Unabated power piracy

DIE HARD III
Herman Tiu Laurel
12/23/2005



In the December 19, 2005 issue of one daily Intel Corporation, the world’s largest technology company, explained in a report why the Philippines has lost out on $ 500 million (P27 billion) in potential exports and over 11,000 jobs from its investments which instead went to China, or to Thailand, Singapore, Malaysia and India. The report quoting Intel said, “Among Intel’s sites in Asia, the Philippines has the highest electricity rate which the company said is a major disincentive to growth.” The Philippine lagged at 9th place among FDI destinations in Asia since 1998, with only $680-M while others attained $3-4-B.

Another daily headlined the whole week the Arroyo-Napocor vs. Meralco word war over the latter’s penalties supply contract violations with Napocor signed in 1994. In my last column I explained that the issue raised before the Energy Regulatory Commission puts the amount at P 20-B after talks between Napocor and Meralco discounted P 8-B from an original amount of P 28-B for alleged Napocor non-delivery of transmission lines to Meralco. However, as Nasecor (National Association of Electricity Consumers for Reforms) chair Pete Ilagan points out the amount is about P 52-B when interest and other charges are counted.

The truth is, under instructions from Malacañang Napocor agreed to the settlement plan with Meralco on the latter’s unilateral abrogation of 50% of the supply contract and forged a joint petition charge the penalties (reduced to P 20-B, as explained above) to electricity consumers – you and me, dear reader, who never had anything to do with that supply contract!

The series of headlines in the Inquirer on the matter would suggest to the public that Gloria is finally standing up to Meralco and the Lopezes. Spare me, please! The two have always been in conspiracy to defraud the public using energy policies and rates, in connivance with Gloria’s ICC (Investment Coordinating Council) and her Board of International Advisers where power thief Mirant and Shylock finance baron Greenberg sit as puppet masters. Meralco had a press conference Wednesday and lo and behold, ICC master Washington Sycip sat beside Manolo Lopez of Meralco and the other minions of the World Bank like Christian Monsod. That conspiracy has not ceased.

Gloria’s media handlers, wary of the whammies that will hit the public and trigger tremendous backlash, not the least of which is the 20% increase in the EVAT on electricity, is preparing “red herrings” to divert public attention and give Gloria pogi points. As usual, the Inquirer is handmaiden to these media spins; not surprising, the Inquirer owners and editors are part and parcel of the Edsa Dos power grab from the elected leader of the country President Joseph E. Estrada who stood in the way of the oligarchy’s complete control of the economy. Its latest headline on the power issue scuffle - “Palace: Arroyo is not afraid of Lopezes”.

It must be stressed that Gloria is behind the compromise with the Lopezes to transfer the penalties to the electricity consumers, something we have exposed with other groups like Nasecor and the FDC (Freedom from Debt Coalition) since 2003. Gloria has been the power piracy queen ever since she installed herself in Malacañang with the aid of the elite power wielders like Lopez, Aboitiz, Alcantaras, and now the Ayala also want to join the club after seizing the power and telecom sectors. After a week of controversy neither Malacañang nor Napocor dares to explain why they agreed to jointly petition for transferring the Lopezes’ penalities to the electricity consumer.

Some speculate that Gloria is hitting back at the Lopezes for ABS-CBN and its cable channel ANC’s increased airing of critical reports; but that says nothing about Gloria’s spine vis-à-vis Meralco because Gloria simply cannot sequester Meralco with the representative of the Washington Consensus there. Gloria’s not rattling a saber, only a baby’s rattle. Only a government fully supported by the people and by principles can nationalize the power industry against the forces of the oligarchy. What is, however, clear is that a war to control the spoils in the energy sector is raging amongst the factions.

Malacañang’s E.O. 474 creating the Philippine Strategic Oil, Gas, Energy Resources and Power Infrastructure Office, usurping all the functions of the energy department, is a Gloria and the First Gentleman’s move to monopolize all the looting from the power privatizations in 2006 – such as the P 5-trillion Transco privatization, among others. It is also clear that to accelerate the privatization of Napocor’s remaining assets EPIRA revisions will be speeded to respond to what Neda Dir. Gen. Augusto Sanchez said: “…potential buyers still have no assurance they can sell the electricity generated by the plants.” They want to repeat the PPA anomaly!

The power pirates are feasting on Filipino electricity consumers everywhere. In Iloilo blackouts are becoming frequent since Atty. Roming Gerochi won a court case forcing power companies there to remove the PPA. Now the power pirates are hitting back with blackouts: reports from Iloilo say “… consumer groups accused Peco and the Mirant-owned PPC of “exploiting and abusing their market power over the consumers.” Meanwhile, newspapers report “Lopez pre-IPO bonanza” of the First Generation Holdings Corp. is still two months away, but patriarch Oscar Lopez is already on a profit-taking mode from its vigorous parent company.

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