Opposition vows action vs onerous IPP contracts

The united opposition vowed yesterday to immediately work for the annulment of the supposedly onerous contracts with 29 independent power producers (IPPs), saying these have imposed a heavy burden on the Filipinos.

The repeal of the "onerous" IPPs was the highlight of a legislative agenda for the Second Regular Session formulated by the opposition in a two-day workshop at Clark.

Sen. Edgardo Angara, president of Laban ng Demokratikong Pilipino, said the legislative agenda covered seven major reform areas and was partly drawn from inputs of business, labor, farmer-leaders and various people’s and non-governmental organizations.

The "defective" IPP contracts were blamed for the exaction of the controversial purchased power adjustment (PPA) that had almost doubled the power utility expense of consumers.

Angara warned of the "devastating effects" of the PPA on all Filipinos nationwide, as he also revealed plans of the opposition to look into the PPA of power distributors like Meralco.

Sen. Blas Ople, rumored to be joining the Arroyo Cabinet soon, proposed the hard-line stand against the IPP contracts and the taking of immediate steps to annul them.

"The government has no choice but to abrogate such contracts, which are onerous and disadvantageous to the government," Ople said.

Ople said a soft statement and a weak position on the onerous IPP contracts would be a betrayal of the opposition’s commitment to protect consumers from the "monstrous" electric rates that are rooted on the onerous IPP contracts.

The legislative agenda of the united opposition focused on seven reform areas. These are: protecting the interest of the consumers, promoting agricultural and rural development, increasing global competitiveness of the Philippine industry, improving the country’s fiscal position, political and constitutional reform, improving peace and order and national security, and instituting genuine social reform.

The united opposition said each of the seven major reform areas would be given flesh by specific legislative measures.

Angara cited the urgent need of enhancing the Philippines’ global competitiveness, as he warned of dire economic stress when the Asean Free Trade Agreement is implemented next year.

"A deluge will befall us. It will lower tariff at a uniform three to five percent. Many agricultural and industrial products from abroad will come in, and we will not be able to compete," Angara explained.

Sen. Vicente Sotto III, who was also reported set to join the administration bloc in the Senate, also attended the two-day workshop of the opposition, that included several opposition and independent senators, congressmen, and local government officials. — With Ding Cervantes