CONSUMERS DEMAND!
Herman Tiu Laurel
11/7-12/2011
Not a week passes without new and shocking reports about the ongoing looting of the pockets of every Filipino electricity consumer and its dire consequences on our national economy. Take this latest news in the business pages, “High power rates force exporters to relocate,” depicting the exodus of Philippine export companies to China or Vietnam, where power costs are as low as $0.05/kWh compared to the Philippines’ $0.25/kWh. No wonder Vietnam got $8 billion in foreign direct investments in 2010 and China, an astronomical $105.7 billion; while the Philippines only had $1.7 billion.
Why is this country of 95 million people, a supposedly better educated population and champion of “democracy” in the region, tolerating such an inane, unjust, if not economically suicidal, situation in its power sector? Honestly, nothing will come of any effort to improve the economy without slashing our power rates by half, along with the throats of the power plunderers.
Nora Halili Lao, holiday and gifts sector director of the Philippine Exporters Confederation (PhilExport), said in various reports that the high power costs in the country make exporters’ prices too high to be competitive with their counterparts in other lands. She added that up to 40 to 50% of exporters’ production and operating expenses are attributed to power costs.
As a result, “producers and manufacturers suffer. They… are no longer competitive, so they go to (other) countries for an ocular inspection to determine if they can compete (from there),” Lao said in a statement posted on the PhilExport website.
One fishing company I know personally has subsidiaries already operating in Vietnam, and is even using China as a cold storage point for its fish supplies to avail of the cheap storage costs there. Filipino furniture companies have also relocated to Vietnam.
While this dire plea is read in one part of the newspapers, right beside the same panicky stories lie side-by-side corporate reports of the glowing profit margins and continuing acquisitions of giant, oligarchic power companies.
For example, this headline, “Meralco eyes P14.5 billion core net income for 2011,” reported the Manila Electric Co.’s expected rise in profit from 2010’s P12.2 billion to this year’s P14.5 billion, which its CEO Manny Pangilinan announced is based on a mere 2% increase in its volume of energy sold!
Reading this report, one might believe that the increase is only thereabouts of 12% when it is actually double that (even though a 12% profit increase on a mere 2% volume rise is already anomalous for a public utility with a captive market).
Another headline, this time from the Philippine Star (“Meralco net income surges 25% to P9.95 billion in 9 months on higher sales”), was more accurate in stating the company’s actual profit jump. But it was still not without any PR spin due to the less-than-honest linking of its increased profits to “higher sales and controlled expenses.”
In all, what these reports hide is the surge in Meralco’s “capital expenditure” (capex) of $9 billion that is charged to consumers, even when this is not really invested while its manipulated distribution rates actually go up. This capex is based on what the Energy Regulatory Commission (ERC) terms the Weighted Average Cost of Capital (WACC), which uses Meralco’s claims of the cost of its assets as basis for setting rates, even when such claims are overvalued by as much as 100%--and despite these being utilized by only 50%. These facts, already confirmed by appraisal companies utilized by the ERC and Meralco, were revealed in hearings participated in by our anti-power plunder advocates such as Mang Genaro Lualhati, Jojo Borja, Butch Junia et al. But wait; there’s more.
On top of these is the exemption from bidding that the ERC had granted Meralco and all PBR (Performance Based Regulation)-qualified distribution companies for all their equipment purchases, which has resulted in asset overpricing of over 500% (such as in the case of Meralco’s transformers, which its buys from its own subsidiary).
Another item announcing, “Aboitiz Group remains keen on assets of Napocor,” triggered me to “connect the dots.” In the other newspaper I write for, my recent article, “A new Psalm-ERC-IPP con game?,” touched on the Power Sector Assets and Liabilities Management Corp. (Psalm)’s scheduled privatization of four power barges--this as the National Grid Corp. of the Philippines (NGCP) issued a “red alert” on another impending power crisis in Mindanao.
