Are lies becoming norm?

Glad to be back after a short two-week break. It was short but invigorating.

My last column before I went on my annual sabbatical leave, "Peddling ‘lies’: Meralco or Napocor" (The Philippine STAR, May 26, 2006), elicited an immediate reaction from Meralco’s Elpi Cuna. Unfortunately, he could not wait for my return and had his reply published in The Philippine STAR’s Mailbox last May 30, 2006.

Since his letter was already given prominent space, I need not repeat its contents here, except to say that contrary to Elpi’s view, I believe that the public should know if there are differences in the claims of Meralco and Napocor. They have the right to decide for themselves as to who is peddling "lies."

Napocor reaction

Similarly, National Power Corp. (Napocor) president Cyril C. del Callar sent me a reaction to the same column. Here are parts of his letter:

"Thank you very much for your column last May 26, 2006, entitled "Peddling ‘lies’: Meralco or Napocor?."

"Indeed, the subject of who provides the cheaper electricity has most recently been the subject of various press releases, statements and print advertisements in the media. As a government agency, National Power cannot compete in terms of advertising because of its limited budget.

"However, we did send a letter to the Energy Regulatory Commission (ERC) detailing our side of the issue, and we are very thankful that you were able to get a copy of the said letter, and have it publicly discussed in your column.

"More than anything else, if we may add, National Power has always maintained the position of having one of the lowest, if not the lowest, generation rates in the country. We have always observed efficiency in operations, optimizing resources and finding ways to lower costs, without sacrificing quality and reliability.

"In 2005 alone, we were able to save more than P1 billion because we adapted a generation mix that decreased the utilization of oil-based power generation, to as low as one percent in the Luzon grid. We increased the utilization of less expensive power generation plants such as geothermal and hydro.

"Also, with the compulsory implementation of our time-of-use rates, our customers such as Meralco, can now enjoy much lower electricity costs should they avail of our off-peak rates, which comes to as low as P1.80 per kilowatt hour.

"Again, we thank you for your column. We believe that the reading public deserves to be objectively informed of issues that affect their daily lives. We in National Power assure your readers that we are doing our very best to continue providing the best quality service, to have power flowing to their homes, businesses, wherever and whenever they need it."

Reader’s reaction

Are lies nowadays becoming the norm? So it seems, according to reader John P. Santos of Carmona. Here is his letter in reaction to the same column on "Peddling lies":

"I read your interesting article about the Napocor and Meralco differences.

"Nowadays it is normal to tell a lie. I think the general public doesn’t mind (I don’t mind) those lies as long as the consumer bottom line is not affected. Everybody just talks about it, and nobody really can do (anything) about it except ERC (Energy Regulatory Commission), Napocor and Meralco.

"The newspaper people’s job is to snoop into the details or truth, and tell the people about it. I think you are hoping too that the rates charged by Meralco are lower, and hope they tell us the truth.

"You see, the implementation of EPIRA (Electric Power Industry Reform Act) (RA 9136) (was) supposed to solve all these problems and inaccuracies about billings etc. It (was) supposed (to provide) us (with an) efficient power system that includes efficient meter reading and less system losses.

"But where are we at this point? Do you know that the Philippines has one of the highest system losses? The consumers are subsidizing the power usage of the power thieves, and it is built into our bills by law. Just imagine Meralco users are charged about 10 percent systems loss, and much more (on) our side of the Meralco franchise area.

"We can’t avoid technical losses but we can improve it. We can reduce non-technical losses (theft and pilferage) but the DU (distribution utility) or EC (electric cooperative) may not be doing their best to improve the situation.

"The original EPIRA timetable has not been followed and we are behind at least for two years. Privatization of Napocor assets is delayed and (has) affected the implementation of WESM (Wholesale Electricity Spot Market) and the open access.

"It is because the people behind it in one way or the other lied about the truth. DOE (Department of Energy), PSALM (Power Sector Assets and Liabilities Management Corp.) and Napocor are telling us wrong numbers about the percentage of Napocor assets sold to private sector which is very crucial part of a successful implementation of EPIRA.

"ERC is telling everyone about the goodness of time-of-use (TOU) charging system but TOU is not implemented yet at the consumer level. Meralco applied for the TOU rates last year and ERC is telling us that they do not have the time to look at it despite that fact that ERC ordered every DU and EC to submit their TOU rates on a certain time table last year.

"However, they themselves have not looked at Meralco’s TOU rates application. Meralco is the only one that complied with the order. ERC is not doing something about it.

"TOU is supposed to benefit the consumers if electricity is consumed during off-peak times. We are the only country that says too much and too many things about the beauty of the power (industry) deregulation but has the least accomplishments.

"Why? It is because it is normal to tell lies."

Where is ERC chairman Albano?

The silence of ERC amidst these conflicting claims of Meralco and Napocor is deafening. Makes one wonder if ERC is on the ball or is just letting the issue die a natural death. In the meantime, the public is paying high electricity rates through its nose, and is kept in the dark as to this pricing issue.

What sayest thou, Honorable Albano.

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Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected] or at [email protected]. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz