Wednesday, August 24, 2011

MPIC, ERC, et al.: Economic sabotage

CONSUMERS DEMAND!
Herman Tiu Laurel
8/22-24/2011



High winds and turbulent tides are lashing our Philippine economy.

As the main engine of the world economy buckles, with the US financial system reeling from its asymmetrically exploding fiscal crisis, Europe staggers amidst socio-economic upheaval while the Japanese nation’s risen sun dims in the dark cloud of its tectonic and nuclear disaster.

Inevitably, local business news reported that “Exports (are) down 10.2 percent in June,” from $4.557 to $4.092 billion year-on-year, or a loss of almost P25.2 billion.

Sustaining Losses
On top of that, the Philippine economy in general -- including our exporters, as well as our largest dollar-earning sectors, the OFWs and BPOs -- is sustaining many losses from the appreciation of our currency.

Every peso appreciation to the dollar costs OFWs a least a billion and BPOs probably close to that amount.

From the way the global situation looks, it will be even worse in the next two months.

But while all these setbacks are hitting the Philippine economy, Filipino entrepreneurs, workers, and consumers like tons of bricks in every waking hour, guess what, the newspapers have reported that a Big Business conglomerate such as Metro Pacific Investments Corp. (MPIC) expects core profits to grow nearly 25 percent, with 31 percent coming from its Manila Electric Co. (Meralco) operations which have been reaping up to 87 percent in profit growth each year, from 2008 to 2010.

Why, MPIC CEO Manuel V. Pangilinan even expects its power unit’s profits to grow “modestly” to P14 billion in 2011, which it seems ready to exceed by the time the year ends, judging from it profits midway.

How did the power company achieve such a feat and continue this bountiful harvest for MPIC?

New Pac-Man
Newspaper reports state that in the first half of 2011, “Meralco’s core net income increased 35 percent to P7.82 billion on higher distribution tariffs despite the slightly lower volume of electricity sold because of the cooler weather and lower industrial consumption of power as a result of the disruption caused by the March earthquake in Japan.”

So, Meralco sold less electricity but got higher profits.

Now isn’t that one business everyone should envy?

The other major component of MPIC’s profit this year -- which was a surprise even to me despite my constant monitoring of the utilities sector -- is from water.

With the control of Maynilad Water Service Inc. (MWSI) by MPIC, better known as the “Manny Pangilinan Infection of Companies,” a new Pac-Man has indeed arrived! MWSI contributed 41 percent of MPIC’s profits -- again on higher rates plus tax holidays.

The next major unit contributing P720 million or 21 percent of MPIC’s profits is its infrastructure arm, Metro Pacific Tollways Corp. (MPTC).

Its higher rates are, of course, the culprit again.

eVAT for Motorists
Note that this does not yet include the 12 percent eVAT soon to be slapped on hapless motorists due to the Supreme Court (SC)’s recent decision sustaining the Bureau of Internal Revenue (BIR)’s imposition of said tax.

Overall, though, of all the utility services under the MPIC empire, it’s still power that draws the greatest attention due to its far-reaching effects on the most number of people and enterprises.

Meralco’s “highest power cost in Asia,” as stated in a February study by the Philippine Exporters’ Confederation (PEC) and Employers Confederation of the Philippines (ECOP) entitled, “The Impact of High Energy Costs on Exports,” which quotes an October 2010 study by independent think tank, International Energy Consultants, was described as such: “with average retail rate of electricity of 18.1 US cents per kilowatt/hour… the Philippines… has eased out Japan at the top… at 17.9 US cents per kilowatt/hour.”

The report further stated: “The high cost of electricity in the Philippines was traced by the group to the fact that all costs --from producing power to distribution and taxes-- are passed on to consumers.

Besides, the Philippines is the only country in the region that has privatized its electric power sector and has no state subsidy on rates.

Power Rates Mount
The (2010) study likewise noted that domestic natural gas coming from the Malampaya gas deposits in offshore Palawan that fuels three of the biggest power plants in Luzon (has) been priced so high. It has been suggested that the Philippine government renegotiate the Malampaya contract to bring down the cost of natural gas.”

Meanwhile, other power rate hikes have been mounting this past month: First, the Supreme Court sided with both the Energy Regulatory Commission (ERC) and Meralco on a 2009 P0.29/kWh rate hike petition on purely technical procedural grounds, making everyone wonder whether P-Noy’s first appointee there, Justice Lourdes Sereno, appreciates the substantive issue of Salus populi est suprema lex (the welfare of the people is the supreme law) as the ponente in the case.

Sereno even faulted consumers, saying, “they should be more vigilant in protecting their rights,” but does not consider that Meralco has hundreds of millions to pay for lawyers (with literally two dozens appearing on its behalf), not to mention P480 million for “regulatory liaison,” P72 million for foreign consultants, ad nausea, all charged to its customers. Consumer advocates, on the other hand, have to pay for their own fares; solicit volunteer legal representation; and plod through deliberately obfuscated ERC rules and rulings.

So how in heaven’s name can Sereno still claim that consumers have been remiss?