I recall the same drama being staged between 2009 and 2010 about an El Niño threat to Mindanao’s hydro-electric plants, with Psalm selling off two power barges (PB 117 and 118) at around the same time to the Aboitiz group for $30 million, which the latter miraculously pegged at a hefty $84 million as a fair market value, which it then submitted for approval to the ERC as the basis for its exorbitant rates when the same power barges were needed during the island-wide power crisis. Take note: The crisis was not even largely due to El Niño but the Psalm and Napocor expedient of draining hydro-electric dams and the many untimely power plant maintenance shutdowns.
Manipulated crises and privatization? Oh, the link is too obvious.
By December this year, Psalm even wants to privatize power barges 101, 102, 103, and 104. I predict these four will be sold off at the same bargain basement prices as PB 117 and 118 to one or several of the usual power oligarchs. No matter who among them will be lucky enough to get these for a song, the acquisition cost will certainly be passed on to consumers through the ERC appraisal system, at a price at least three times higher than the original cost, with this ending up as the capital base. In short, what this means is that the power plunderers get to acquire these assets without putting out any of their own money and get to enjoy windfall profits immediately. It’s time to end this madness!
(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8:15 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 TV and radio archives)
Monday, November 7, 2011
'What to do now, Pinoy?'
DIE HARD III
Herman Tiu Laurel
11/7/2011
I translated this letter from a Nigeria-based OFW, with some parts retaining the original.
“Pinoy, paano ka na ngayon?, by Lito Nucum: ‘NOW, THEREFORE, the POEA (Philippine Overseas Employment Administration) governing board resolves… to stop the deployment of OFWs to the above-mentioned countries for non-compliance with the guarantees required under RA 10022.” The POEA issued GB Resolution No. 7, Series 2011, which named 41 countries that have not complied with Rule III of RA 10022. Is this the appropriate response to help Filipinos who take their chances to work in other countries? Be it Afghanistan, Iraq, Libya, Lebanon, Kuwait, or Saudi Arabia, why do Pinoys still persist in leaving their homeland and face the perils awaiting them in these and/or other countries that are non-compliant still with Rule III of RA 10022?
“What I do know is that it is the right of every Filipino to seek a means of livelihood wherever in the world. When the state fails to provide its own people with sustainable employment, tutunganga na lang ba si Itay at Inay at titignang nakangiti ang isang katerbang mga anak habang tirik ang mata at nakanganga ang bibig sa gutom? ‘Survival,’ the life of the entire Filipino family, is at stake and we want to stir up the conscience of our government ‘not to impose’ a ‘deployment ban’ on whatever country. I know our government realizes the lack of opportunities in our country. That is why, despite violation of Section 5 of RA 10022 which ‘shall allow the deployment only of skilled Filipino workers,’ thousands upon thousands of inengs, ates, nanays, titas and lolas still force themselves into countries abounding with abuses. Ano sa palagay ng gobyerno natin, makiki-chismis sila doon, makikipag-karaoke lang? Gising… kailangan nilang mabuhay nang marangal.
“Many of those in government ride around in luxurious cars, have nice homes in Forbes, Dasma, or maybe Alabang, and send their children to Ateneo, UP, La Salle, sporting signature clothes, smartphones, and pa-Belo-Belo pa. Well, after all, madali lang naman sabihing, ‘Lord, I am not worthy to receive you but (I) only (need) to say the word and I shall be healed. Until next kumpisal ulit.’ Anyway, here are some parts of the report as seen on GMA News: ‘DoLE (Department of Labor and Employment) Secretary Baldoz said the ban will affect a little over 200 OFWs, who she said can avail of the government’s integration program if they wish to return home. Earlier Wednesday the POEA ordered a deployment ban on 41 countries for the lack of guarantees ensuring the welfare of overseas Filipino workers. She said many of the OFWs deployed to the 41 countries are employed by globally operated companies and are not covered by the deployment ban.’
