Epira’s ‘Reign of Error’ DIE HARD III Herman Tiu Laurel 02/22/2010

Epira’s ‘Reign of Error’ DIE HARD III Herman Tiu Laurel 02/22/2010 “The error of one moment becomes the sorrow of a whole life.” — Chinese proverb It is time the Filipino nation accepted the mistake that was Edsa II. It is time that people realized the many evils it had spawned, including allowing the oligarchs, corrupt politicians, and the foreign chambers of commerce to fast track a key legislation that has horribly distorted the social-economic character of our society. The Electric Power Industry Reform Act (Epira), which privatized, deregulated, and “marketized” electricity generation and distribution, ran counter to the fact that the power industry had been capitalized by the national government and the people with their taxes and electricity bills payments for well over 20 years. Merely on the promise of breaking up monopolies and promoting competition, efficiency, and low rates, the power sector was broken up and privatized aggressively, beginning in 2001. Nine years later, only rolling brownouts and the highest power rates in Asia have all but greeted us. Energy authorities blame the present power supply crisis on the El Niño-induced drought, and they have announced “unavoidable” rate increases for the duration of the water shortage. But a closer look at the series of events accompanying the present crisis should dispel any notion that natural causes are to blame. First of all, there is no shortage of capacity. The following are the official facts about installed capacities vis-à-vis peak demand culled by the Freedom from Debt Coalition (FDC) from official government data: (a) Luzon — 12,172 megawatts (MW) installed capacity versus 6,674 MW peak demand; (b) Visayas — 1,834 MW versus 1,176 MW; (c) Mindanao — 1,933 MW versus 1,204 MW (the only area where installed capacity is lower than peak demand; which is then acted upon by the transmission grid in redirecting surplus energy to Mindanao whenever necessary). (b) But obviously, the transmission grid plans are seriously flawed. Secondly, even with a drought, there should be no reason for rolling power outages in Luzon. With the excess installed capacity and high rate hikes often approved by the Energy Regulatory Commission (ERC), anyone capable of paying should still get electricity. So why is Energy Secretary Angelo Reyes warning on and on about brownouts? Is there something fishy with this constant fear-mongering? There is, however, an angle that dawned on us when we discussed this issue with the FDC: The installed capacities reported by the independent power producers are overstated. This is apparently for the purpose of tapping into the purchased power agreements (PPA) that guarantees payment for all their installed capacities even when not used. So now, only God knows how much of the installed capacities claimed by the IPPs are real, as there has been no credible audit of this EVER! In looking at the other aspects of this present crisis, such as the one in Mindanao where it was claimed that four power plants were shut down at the same time for maintenance work, we ask: Isn’t it obvious that a power shortfall would ensue given that installed capacity is already below peak demand? This is so fundamental an error that only an idiot would not smell a rat burning somewhere in the circuits. Lastly, we also shouldn’t miss the problems reported at the National Grid Corporation of the Philippines (NGCP), the new operator of what used to be the government-run TransCo. Our source reported that Serge Osmeña, senatorial candidate, complained about NGCP’s management decisions still being referred to China. Well, we really can’t tell if this is just bellyaching by a losing party or a truthful assessment of the management situation there because it is true that the NGCP, a consortium of China State Grid and Monte Oro Corp., packaged with the blessings of the Carlyle Group, is closely identified with FVR’s people and a certain presidential crony. But the bottom line is that our energy security and independence have been severely compromised as this strategic sector, now in foreign hands, is absolutely endangered. During his term, President Joseph Estrada heeded the advice of Sen. Juan Ponce Enrile not to approve the Epira. Its proponents, which included the all powerful Mirant backed by the US oligarchs, instigated Edsa II with this law in mind. Yes, Virginia: The stakes in the energy sector are that high that they’ll initiate a coup, in the same way that they did it for bananas in the “banana republics.” It’s time we initiated a structural revolution in the energy sector through re-nationalization. It’s time that we let those blood-suckers wait it out in the same way they have been acquiring our state assets — by installment for 25 years — and only if these payments are still necessary. Let’s charge them the taxes they avoided all these years after we’ve audited their installed capacities, and deduct the taxes we paid for past Napocor debts which they had forced onto our shoulders. Let us now correct the errors of 2001! As Marcus Tullius Cicero once said, “Any man can make mistakes, but only an idiot persists in his error.” (Tune in to 1098AM, Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 p.m. to 7 p.m.; Global News Network, Destiny Cable Channel 21, Talk News TV, Tuesday, 8 p.m. to 9 p.m. on “Kill Bill: Dark Power Rising”; also visit http://hermantiulaurel.blogspot.com) (Reprinted with permission from Mr. Herman Tiu Laurel) Source:  The Daily Tribune ALTERNATE URL: http://www.classicposters.com/commentary/20100222com4.html

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