Consumers Domain
By Ian Seruelo

Tidbits of electric issues

" Always aim at complete harmony of thought and word and deed. Always aim at purifying your thoughts and everything will be well. "

-Mahatma Gandhi

For the past weeks, there have been several happenings related to the electric power issue. Indeed electricity power is such an important commodity and such a big industry that it commands so much attention.

So now I'm writing about some tidbits of "electric" issues. "Electric" - not only that it refers to electric power but also because these are exciting and stimulating, and yes electrifying issues!

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First I would like to start with the issue related to the proposed entry of coal plants here in Iloilo. Perhaps, one way or the other, you have read about this column's position on the matter. As most people know, Gov. Tupas is the main promoter of the dirty coal project here in the island.

And as we all know, this is also the same governor who is deeply mired in controversial dealings and corruption issues related to the airport project in Cabatuan. Hmm, it seems that this governor have a fetish for multi-million projects. Tsk, tsk, election is still far away and some trapos already have a headstart in amassing campaign funds.

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Next, this column would like to give some comments and reaction to the article of my columnist neighbor that appeared on this paper's mid-april issue. He is a friend actually, being a fellow-writer and belonging to the same publication at that.

The said article labeled those who opposed the dirty coal-plant project "a handful of leftist propagandists and some overacting clergymen." The article also called people who advocate against environmentally hazardous projects as "saboteurs", "hypocrites" and "extortionists".

Well I will leave the defending of the clergymen to the Church for I know they can do better. Being part of the social movement and civil society groups, let me just give a short defense for the NGO and PO community (non-governmental organizations and people's organizations) who are opposed to the coal plant project. Though I refuse to dwell on the labels made.

This columnist friend of mine works at the provincial capitol and is a close ally of the governor. That is why we can't blame him if he amply complements the governor and blindly attacks all of his boss' critics.

Maybe this friend of mine can check with the provincial capitol and check the names of NGO's, POs and other civil society groups who are part of the provincial government's working committees. Most likely, he will see many familiar names there who are also the same group of people opposing the coal-project.

Secondly, there should at least be an acknowledgement from the writer that worldwide - from US, to Asia and Europe - there is a growing opposition to coal-plants because of voluminous documentation of its ill effects to the environment and health. He should at least have the honesty to accept that the opposition of such groups is grounded.

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But you know what - if my columnist friend is referring to the Bayan group, then I may partially agree. Remember during the protest against KEPCO's proposed 100MW coal-plant in Banate last year, which was also endorsed by Tupas. Bayan opposed the project but when election time came they openly endorsed Tupas for Governor in exchange for financial support!

Well, Bayan said, Tupas signed a manifesto-of-sorts with them saying if he wins he will not support such kind of projects. Now that Tupas is endorsing the coal-plant projects of Mirant and DM Consunji you can see Bayan protesting once again but is silent on that manifesto that they supposedly signed with the governor!

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Now let me go to the assertion of the same writer colleague of mine that the matter about energy or electric power "is the domain of the DoE experts."

"They (Mirant) are not stupid to risk their investment in a potentially disastrous project such as the coal-fired power plant which has been certified by no less than the experts in the energy sector," he added.

If the DoE or even Napocor are the experts in the power industry, why is the same industry in such a bad state? I mean the irony of it all is that the government is supposedly the expert on this but a little more than 10 years since the massive power shortage has been "solved" in mid-1990s and here we are again facing a "crisis" situation! That's according to the experts.

Look at it this way - the Department of Finance (DoF) is supposed to be the expert in finance and economy, right? And Pres. Arroyo is supposed to be an expert in the field of economy, am I right again? But look at the state of Philippine economy now?

It will also be helpful to my colleague and other stakeholders on this issue to check the dark background of Mirant. This company that proposes to build a coal-plant in Barotac Viejo is the same company that has been involved in market manipulation, anomalous accounting practice and corruption cases internationally. Further Mirant's two power plants in the country has contracts that contain the most unfair and grossly disadvantageous provisions to consumers and the government. Well that's courtesy of another corrupt patron, no other than Former President Ramos.

Yes, Mirant is not stupid. Indeed it is making a fool out of us, Filipinos.

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Now let me challenge my writer friend and Gov. Tupas if indeed they are sincere enough about providing a solution to the power needs of the region. Let me quote part of the statement of the Visayas For Renewable Energy (V-FREE).

"In this context, we find it unacceptable, therefore, that DOE prescribes dirty coal plants for the Visayas and we will continue to vigorously oppose their entry. We cannot be intimidated nor held hostage by baseless threats of looming black-outs as this only encourage hasty and flawed decisions."

"We match with action our words. Our desire for meaningful participation is concretely translated in the holding of a multi-stakeholders power development and planning as opposed to DOE's centralized planning. We deplore that DOE declined participation despite our formal invitations, and despite its earlier indication to participate."

"As a gesture of good will and good faith, we are giving the new DOE Secretary, Raphael Perpetuo Lotilla, a fresh start by extending once more the invitation for the department to formally collaborate with us as we expand the multi-stakeholders power development and planning for the entire Visayas. We have done our part as constituents and stakeholders. We expect our government to answer our call."

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Lastly, it pains me that the Energy Regulatory Commission ( ERC) has approved another round of power rate increase. Last week, the ERC released its final decision increasing National Power Corporation's (Napocor) generation rate by P0.056 per kWh on top of the previous P0.9798 per kWh provisional increase. Napocor's rate hike took effect within this week, pushing generation rates up to P1.035 per kWh.

According to the ERC this is needed to improve the financial situation of Napocor mainly for it to be able to pay off its obligations. Tsk, tsk, this problem will never end until the government cancels the onerous contracts with Independent Power Producers (IPPs) like the contract with Mirant's power plants.

Napocor is bleeding dry. It is the consumers and the taxpayers who are made to suffer. But the IPPs (especially Mirant!) are laughing their way to the bank!

(For comments and suggestions, please email ianseruelo@yahoo.com or send SMS to 0919-348-6337.)