Bleeding Heart
Second, within the same month, Congress has extended the lifeline rate to consumers using 99 kWh/month or less of electricity but takes this doleout from paying consumers who use up to 100 kWh/month upwards, most of whom are equally poor; this, despite the fact that a bleeding heart such as House Energy Committee chair Rep. Dina Abad does not even shell out a cent from her P380-million pork barrel.

Then, we have the Energy Regulatory Commission (ERC)’s approval of a P4.5-billion National Power Corp. (Napocor) petition for increase of P0.07/kWh starting August to cover for “losses” from its 2003 to 2009 missionary electrification operations.

But that’s not all: In the same month again, Meralco announces an 8.5 centavos per kWh generation rate hike from the WESM (Wholesale Electricity Spot Market)’s share of power, which went up due to Malampaya Gas’ price hike (increasing WESM rates from P1.29/kWh to a gobsmacking P9.70/kWh, when the average regular generation rate is around P5.00/kWh).

Proponents of the wretched 10-year-old EPIRA (Electric Power Industry Reform Act) claim that WESM will bring down rates by competition; but it’s plain to see that it has more than doubled charges in the long run.

Indeed, we have so many fronts to watch out for in the power sector.

Murderous Exactions
In Mindanao alone, we have the Aboitizes and Alcantaras who are waiting to pounce on the privatization of the Agus-Pulangi hydroelectric complexes that supply the cheapest power in the country.

Even though they have so far been frustrated, the Alcantara group, through Joseph C. Nocos, Sarangani Energy Corp. vice-president for business development, part of the Alsons Consolidated Resources Corp., has proposed that authorities “privatize the future output of the power plants much like an independent power producer administrator contract but have the government keep control over the power plants.” Sneaky, sneaky...

Last, as if you are not yet dizzied by all the convoluted crap, the headline of one Aug. 1 report even has this proposal from another EPIRA body, the Philippine Electricity Market Corp. (PEMC): “Higher fee sought for power mart… to increase by 17 percent fees in the Wholesale Electricity Spot Market (WESM) it operates… (for a) rate of P0.0168/kWh for 2011…”

With all these murderous exactions on privatized power and public services, can anyone expect our people and economy to survive?

Hope for Justice
We thus ask of the last bastion of the people’s hope for justice, the Supreme Court, which defended public welfare through its 2003 decisions against the ERC and Meralco: Has it now been captured too?

We persist in our fight because we know the Filipino consumer can only take so much.

Hopefully, the next power and public utility hikes will serve as the final spark to light the prairie fire.

(Tune in to Radyo OpinYon, Monday to Friday, 5 to 6 p.m., andSulo ng Pilipino, Monday, Wednesday, and Friday, 6 to 7 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com for our articles plus select radio and GNN shows)

Ghosts of assassinations, bombings, coups, demos, EDSA's, elections, fraud, rebellions, & seditions

YESTERDAY, TODAY & TOMORROW
Linggoy Alcuaz
8/22-24/2011



Don’t ever make the mistake of inviting me to any of the above. I’m a joiner and a perennial supporter. And if nobody else wants to lead, I will always be available to do so. I might just honor your invitation.

Then you will have to feed my appetite for activism, adventure, advocacy, danger, defeat, excitement, helping lost causes and “talunans,” history, love of country and politics, passion to do good and bad, patriotism, romance, success, victory.

Seven years ago (around FPJ’s August 20, 2004 birthday), fellow OpinYon columnist Herman “Ka Mentong” Tiu Laurel invited me to have lunch with Erap in his Tanay farm resort. Accepting that one lunch invitation led to my having lunch with Erap in Tanay once a week for the next three years and two months.

And the rest of the week, I had lunch with Erap’s younger brother, Jesse, and Erap’s battle staff, at 409 Shaw Boulevard.

When Erap was released on Friday, October 26, 2007, it became daily weekday lunches at Erap’s clubhouse at 1 Polk Street, North Greenhills, San Juan.

More accurately, we would assemble at the office at # 15 Hayes Street and walk over to the clubhouse next door.

A Yellow Ghost
The day before Ondoy, Friday, September 25, the yellow ghosts made me say goodbye to Erap. That farewell showed me that there is no more gracious gentleman in the world than Erap.

Lunch with Erap had become my social, political and business routine for five years.

I gave that up for a Noynoy that I did not believe was prepared for the presidency. I had campaigned and lobbied from August 8 to September 9, 2009 for him to run for Vice President instead.

When my enlightened efforts failed, I joined the unenlightened mob and supported Noynoy for President. “Bahala na kung anong mangyari!”

Not just one, but several invitations plucked me away from Erap and thrust me back into the mess that the Aquino–Cojuangco clan is.

On Saturday, September 11, former QC Mayor Brigido “Jun” Simon hosted a small dinner for his friends and political colleagues.

Former QC District 2 Congressman Tony Aquino was to deliver the pitch for Noynoy. He would be assisted by former QC District I Councilor Emil Tamayo. At the end of the meeting, Tony invited Jun and me to a meeting of the 1987-92 batch of Congressmen at the BMW coffee shop along E. Rodriguez/C-5 in Libis, QC on Tuesday, September 14.

