Lawmaker hits deferment of Calaca plant rebidding

Rep. Alipio Badelles, chairman of the House committee on energy, has criticized government decision to defer anew the rebidding for the 600-megawatt, (MW) Calaca coal-fired power plant.

Energy Secretary Raphael P.M. Lotilla earlier reported that the scheduled bidding for the Calaca power plant has been postponed and reset to an indefinite date.

The Lanao del Norte congressman said one of the main reasons for the high electricity rates in the country is the lack of competition in the market. Thus, he expressed deep concern over the continuing delay in the privatization of the National Power Corp. (Napocor) assets.

"While the EPIRA (Electric Power Industry Reform Act) has mandated the privatization of the power plants of Napocor, the records would show that the privatization program is long-delayed," he said.

The lawmaker stressed he is doubtful of the efforts to speed up the privatization. "There seems to be no positive indication that this will be fasttracked," he said.

He said it is almost becoming a standard pattern to hear from energy officials tasked to dispose of Napocor’s assets to revise the dates of the scheduled biddings.

He cited the case of the National Transmission Corp. (TransCo) which was tentatively set for bidding this year but was moved to 2006, and as well as other assets under EPIRA.

Badelles said both the Power Sector Assets and Liabilities Management Corp. (PSALM) and the Department of Energy (DOE) have been reporting positive scenarios to the oversight committee of the Joint Congressional Power Commission. "But these are all on paper and are not supported by performance," he added.

While the road to the successful privatization of Napocor assets of is certainly difficult, Badelles pointed out that four years since the approval of EPIRA should have been enough time for energy officials to, at least, claim by this time that they are nearing their targets.

Badelles noted that as of now, only about 10 percent of the assets of Napocor have been privatized.