Triple whammy

Over the past weeks, several groups have been airing warnings that electric power consumers are facing a double whammy following the recent okay for a National Power Corp. (Napocor) rate increase and the passing of the expanded value-added tax bill.

That’s the "good" news.

The bad news? It is probably going to be a "triple" whammy, after all. Not a "double" whammy.

The first whammy, of course, is the increase in Napocor rates. The Energy Regulatory Commission (ERC) has authorized Napocor to raise its generation charges so it can attain the required rate on return base. That is the profit that Napocor must reach in line with its agreements with foreign lenders. ERC has approved the petition so it will be reflected in our electricity bills some time in July.

The second whammy is the expanded value-added tax. VAT will now be slapped on power generation charges. And the VAT will be passed on to us. The bill allowed Napocor and other power generators to pass the VAT on to us because it is a consumption tax. So the more we consume, the more taxes we pay.

So what is the third whammy?

The third whammy is the looming death of the so-called lifeline discount rates. These are benefits that poor Filipinos enjoy – lower rates for those consuming 100 kilowatt-hours per month or less. Yes, this discount faces the specter of an early demise.

The death of lifeline discount rates may not have been premeditated. At best, it is what may be called "collateral damage".

It will be recalled that the Court of Appeals had earlier ruled against rate unbundling – the practice of breaking down our power bills into the simplest components so we know how much of what we pay goes to whom. The unbundled rate is the anchor of lifeline discounts. Kill unbundling, you kill lifeline discounts.

The issue is now before the Supreme Court. And prayers are needed. If the Supreme Court says the CA is correct in junking the ERC position on unbundled rates, lifeline discount rates are gone. If SC reverses the CA, the benefit will be saved.

So this is a time to pray.

The prayer must be led by the nearly two million beneficiaries of lifeline discount rates in Metro Manila. They might as well be joined by the million other lifeline discount rate beneficiaries of rural electric power cooperatives all over the country. It is not clear if provincial power consumers will be affected by an SC ruling upholding the CA. Let’s pray anyway.

Another possible "collateral damage" of a possible lifeline discount rate "demise" is the new Energy czar, Secretary Raphael Lotilla, himself. The humble and very likeable DOE chief has promised to recommend a longer life for lifeline discount rates. This was made soon after Napocor got its nod for higher generation costs just some weeks back. The promise was obviously made to cushion the impact of the increase and salve the frazzled nerves of housewives who will bear the brunt of higher Napocor rates.

If the CA position against power rate unbundling is upheld, the good Secretary’s credibility could be somewhat diminished. He has made a promise that will have no leg to stand on. Without the discount, what else could poor power consumers bank on ? What will cushion them from the impact of future Napocor rate adjustments ?

Coffee shop observers have noted that there have been no major upheavals against the recent approvals of significant Napocor rate hikes. They surmise that this must be due to the fact that Napocor has a new president, the feisty lawyer Cyril del Callar. The new Napocor boss has vowed to clean up the agency and to get rid of the overpaid executives who have given the agency a negative image in the past. Cyril is getting the benefit of the doubt that he will crack the whip on the entire Napocor organization given his reputation as a fearless lawyer.

With Cyril at the helm, Napocor will probably not be begrudged of its generation rate hikes. The public is pitching in to save the power firm, never mind that the higher Napocor charges would further burden an already over-stretched family budget.

The fact is the public is saving Napocor twice: one by way of the recent approved rate hikes; second is by shouldering the cost of the Napocor debt that the National Government has absorbed.

After we have all pitched in to save Napocor, let’s hope the lifeline discount rate can also be saved. The discount may not be significant to the rich. But to the average wage earner, this means a lot. It could mean a week’s rice supply. Or medicine for a sick family member.

The fate of the discount is in the hands of the SC now.

But we all know that prayer moves mountains. And prayer may just now be the only lifeline to the ultimate Power that we can count on.

Tech update

Trend Micro, a global leader in network antivirus and Internet content security software and services, has just announced a new product that will make make mobile devices more secure against viruses and spam.

Trend Micro Mobile Security will provide enhanced antivirus and SMS anti-spam protection for data-centric wireless mobile devices running on Microsoft Windows Mobile 5.0.

The enhanced protection, which will benefit mobile operators and enterprises globally, will become available during the second half of 2005. Trend Micro’s solution comes at a time when the global adoption of smart phones and the mobile security market are growing. According to a 2003 study by IDC, the mobile security market will grow from $161 million in 2005 to more than $992 million in 2008.

According to Raimund Genes who heads Trend Micro’s European operations and is responsible for mobile security products globally says that today’s smart phones and wireless handhelds are becoming mini computers that potentially have security risks similar to other computers. And as the network perimeter expands to encompass such devices, organizations and operators should consider appropriate security measures for protecting their users’ devices, he says. Trend Micro is focused on providing this additional network-wide protection as threats evolve and become more diversified.

Trend Micro Mobile Security protects devices running a number of operating systems. These systems include Windows Mobile 2003 for Smartphone, Windows Mobile 2003 for Pocket PC Phone Edition, and now Microsoft Windows Mobile 5.0.

For comments, e-mail at [email protected]