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Wednesday, May 21, 2008

 

GSIS, Meralco trade barbs

President forms group to look at lowering rates

By Angelo S. Samonte And Jomar Canlas, Reporters

The word war between the Government Service Insurance System (GSIS) and the Manila Electric Co. (Meralco) continued during a Cabinet meeting in Bohol on Tuesday. GSIS President Winston Garcia said Meralco could reduce power cost by 6 centavos to P3 per kilowatt-hour, should the power distributor stop its “abusive measures.”

Meralco officials fired back, saying the high power rate charged by the National Power Corp. (Napocor) is the reason behind the high cost of power in Metro Manila. They denied incorporating the electric bills of the Lopez-owned companies in the system losses being charged to electricity consumers.

They also reiterated their desire to scrap the expanded Value-Added Tax (E-VAT) on fuel and electricity to reduce power rates in the country.

Only Meralco President Jesus Francisco and Board Director Christian Monsod attended the Cabinet meeting with President Gloria Arroyo on Bohol island.

The Lopez family who runs Meralco, was supposed to meet with the President, but the Lopezes did not attend the meeting, saying Malacañang had not invited them.

GMA orders study

President Arroyo on Tuesday created a committee to study how to cut Meralco’s power rates and to know if a leadership takeover serves the public’s best interest.

“President Arroyo also instructed the core group of economic managers including the secretaries of the Department of Budget and Management, Department of Energy, Department of Finance, Department of Trade and Industry and National Economic and Development Authority to study the positions presented by Meralco on concerns recently raised by the government. The group would then recommend actions to further cut power costs,” Cabinet Secretary Ricardo Saludo said.

Secretary Cerge Remonde of the Presidential Management Staff said the study group will only tackle policy issues and does not intend to duplicate the functions of the Energy Regulatory Commission, which is also studying the issue of power rate hike.

Saludo reported Francisco and Monsod said Meralco is willing to undertake open access and review its power supply contracts after President Arroyo expressed support for open access or free competition among independent power producers to avoid monopoly in the power sector.

The Cabinet also urged the renegotiation of all Meralco’s contracts with its power suppliers.

“The President and the Cabinet supported the early implementation of open competition in power supply through open access. They also urged renegotiation of Meralco’s contracts with its power suppliers. Meralco said it is willing to undertake open access and review its power supply contracts,” Saludo said.

Meralco officials said all contracts with independent power producers should be reviewed to ensure equal treatment.

Open access would allow big power users consuming one megawatt a month or more to buy power from generating plants they choose at the cheaper rates.

Plunder charges filed

Also on Tuesday, plunder charges were filed before the Ombudsman against 15 Meralco officials, the Energy Regulatory Commission and Napocor for making illegal charges to the public.

In a five-page complaint-affidavit, multisectoral consumer groups filed complaints for violation of Republic Act 7080 or the Anti-Plunder Law along with fraud and illegal exactions, economic sabotage, large-scale estafa and violation of the Anti-Graft and Corrupt Practices Act against Meralco Chairman Manuel Lopez, Lopez Group of Companies Chairman Oscar Lopez, Director Eugenio Lopez 3rd, Meralco President Francisco, Senior Vice-President Ireneo Acuna and Treasurer Rafael Andrada.

Also included in the charges are Energy Regulatory Commission Chairman Rodolfo Albano Jr., former commission Chairman Fe Barin, Commissioners Mary Anne Colayco, Carlos Alindada, Leticia Ibay, former Commissioners Oliver Butalid, Jesus Alcordo, Raul Tan and Alejandro Barin. The commission officials are also charged administratively for violation of the Code of Conduct and Ethical Standards for Public Officials and Employees.

Nongovernment groups Ang Puwersang Pilipinong Inaapi of Chairman Alberto Ong Jr., along with Alyansa ng Koalisyon Uno at Overseas Filipino Workers, Bagong Bayani Organizations, Alliance of Concerned Young Builders Organization, Council of Commonwealth Affairs, National Federation for Peace in Muslim Mindanao and several other multisectoral groups led the filing of the complaint.

According to the complaint, “… their personal and business gain, money in the aggregate amount of P30-million illegally collected from the three and a half million customers from 1994 to 1998 which Meralco used to pay for its income tax liabilities and obligation due the government as conclusively declared with finality of judgment by the Supreme Court.”

The complaint avers that such amount is considered as public funds in the nature of income taxes “to the damage and prejudice of the government and the Meralco customers/consumers.”

They also questioned the return of Meralco and the national television network ABS-CBN to the “Lopez clan without any single centavo paid, and without the consuming public knowing the terms and condition for said turnover.”

The complainants included as annexes their billings and letter of Meralco to then-President Ferdi-nand Marcos selling Meralco to the government.

   

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