Power summit concerns vs privatization raised

CEBU, Philippines - A more direct action is now being weighed by stakeholders, labor unions, consumers and cooperatives to stop the privatization of Independent Power Producer Administrator of the Unified Leyte Geothermal Power Plant in Togonon, Leyte.

This was discussed yesterday during the Cebu power summit at the Cebu Business hotel organized by the Freedom from Debt Coalition.

Manjette Lopez, national vice president of FDC, said they have been lobbying and engaging with the Energy Regulations Commission and the Department of Energy to caution them against the privatization of the ULGPP.

“But instead, they have bid out the ULGPP to EDC (Energy Development Corporation) of the Lopezes. This is why we are now considering on taking more direct actions in order for the national government to stop the privatization,” said Lopez.

He said the summit was to be able to finalize their next plan of action and the day of action for those concerned in the Visayas region. He explained that sometime between now and early next year, the Power Sector Assets and Liabilities Management Corporation (PSALM) is going to bid out the IPPA contracts to private sectors. 

In the Visayas region, Lopez said, bidding will be done “to big sectors, to strips of pseudo-power producers as well as to electric cooperatives, selling it at P6M per megawatt hour.”

If this privatization will push through, Lopez said that electricity costs will definitely shoot up in the Visayas. “It will increase, most definitely. That is what we have experienced all over, wherever. Whether it is generation, transmission to distribution, an increase has undertaken where privatization has been implemented.”

She said that this is why they have gathered the stakeholders in Visayas to discuss the impact on the privatization of the ULGPP.

In Manila, Lopez said that protests are being made since the ERC have denied petitions to intervene on the Performance Base Rate electricity factor which is reportedly one of the reasons for an increase in electricity rates. She said that since the petitions have been denied, high electricity rates in Luzon will remain since PBR will be prevalent.

“PBR has been implemented ever since privatization has been implemented. Expect that once it is done in Visayas, rates will increase. We can project a 100 percent increase once privatization is implemented.”

Apart from the opposition on the privatization and their call for an extensive review of the Electric Power Industry Reform Act (EPIRA), the delegates’ manifesto yesterday included their commitment to unite themselves for the said advocacy under a coalition named Visayas Network Against Provatization of the power industry.

POWER CARTEL

Lopez said that they believe on the assumption that the power issue hounding the country is due to a power cartel.

“Since Almendras took over, privatization has been stepped up and so far with the bidding out from generation to transmission, these assets have been bid out to big names who we know are already big players in different fields, and now have entered the power industry.”

Lopez also added that they are questioning Senate Bill 3250 which is on the life extension of the PSALM for another 10 years. The PSALM is scheduled to end on year 2026.

But Lopez said that they do not believe on the need to extend PSALM. “The purpose of PSALM is to be able to resolve the debts of National Power Corporation which was at US$16.89B. But 10 years after its existence, liabilities of Napocor went up to US$17.2B.”

ON  ALMENDRAS

Former DOE secretary Jose Rene Almendras who was recently appointed by President Benigno Aquino as Secretary to the Cabinet was ‘welcoming’ on the woes of the stakeholders, said Lopez.

“I will say this, Almendras during our dialogues has been very welcoming on our presentations and positions.” However, Lopez said that at the end, they have always pushed through with their plans.

Lopez said that they are not aware yet of the position of the incoming DOE Secretary Jericho Petilla, who was invited to the Visayas power forum yesterday but failed to attend. Petilla was former governor of Leyte.

Lydia Ligahon, Secretary General for FDC Eastern Visayas said that they are hoping Petilla would remain true to his promise when he was still the governor that he would support their move to fight against the privatization of ULGPP. She said incumbent Governor Mimiette Bagulaya said that she will support them also. —(FREEMAN)