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Tuesday, May 06, 2008

 

UNO: Gov’t passing power job to business

By Jayson Cruz Luna Contributor

THE United Opposition (UNO) said Monday that the Arroyo administration is passing the blame to the private sector, particularly to the Lopez family and the Manila Electric Company (Meralco), for its alleged failure to implement reforms in the power sector and keep the cost of electricity down.

UNO President and Makati Mayor Jejomar Binay said the “power play squeeze” being applied on the Lopez Family and their company [Meralco] was another Palace strategy to blame the private sector for the country’s power woes.

President Gloria Arroyo had earlier called on the business sector to join her in a “tough legal fight” with the Lopez-led Meralco before state energy regulators as she announced that the Energy Regulatory Commission (ERC) will start hearing on May 6 the government’s omnibus petition seeking to force Meralco to bring down the power rates it is charging residents in Luzon, including Metro Manila.

She also announced that she had ordered the state power generator, the National Power Corp. (Napocor), to charge Meralco only P4.11 per kilowatt hour, the same rate it charges the Luzon electric cooperatives, instead of the P6 to P10 per kWh that Meralco has been buying from Napocor and the wholesale electricity spot market (WESM).

Napocor, she said, will now be charging government-run economic zones P3.52 kWh, from P4.11 kWh as “The generation cost of high-load factor Peza ecozone locators has been reduced to an average Napocor billing rate to Meralco, not of P4.11, but of P3.35 per kWh.”

Mrs. Arroyo’s initiatives, however, met skepticism from the opposition.

“Seven years after the enactment of Electric Power Industry Reform Act of 2001 (Epira), the Arroyo administration has failed to privatize power utilities necessary to reform the energy sector and keep the cost of electricity within the reach of the poor,” said Binay.

The opposition leader added that Mrs. Arroyo consistently blames Meralco and the Lopezes, although the Napocor is the culprit.

“Instead of properly identifying the National Power Corporation [Napocor] as the obvious culprit, President Arroyo deviously deflects the blame to Meralco and the Lopez family,” Binay said, adding “she is being in character.”

UNO National Capital Region (NCR) Chairman San Juan Mayor JV Ejercito said Malacañang spin doctors have designed the Meralco “power play squeeze” to divert public attention from the worsening rice and food crisis causing unrest among Filipinos.

“The Palace is trying to divert attention from the worsening rice crisis. After seven years and P145 billion of people’s money spent, President Arroyo miserably failed to make the Philippines achieve food security and self-sufficiency,” Ejercito explained.

“This, despite the recent lucrative rice purchases of National Food Administration [NFA] and Malacañang’s latest fair-haired boy Arthur Yap,” he added.

Binay noted that Meralco does not impose additional charges on power generation costs, but simply passes onto consumers the charges being imposed by the state-owned Napocor that still controls 70 percent of all power generation in the country.

“The Meralco rates are lower than those quoted by Napocor as can be seen in Wholesale Electricity Spot Market Overview [WESM] figures and the Meralco reports to the Energy Regulatory Commission [ERC],” Binay said.

He also said the timing of Mrs. Arroyo’s tirades against Meralco was “suspect” and “could very well be part of a pattern of harassment against Malacañang’s perceived enemies,” given the critical stance taken by ABS-CBN which is also owned by the Lopezes, against the government on the issue of media restriction.

“I agree that we must lower the cost of electricity, but I deplore the cavalier manner which Malacañang is undertaking to achieve this end. It is passing the blame to the private sector when it should review its own failed policies on power and energy,” Binay explained.

Over the weekend, Executive Secretary Eduardo Ermita expressed concern regarding high electricity rates that prompted Mrs. Arroyo to go before state energy regulators.

Lawmakers had questioned President Arroyo’s call for big businesses to back her petition against Meralco, saying it was just “a continuation” of her fight against the Lopez family.

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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