On Friday, September 17, I was invited to a reorganization meeting at the AIM lounge of the old FPJ Movement (2003) now to be called Sulong NOYNOY.

Later, it would be renamed Sulong NOY-MAR. Its chairman was Manny Portes.

Noynoy for VP
Finally, on Saturday, September 18, former Caloocan City Congressman and NAIAA General Manager Romeo Santos invited me to the birthday party of former Tarlac Congressman Jose “Peping” S. Cojuangco, Jr.. There, I managed to introduce myself to Noynoy as the campaign manager of the “Noynoy for Vice President Movement”.

With so many colleagues and friends from past battles, I became comfortable and confident with the movement and the organizations supporting Noynoy. I forgot that I was not confident and comfortable with the candidate for the position he was running for.

Way back in 1997, the same thing happened to me. My wife and I had made “paalam” to Miriam Defensor and Jun Santiago in December 1995. That was seven months after we had helped Miriam become a Senator and almost four years after I had left Speaker Mitra and the LDP to join Miriam and Jun in the PRP.

In 1996, we joined Erap thru Reli German and Robert Aventajado.

However, they did not bring me into the PMP or JEEP ni Erap. They assigned me to a special operation on my own.

A Heart like Erap’s
After a whole year of doing nothing, I tried to transfer to the PMP under Chairman Neptali Gonzales and Secretary General Benjamin Abalos.

However, they both resigned to be replaced by Orly Mercado and Lito Banayo. By then, nalipasan na ako ng gutom kay Erap (Not in the sense of food and money but rather mission and work.).

So I left Erap and went to GMA and Kampi in 1997. I supported GMA not due to her own worth but because of my colleagues of the past who were now with GMA and Kampi.

Almost a year after leaving him and his group, in September 2010, I was again invited to have lunch with Erap.

That has led to Wednesday lunches with Erap for the past 11 months.

Now, it is Wednesdays and Fridays.

It is not at all surprising for Erap to forgive and renew friendships with those who have left him.

What is surprising is that in my senior years, I developed many physical aches and pains during the year that I was not eating Erap’s rich cuisine.

They developed during the time that Noynoy was not nurturing comradeship, friendship and “pakikisama” with me and my comrades.

Sticker King
On December 30, 2002, the Philippine Daily Inquirer featured me on its front page holding a new black and white “Question Mark (?)” sticker.

That same day, at Rizal Day Ceremonies in Baguio, GMA promised not to run in May 2004.

On January 2, 2003, I blew the whistle on many anomalies at the PCSO where I was a member of the Board of Directors. To GMA’s credit, she said that she would not interfere. She did not replace me until January 16, 2004, a year and half a month later.

By that time I was well on the way to establishing myself as the Sticker King.

Eventually, I would produce more than a million stickers of about five hundred designs for FPJ and his organizations and supporters.

Noted: FPJ for President
In the following months after my PCSO expose , I frequented the 365 Club at the Jeepney Bar Coffee Shop of the Intercontinental Hotel.

There, I met again an old colleague from PDP Laban (1982-1985), Ver Tordera.

Together with former Makati Assemblyman Architect Gaite and others, Ver had organized the FPJ Volunteers Brigade. They were the Chairman and Secretary General.

I joined them and we worked first to convince FPJ to run for President. When FPJ agreed to do so in October, November and December 2003, we worked for his election.

We won but GMA stole the Presidency a second time.

The National Board of Canvassers, the Congress Majority just “Noted” us.

Last Saturday, August 20, FPJ’s birthday.

We went to the Poe Family burial plot at the Manila North Cemetery to honor the King who would have been President.

Anti-FM
For a detailed explanation of how his and our dreams were thwarted by GMA and her Garci, read my eldest brother, Mano’s (who died Sunday, July 24.) article “Fraud in the 2004 Presidential Elections” in the “Talk of the Town” section, pg. 14 of the Philippine Daily Inquirer, Sunday, August 14.

Yesterday, August 21, was the 31st anniversary of the start of the bombing campaign of the April 6 Liberation Movement.

This campaign culminated in the bombing of the American Society of Travel Agents (ASTA) convention at the PICC right after Marcos finished his speech.

The A6LM was the most cost effective violent anti-FM liberation movement.

It came into being after the earlier and older “Light a Fire” freedom fighters were caught and neutralized in late 1979.

P-Noy’s Ks
Tuesday, August 23, is not only the actual date of the first anniversary of OpinYon, it is also the first anniversary of the Luneta Hostage Massacre.

That grandmother of all “kapalpakans” is what reopened my eyes and opened my mouth about P Noy, his administration and his k’s...

From September 26, 2009 until August 22, 2010, I supported Noynoy.

After May 11, 2007 until August 22, 2010, I refrained from criticising P-Noy and his officials.

Sometime in June last year my suppressed feelings about P-Noy crossed paths with a would-be publisher of a weekly opinion paper.

The rest is history – of OpinYon’s Linggoy and “Yesterday, Today and Tomorrow.”