Compromise
Bill Compromises National Interests
From the Akbayan
Web site
The latest (May
4) Power Bill touted by the Arroyo government does NOT differ much
from the Erap Power Bill (February version). No amount of hype can
hide this fact.
Both bills:
1) condone existing
anomalous and onerous contracts with independent power producers (IPPs)
which have resulted in electricity rates being 30% more expensive;
it is these contracts that force consumers the Power Purchase Adjustment
(PPA), which ranges from 200-1,000 pesos per household.
2) do not have
an absolute ban on cross-ownership. This means that generation and
distribution companies can still be owned by a single company or subsidiaries
of a larger corporate entity. Bilateral contracts between sister companies
are supposedly limited in the Osmena bill but there are no explicit
regulatory arrangements. This means that a monopoly can still occur
in the power sector.
3) allow distribution
utilities to recover their stranded costs from their expensive contracts
with their sister companies and pass these costs on to the consumer.
Meralco, for instance, is not compelled to give up its contracts with
its sister companies in the generation sector which sold electricity
at a higher price than Napocor.
How can these
provisions bring down the cost of electricity? How can President Arroyo
claim that her new pet bill can "reform" the power industry and make
it more efficient?
It appears that
the Arroyo government is in a hurry to pass whatever bill (Osmena
bill or whatever compromise bill is arrived at in this special session)
simply for the release of the Asian Development Bank (ADB) and World
Bank money. If so, it should stop cloaking its motives in all that
"reform" rhetoric.
If, on the other
hand, President Arroyo really wants "reform", then she should push
Congress to pass the Camacho bill. Though many civil society groups
believe the Camacho version to be short of a genuine reform bill in
many respects, it is far more acceptable than this "compromise" Osmena
bill which simply embodies the interests of local power corporations.
Since our representative
Etta Rosales exposed the payola scam last year, Akbayan has always
taken the stand against haphazard and unjust privatization schemes
that betray the interests of Filipino consumers. We take the same
stand now. Akbayan does not oppose the privatization of Napocor per
se. What we oppose is the skewed and dubious privatization process
stipulated in the two Power Bills that have gone through Congress
so far. This is why we, together with other groups, have worked hard
to study each piece of legislation, examine the provisions and their
impact over the long-term.
Akbayan is convinced
that this "compromise" bill will truly compromise the interests of
Filipino consumers. That is why Akbayan has always proposed thorough
and rigorous study of all prospective privatization schemes and potential
alternatives that are workable and equitable for consumers. Akbayan,
too, wants cheaper electricity rates, especially for the poor who
can barely afford other basic necessities. Akbayan wants genuine reform
of inefficient, corrupt and non-performing government corporations.
Akbayan thus challenges
President Arroyo to VETO THE OSMENA BILL if it passes in Congress.
Alternatively, we call for a postponement of any legislative process
to pass the current Power Bill.
Should deliberations
be taken up by the next Congress, Akbayan has a better, more feasible
and more equitable alternative than the Camacho bill. We propose the
adoption of the BOLIVIAN SOLUTION to the privatization of Napocor.
In this scheme, consumers co-own the power-generation corporation
(50-50), and oversee its management through a pension fund institution
(something like the SSS). It worked in Bolivia when all other models
(UK and California) failed. Why shouldn't it work here, especially
since we already pay equity costs through the PPA? We actually own
Napocor in part!
If President Arroyo
really wants an alternative, there it is. She should show political
will and explore it.