“Nagtatanong lang ako kung saan nakuha ng kagalang-galang na DoLE secretary yung ‘a little over 200.’ Maybe, I thought, this was just a typo error and two zeros got lost. According to my research on POEA data, there are 21,948 land-based OFWs that are legally working in the countries cited. First is Libya where there are 11,000 heroic fellow Filipinos who, despite the war, choose not to return home yet. I would be grateful if only a little over 200 are affected by the ban in 41 countries, which means 21,700 of our countrymen working in globally operated companies are not covered by the deployment ban. But will this be the view of the BI (Bureau of Immigration)? E, walang hinihintay ang mga kapatid diyan sa BI kung hindi ang mga ganitong Resolution at iba pang government orders na siyang nagiging sanhi ng lalong pasakit sa Pinoy na gustong mag-hanap-buhay sa abroad. For the BI, those countries affected by the ban will become gold when GB R#7 comes into effect.
“I am certain that many of our countrymen working in countries affected by the ban will hesitate to take their vacations to the homeland, fearing they will not be able to return to the foreign countries giving them livelihood. What do they say to their families? ‘Inday, sorry Ma, i-explain mo na lang sa mga bata kung bakit hindi tayo magkakasama sa Paskong ito. Merry Christmas. I love you all very much at God bless; ingat.’ Like us here in Nigeria… many have fallen victim to that deployment ban; and I am one of them. That is why I took the nerve to express my innermost feelings, and cry out loud, ‘remove the deployment ban,’ or else another huge question shall face us all: ‘Pinoy paano ka na ngayon?’…
“About the partial deployment ban here in Nigeria, it should not be so. It is clearly stated in Section 6 RA 10022, ‘termination or ban on deployment,’ which states ‘notwithstanding the provisions of Sections 1 and 5 of this Rule, in pursuit of the national interest or when public welfare so requires, the POEA governing board, after consultation with the Department of Foreign Affairs, at any time, (may) terminate or impose a ban on the deployment of migrant workers.’ But what national interest and public welfare is affected for a certain country that is already compliant but still faces the ban, like Nigeria, that has given life to our hopes that our own country has not been able to give? Then they will impose the ban? Is this what the country that took us in gets in return — shamed before the whole world? Our government in the Philippines is ungrateful and treacherous.”
The letter speaks volumes about the plight of our OFWs under the present government of incompetence and naiveté that was brought in by the “civil socialites” of the Yellow and Akbayan charlatans. With P-Noy, they have all done huge damage, instead of good, to “the people” whose name they woefully invoke to claw to politics and plunder.
(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8:15 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 TV and radio archives)
Herman Tiu Laurel
11/7/2011
I translated this letter from a Nigeria-based OFW, with some parts retaining the original.
“Pinoy, paano ka na ngayon?, by Lito Nucum: ‘NOW, THEREFORE, the POEA (Philippine Overseas Employment Administration) governing board resolves… to stop the deployment of OFWs to the above-mentioned countries for non-compliance with the guarantees required under RA 10022.” The POEA issued GB Resolution No. 7, Series 2011, which named 41 countries that have not complied with Rule III of RA 10022. Is this the appropriate response to help Filipinos who take their chances to work in other countries? Be it Afghanistan, Iraq, Libya, Lebanon, Kuwait, or Saudi Arabia, why do Pinoys still persist in leaving their homeland and face the perils awaiting them in these and/or other countries that are non-compliant still with Rule III of RA 10022?
“What I do know is that it is the right of every Filipino to seek a means of livelihood wherever in the world. When the state fails to provide its own people with sustainable employment, tutunganga na lang ba si Itay at Inay at titignang nakangiti ang isang katerbang mga anak habang tirik ang mata at nakanganga ang bibig sa gutom? ‘Survival,’ the life of the entire Filipino family, is at stake and we want to stir up the conscience of our government ‘not to impose’ a ‘deployment ban’ on whatever country. I know our government realizes the lack of opportunities in our country. That is why, despite violation of Section 5 of RA 10022 which ‘shall allow the deployment only of skilled Filipino workers,’ thousands upon thousands of inengs, ates, nanays, titas and lolas still force themselves into countries abounding with abuses. Ano sa palagay ng gobyerno natin, makiki-chismis sila doon, makikipag-karaoke lang? Gising… kailangan nilang mabuhay nang marangal.
