MANILA, Philippines - President Arroyo is set to officially declare a power crisis in Mindanao and implement emergency measures costing almost P10 billion.
It was not yet clear, however, whether she would call a special session of Congress to secure authority to increase the country’s generating capacity as proposed by Energy Secretary Angelo Reyes.
“I’m adopting his (Reyes’) recommendation,” Mrs. Arroyo told reporters in a chance interview at the Palace.
Reyes earlier asked the President to call Congress to a special session to allow both chambers to pass a joint resolution allowing her to implement measures to produce additional generating capacity.
He said she could invoke Section 71 or the Electric Power Crisis Provision of the Electric Power Industry Reform Act (EPIRA) of 2001, which provides that “upon the determination by the President of an imminent shortage of the supply of electricity, Congress may authorize, through joint resolution, the establishment of additional generating capacity under such terms and conditions as it may approve.”
Reyes said the power gap has not been adequately filled by the private sector and that the government, through the National Power Corp., may have to step in.
He clarified that he was not recommending constitutional emergency powers for the President but merely additional authority under the EPIRA law.
Deputy presidential spokesman Ricardo Saludo could not say whether Mrs. Arroyo would call for a special session.
He said it would be hard to summon the senators and the congressmen who are out campaigning.
“We will just wait until Congress re-convenes. Congress will re-convene, I believe in June, normally just to count the votes for the president and the vice president but they can also transact other business and if they wish, they can certainly enact measures relating to the procurement of power-generating facilities,” he said.
Saludo said the Energy Regulatory Commission, an independent body that sets power rates, should also act on pending cost recovery petitions filed by the power producers.
“These petitions must be addressed to give security to our power companies so they can undertake necessary measures to ensure the supplies of their generating plants,” he said.
“It has been a long-time policy of the government to encourage private investment to come in and build generating plants which we need as our economy grows and as our need for power in different parts of the country increases,” Saludo said.
Mixed reactions
In Compostela Valley, Nacionalista Party standard-bearer Sen. Manuel Villar Jr. said he welcomed the President’s decision to use her power within EPIRA to address the energy crisis in Mindanao.
“Well, it’s within the powers given to her under the EPIRA law. She can use that to deploy power barges in Mindanao,” Villar told reporters.
But he stressed he is against the proposal to put the country under a state of emergency, saying it might be used by Mrs. Arroyo to prolong her stay in power.
“I am totally against the state of emergency, I am against martial law. That would be totally unacceptable,” Villar said.
But his running mate Sen. Loren Legarda, who was in Davao City, was not enthusiastic about giving emergency powers to Mrs. Arroyo.
“What would the emergency powers be? It would be for nothing as emergency powers would not translate to rains. It would not also bring electricity to the people and it would not help address climate change. It is best that emergency powers should not be used,” she said.
The Liberal Party, for its part, expressed belief there is no need for the President to invoke Section 71 of EPIRA.
“If we study Section 71 carefully, it is also dangerous because you will give the government the authority to enter into contracts to increase generating capacity,” LP campaign manager Florencio Abad said.
Abad said the private sector could be tapped to provide power barges instead of Napocor, which has been tasked under the EPIRA to privatize 70 percent of the power plants and independent power producers’ contracts that it owns.
Abad cautioned that Mrs. Arroyo’s use of Section 71 might again lead to the signing of onerous midnight deals, like what happened during the time of former President Fidel Ramos.
“There are also mobile generating sets that can be leased aside from the power barges, so why activate Section 71?” Abad asked.
Abad said the Department of Energy (DOE) could facilitate the inventory of generating sets in the south and let the private sector provide the power barges.
“I think the main concern will be the high cost and whether they can get a good return on investment. So the DOE can talk to the Energy Regulatory Commission and allow these firms to pass on the cost to the consumers at reasonable rates,” Abad said.
“The DOE should just assert its leadership. At this time of crisis, the government should also not allow the private companies to make a killing in terms of profits but at the same time they should be assured they would not lose money if they provide the power barges,” Abad said.
“They have yet to exhaust all means to resolve the power crisis. We might end up having independent power producers again that we have to pay even if we no longer need the electricity from them because the crisis is over. So it’s better for the private sector to enter into short-term contracts with the help of the government,” Abad said.
He said allowing Napocor to again increase its generating capacity would be a step backward.
“The reason why the rates are high is because of lack of open access and competition among generating firms, which should have happened as early as 2004 under the EPIRA,” Abad said.
He also said it would be hard to make Congress convene a special session because many of the lawmakers were already in their respective districts campaigning.
Senate President Juan Ponce Enrile was also quoted as saying in abs.cbnnews.com that it would be difficult to muster a quorum for a special session.
“I am willing to convene a special session to take up that proposal, but the question is if we can muster a quorum to convene a special session, since everyone is campaigning now,” Enrile said.
GMA to blame
Senators said it’s the Arroyo government’s failure to implement a sound energy program in its nine and a half years in office that is responsible for the country’s power woes.
“The power situation could have been handled in the nine and a half years of the current regime but was not. Now we have to resort to securing expensive power to the detriment of our people,” LP standard-bearer Sen. Benigno Aquino III said.
“This is criminal negligence. We know that El Niño was going to visit the country. They knew that Mindanao was going to have a power supply problem. They should have mapped out a plan earlier on,” Aquino said.
He accused the administration of deliberately dragging its feet in implementing the EPIRA-mandated privatization of 70 percent of the power plants and IPP contracts owned by Napocor.
“Without the 70 percent privatization target mandated by the EPIRA, open access cannot work. The lack of open access by power producers to eligible consumers discourages investors from building new plants,” Aquino said.
His running mate Sen. Manuel Roxas II said it was regrettable that the government would have to resort to emergency measures to solve the power crisis because this would lead to more expensive electricity.
“Power barges literally burn diesel and bunker fuel, the most expensive form of power. And of course they will pass on whatever the cost to the consumers,” Roxas said.
“It’s like going to the gasoline station and burning the oil for electricity. It’s double the cost because ordinarily we pay P5/kwh plus distribution and other costs, it will be P8 or P9 per kwh. So with the power barges, we pay double,” Roxas said.
“The poor people will have to shoulder the burden of government negligence and incompetence. There’s no such thing as a free lunch,” Roxas said.
Sen. Francis Escudero said power barges were not sustainable and the government must think of other means to immediately solve the energy problems.
“I will oppose the grant of any emergency powers for President Arroyo because she might just use it to enter into onerous midnight deals,” Escudero said.
Minority Leader Sen. Aquilino Pimentel Jr. said he has received information that Napocor is in possession of four idle power barges that could be used to remedy the power shortage in Mindanao.
“There is no need for emergency powers that will only give chance for grafters to do their thing,” Pimentel said. With Aurea Calica, Donnabelle Gatdula, Christina Mendez, Edith Regalado