By Lorie A. Cascaro
Jade C. Zaldivar
MINDANAO leaders want government to look into an alleged conspiracy among the big players in the power sector in creating an “artificial shortage.”
This, as some officials claimed that President Aquino did not have sufficient information about the real situation when he attended last Friday’s Mindanao Power Summit.
Cross ownership
There is a need to investigate the cross ownership of the power industry in Mindanao, according to Secretary Luwalhati Antonino of the Mindanao Development Authority (MinDA) at the close of the summit attended by President Benigno Aquino III at the Waterfront Hotel, Davao City.
Asked about the alleged conspiracy among power sectors resulting in “artificial power shortage,” Antonino replied, “Ang nakikita namin, it’s a cross ownership kasi ikaw na may-ari ng generator, ikaw pa ang may ari ng transmission, ikaw pa yung distributor, so diktado mo lahat. Ito yung dapat tingnan.”
She added that the Electric Power Industry Reform Act (EPIRA) failed in its purpose of creating a “regime of competition” because in reality there are only few players in the industry.
Presenting viable solutions to the power situation in Mindanao at the summit, Davao del Norte Gov. Rodolfo del Rosario said cross ownership should be absolutely prohibited between and among the generation, transmission and distribution sectors as a result of the EPIRA.
He asked the President during the conference to review the EPIRA because privatization of power assets has resulted in cartels, such that only a few in the private sector are involved.
“The EPIRA has not worked for the island of Mindanao after 11 years of implementation,” he said in his presentation.
Meanwhile, Rep. Daisy Fuentes told reporters that she was dismayed by the EPIRA, admitting that she was one of the legislators who passed the law in 2001. Fuentes also served as governor of South Cotabato for three terms before goping back to Congress.
“Kaya naman kami nag approve ng EPIRA kasi naniwala kami doon sa mga experts na ito ang pinakatama,” she said.
“Yung sinabi nilang walang cross ownership, it’s happening,” she said, adding that reasonable rates of electricity have not been attained in contrast with the objective of the law.
Non-transparency
Mayor Darlene Custodio of General Santos City also told the President during the conference, “There is a feeling of non-transparency,” because until now no one is telling us exact numbers.
Noting the issue on transparency, Fuentes said, “Kasi baka maraming nagsasabotahe, baka hindi totoo tong mga numbers.”
She added that some members of the House are also suspicious about the national agencies involved because of their failure to give data during committee hearings.
“Alam nyo na ngayong dumating si Presidente, napwersa silang lahat na gumalaw lahat at magbigay ng data nila,” she said.
Further, she lauded Del Rosario for his presentation of the nine-year income of the National Power Corporation (NAPOCOR), saying it was her first time to see data of the national agency.
Antonino also hit the non-transparency, particularly of the Power Sector Assets and Liabilities Management Corporation (PSALM) for not providing her office with data.
“Dalawa lang nakuha namin na financial statements from PSALM,” she said, citing the data shown to the President during the summit.
“Kahit napepeke ang data, kailangang imbestigahan,” Antonino said, adding that the President agreed that there is a need to investigate.
Monitoring committee
In his address, the President said the government is studying the formation of a Mindanao Power Monitoring Committee to be chaired by MinDA, with representatives from the Department of Energy, NAPOCOR, the National Grid Corporation of the Philippines, and others from civil society, electric cooperatives, and the business sector.
It is to make sure that price increases of electricity are fair even as the President said people in Mindanao should expect to “pay a little more” for a stable supply of energy.
Meanqhile, Aquino may be a victim of misinformation or disinformation on the real situation of Mindanao’s power problem, otherwise he would consider maintaining government control of the Agus-Pulangi Hydro Complex (APHC).
This was the common reaction of some of the region’s leaders–who strongly oppose the privatization of the hydro power plants in Mindanao–to the President’s message during the power summit last Friday.
Antonino, who maintains her opposition to the privatization of hydro power plants, said the President lacks information and that energy Secretary Jose Rene Almendras admitted it, particularly on the data submitted to the national central office.
Representative Teddy Casiño said the President is misinformed about the privatization issue in Mindanaom hence his strong resistance to the call to stop privatization of the Agus and Pulangi hydro plants.
“Ang dating sa akin parang hindi siya nakinig. Parang buo na yung idea niya. Sarado na ang kanyang isip,” he told reporters.
Immediately after the summit, Casiño expressed dismay over the President’s action, saying, “I would have wanted more openness from the President, more discussion of ideas than opposing the point. Gusto ko sana napalabas pa niya yung mga actual suggestions ng mga tao dito rather than nagdebate.”
Before reading his speech, Aquino said EPIRA has not worked in Mindanao as it had exempted the Agus and Pulangi hydro plants from privatization for10 years.
Addressing President Aquino that EPIRA has directly affected Mindanao, Sergio Dagooc, president of the Association of Mindanao Rural Electric Cooperatives, (AMRECO) Inc. said only the hydro plants were exempted but not the power barges.
He told the President that the EPIRA was the reason for privatizing the two 200MW power barges, now owned by the Thermal Marine, Inc., causing the hike of power rates in Mindanao.
“In fairness kay Pangulo, he’s making his response based sa mga feedbacks sa energy family and some legislators. Bigyan na lang natin ng pagkakataon si Presidente pag aralan naman yung mga proposal natin at mga justification natin vis-a-vis doon sa previous data/information na nakuha niya and we will wait,” Dagooc told reporters after the summit.
Casiño said the President’s mind appeared to be closed as he is pursuing the policy of privatization of our power assets.
“Sa isang summit you’re not supposed to debate eh or argue. Ang importante dito, palabasin mo lahat ng idea and then i-didigest ito pero parang ang dating, ang Presidente ang nakipagdebate,” he said.
Casino hopes that all the efforts at the summit will not be put to waste, and that the President would study all the presentations submitted by different sectors.
Might consider
Meanwhile, Antonino said the President is pursuing privatization because there is a law, he just cannot really say it.
Thus, Congress has the capacity to do something about the law.
Representative Daisy Fuentes hoped that the President would consider not privatizing the hydro plants by the time Congress can present to him the paper work.
“He’s asking for numbers kung makakatulong ba yan, mababayaran ba ang utang, masusustain ba ninyo. I think if we can prove it to him, possible. Ang gagawin ng DOE (Department of Energy) magkacounter sila na mali yang number
Antonino said others are saying the hydro plants are losing, but, “No. It’s making money. Internally, we can generate the funds to fix the thing.”
She mentioned that DOE Secretary Jose Rene Almendras also said that the APHC is a net earner.
“Kung maprove siguro namin na it can fix itself, na makabayad pa sa utang, na marerehabilitate na hindi na hihingi sa national, makukumbinse natin siya,” Fuentes said.
Casiño pointed out that the hydro plants were not rehabilitated earlier than the power crisis occurred because the government was planning to sell them anyway.
“Kami po sa Kongreso may malakas na resolution opposing the privatization of Pulangi. Hopefully, mahabol pa natin itong apparently fixed position ng Pangulo,” he said.
Antonino said the rehabilitation of AHPC may only cost less than P5 billion.
“If in one year’s time, the complex will earn around P7 billion, it can fund its own rehabilitation with one year income. Lalaki na ang capacity nya, of course mas lalaki pa ang income,” she added.