“Many of those in government ride around in luxurious cars, have nice homes in Forbes, Dasma, or maybe Alabang, and send their children to Ateneo, UP, La Salle, sporting signature clothes, smartphones, and pa-Belo-Belo pa. Well, after all, madali lang naman sabihing, ‘Lord, I am not worthy to receive you but (I) only (need) to say the word and I shall be healed. Until next kumpisal ulit.’ Anyway, here are some parts of the report as seen on GMA News: ‘DoLE (Department of Labor and Employment) Secretary Baldoz said the ban will affect a little over 200 OFWs, who she said can avail of the government’s integration program if they wish to return home. Earlier Wednesday the POEA ordered a deployment ban on 41 countries for the lack of guarantees ensuring the welfare of overseas Filipino workers. She said many of the OFWs deployed to the 41 countries are employed by globally operated companies and are not covered by the deployment ban.’
“Nagtatanong lang ako kung saan nakuha ng kagalang-galang na DoLE secretary yung ‘a little over 200.’ Maybe, I thought, this was just a typo error and two zeros got lost. According to my research on POEA data, there are 21,948 land-based OFWs that are legally working in the countries cited. First is Libya where there are 11,000 heroic fellow Filipinos who, despite the war, choose not to return home yet. I would be grateful if only a little over 200 are affected by the ban in 41 countries, which means 21,700 of our countrymen working in globally operated companies are not covered by the deployment ban. But will this be the view of the BI (Bureau of Immigration)? E, walang hinihintay ang mga kapatid diyan sa BI kung hindi ang mga ganitong Resolution at iba pang government orders na siyang nagiging sanhi ng lalong pasakit sa Pinoy na gustong mag-hanap-buhay sa abroad. For the BI, those countries affected by the ban will become gold when GB R#7 comes into effect.
“I am certain that many of our countrymen working in countries affected by the ban will hesitate to take their vacations to the homeland, fearing they will not be able to return to the foreign countries giving them livelihood. What do they say to their families? ‘Inday, sorry Ma, i-explain mo na lang sa mga bata kung bakit hindi tayo magkakasama sa Paskong ito. Merry Christmas. I love you all very much at God bless; ingat.’ Like us here in Nigeria… many have fallen victim to that deployment ban; and I am one of them. That is why I took the nerve to express my innermost feelings, and cry out loud, ‘remove the deployment ban,’ or else another huge question shall face us all: ‘Pinoy paano ka na ngayon?’…
“About the partial deployment ban here in Nigeria, it should not be so. It is clearly stated in Section 6 RA 10022, ‘termination or ban on deployment,’ which states ‘notwithstanding the provisions of Sections 1 and 5 of this Rule, in pursuit of the national interest or when public welfare so requires, the POEA governing board, after consultation with the Department of Foreign Affairs, at any time, (may) terminate or impose a ban on the deployment of migrant workers.’ But what national interest and public welfare is affected for a certain country that is already compliant but still faces the ban, like Nigeria, that has given life to our hopes that our own country has not been able to give? Then they will impose the ban? Is this what the country that took us in gets in return — shamed before the whole world? Our government in the Philippines is ungrateful and treacherous.”
The letter speaks volumes about the plight of our OFWs under the present government of incompetence and naiveté that was brought in by the “civil socialites” of the Yellow and Akbayan charlatans. With P-Noy, they have all done huge damage, instead of good, to “the people” whose name they woefully invoke to claw to politics and plunder.
(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8:15 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 TV and radio archives)
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