| DIE HARD III |
 |
| Herman Tiu Laurel |
04/02/2012
Jojo Borja, one of the major owners of Iligan Light and Power who is
at the forefront of the crusade to expose the anomalies of the power
privatization caper, reports that a number of his Mindanao colleagues
got wind of broadcast interviews where Serge Osmea called for the
privatization of the Agus-Pulangi hydroelectric complex. As such
longstanding anomalies are a direct result of the Electric Power
Industry Reform Act (Epira), a law that gave rise to the Energy
Regulatory Commission (ERC) and Power Sector Assets and Liabilities
Management (Psalm) Corp., one of Borjas sources, a Psalm executive,
naturally doesnt want to be named.
Mindanao is ultra-sensitive to
any suggestion of privatizing its treasure that is the Agus-Pulangi
complex. As the people there know that greedy and dirty hands are just
waiting to grab this wonder of Mindanao away from them, a mere mention
of it would be absolutely revolting.
According to Freedom from
Debt Coalition (FDC)s Wilson Fortaleza, who just came from a National
Power Corp. (Napocor) Union-sponsored review of Agus-Pulangi, the
hydroelectric plants there (which started operations in 1953) are by now
fully depreciated. Thus, the electricity that is produced is less than
P0.01 per kilowatt-hour (kWh).
It is easy to understand Mindanaos
aversion to privatization. During the past weeks power crisis in
Mindanao, some prominent local officials have cited the privatization of
Mt. Apo Geothermal to a Lopez company as an issue. Geothermal energy,
according to the Center for Energy and Climate Solutions, should only
cost anywhere between $0.01 to $0.05/kWh, or from P0.42 to P2.00/kWh on
todays exchange rate. But North Cotabato Gov. Emilou Talio-Mendoza and
General Santos City Mayor Darlene Antonino-Custodio assert that the
private Lopez firm charges a walloping P14/kWh of electricity.
In
making his case against government-run power, Senator Osmea said in a
March 29 interview that Because government tries to lower the price of
electricity a president can order power rates to be lowered to become
popular. The case of Mt. Apo Geothermal, however, only shows that
privatization has resulted in the population being blackmailed with
price gouging rates while the oligarchs sit back and watch the regions
economy face disaster without concern.
If we go by Osmeas logic,
then government must not and should not be concerned about the peoples
welfare; government should make only the power oligarchs interests
topmost in its priorities; and government need not bother with the
welfare of the national economy where industries that have to bear the
highest power cost in Asia can no longer compete with other countries.
Mindanao
Development Authority (MinDA) chief Lualhati Antonino expressed a
deeper suspicion: That the privatized transmission company now called
the National Grid Corp. of the Philippines (NGCP) is creating this power
crisis to force a privatization of the Agus-Pulangi on the pretext that
government has failed.
The likely scenario is that, upon
privatization, the Agus-Pulangis less than P0.01/kWh electricity will be
sold to Luzon and Visayas for P5.00/kWh when the NGCP lays the
submarine cables to link the Mindanao grid back to the islands
northward.
Antonino states: I am sorry to say that based on my
studies and the researches of my office, I think NGCP is fooling us
Where are the power generated by the hydroelectric power generators?... I
dont believe it. NGCP is creating an artificial shortage. Niloloko
nila tayo (They are fooling us)
International observers today
confirm what the Executive Intelligence Review (EIR) reported years ago:
Under President Corazon Aquino, no new energy generating capacity was
added (and) since the 1993 Ramos emergency measures, the cumulative
amount of loot that these forces took out of Napocor (totaled) an
estimated $2.5 billion to $4 billion, if not more (As this was estimated
years ago, it should now stand at $10 billion.)
To continue, the
EIR explains (in its article, The Lessons of California and Brazil) that
Companies such as Enron, Reliant Energy bid up the price of electricity
on the California Electricity Spot Market (like our own Wholesale
Electricity Spot Market or Wesm) (driving) up the average price (by)
more than a 1,000 percent. It further states that The Philippines Power
Reform Bill replicates all the key destructive features of California.
Malacaang
resident Noynoyer, PeNoy Aquino, has not offered any solution to the
Mindanaoans pleas, except that they should expect contracting power
barges that would result in higher electricity rates, saying, You will
have to share the burden But would the people and consumers of Mindanao
share in the profit, too? No way: Thats because in PeNoys world, profits
are only for the oligarchs while the entire burden should be for the
consumers.
With the Agus-Pulangi still in public hands, all the
people are able to share in the bounties flowing from it. If only
government ceases to be captive to the oligarchy, the bounties from
renewable power in Mindanao and everywhere in the Philippines can be
multiplied a hundred fold. But, as our sad experience with the Electric
Power Industry Reform Act (Epira) tells us, we, the people, must now
wait no longer in junking that privatization law to restore the public
sectors control of our countrys economic affairs, particularly
electricity generation and distribution. Once this is achieved,
government can proceed to prioritize more mini and micro-hydro and
geothermal development instead of fossil fuel energy.
We shall end
with the latest confirmation of the Philippines highest power cost in
Asia from the 2011 comparative survey of the Japan External Trade
Organization: Manila at $0.23/kWh; Tokyo and Singapore at $0.20/kWh;
Sydney at $0.19/kWh; Colombo at $0.18/kWh; Mumbai at $0.16/kWh; Phnom
Penh at $0.15/kWh; Hong Kong at $0.14/kWh; Auckland and Taipei at
$0.12/kWh; Kuala Lumpur and Karachi at $0.11/kWh; Shenzhen and Chennai
at $0.10/kWh; and Jakarta, Shanghai, Guangzhou, and New Delhi at
$0.09/kWh.
The survey also confirms what our colleague Butch Junia
has always stressed: That contrary to claims by Osmea of government
subsidizing power rates, the reason Philippine commercial/industrial
rates are not the highest in Asia yet is that these are subsidized by
residential consumers, who, even while consuming only 30 percent of the
Manila Electric Co.s distributed electricity, contribute to 67 percent
of the power companys income by shouldering incredibly high and lopsided
rates. Thats subsidy for you, Serge!
(Tune in to 1098AM, dwAD,
Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m.; watch
Destiny Cable GNNs HTL edition of Talk News TV, Saturdays, 8:15 to 9
p.m., with replay at 11:15 p.m., after Lent, on Mindanao power
blackmail? Part II; visit http://newkatipunero.blogspot.com for our
articles plus TV and radio archives)
(Reprinted with permission from Mr. Herman Tiu-Laurel)
Source: The Daily Tribune
URL:
http://www.tribuneonline.org/commentary/20120402com5.html