for Napocor in the range of P100 billion to about P165 billion, thus adding to government’s deficit.
Compounding this is the fact that we are facing a power shortage.
It can be difficult to accept, but until we start paying the accurate cost of power, no one will even consider investing here to build the needed power plants so that we will be able to avoid the vicious cycle of power shortage.
There are things we must learn to accept and endure. Things like taking our shots, swallowing our pills, and doing our homework. There are realities we cannot deny, like rising global prices of oil and weakening peso against the dollar. There are facts we cannot change, like the fact that electricity is not free. No matter how hard we rant and rave, we must pay for it or live without it. There are things that are hard to accept but we have to because it is for our own good, like paying the accurate cost of our own power.
I would rather pay for an increase in my electricity bill than be saddled with so many new taxes as well as increased taxes. A major reason, if not the main reason, why our government is bankrupt is because of the huge subsidy it spends for Napocor. Unless we pay the true cost of electricity, other government services such as those for education and health will definitely suffer. Unless we bite the bullet, we will end up spending much much more.
The militant groups have intensified protest actions to stop the rates increase petitions of Napocor and Meralco. They also warned that Napocor’s petition to increase its rate could result in unrest by consumers. Yet despite their volatile rhetoric, they have yet to come up with anything that can honestly help address or solve the problem.
We can’t always take to the streets and oppose issues we can’t accept – like children in their "terrible twos," the age when the reaction to everything is "no."
Such antics will do nothing but prolong or even add to the severity of our own agony. We need to pull together and change our attitudes from destructive to constructive right away – or sooner.
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