AMID ENERGY CRISIS: Gov't urged to revisit privatization policy

CEBU, Philippines - The Trade Union Congress Party-list has lambasted the government for its alleged failure to provide stable supply and cheaper electricity to consumers.

TUCP Rep. Raymond Democrito Mendoza said the country continues to experience brownouts and high electricity costs despite five years of power privatization.

The situation is said to be contrary to the expected effect by the move to privatize utilities purposely to foster competition among energy players, improve operation efficiencies of power companies, ensure the constant supply of electricity and reduce power rates.

“What we have now is the emergence of private and powerful monopolies and cartels and increasing electricity tariffs which further bleed our workers and consumers,” Mendoza said in a statement to The FREEMAN.

TUCP noted that the “inefficiency” argument against state maintenance of power utilities is backfiring in the face of present brownouts.

TUCP cited the Korea Electric Corp. (KEPCO) which is 95 percent owned by the Korean government, which is able to provide good services to its consumers and still operates profitably overseas including in the Philippines.

“The privatization of energy did not deliver the intended results. We really must reconsider our privatization policy before our people begin to be really pissed-off,” added Mendoza.

Mendoza said the argument that privatization will level the playing field and will create an open competition is refuted by actual facts.

He said TUCP is very concerned about the oligopolistic tendency of the capital wherein owners of power generators are also the stockholders of companies that distribute electricity to consumers and eventually, only few powerful individuals and groups will run the entire power industry.

Mendoza suggested that the government consider the alternative scheme to privatization called workers’ enterprise that allows workers to actually own and manage companies like power plants and distribution utilities.

Mendoza said workers are capable of owning and managing companies and that there are many examples of successful workers’ enterprises in other countries.

TUCP Party-list, which represents the largest percentage of organized workers in the country, is batting for better economic policies that would serve the interests of the majority of workers and consumers. — Mitchelle L. Palaubsanon/JMO   FREEMAN NEWS)