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Wednesday, April 27, 2005
Prov'l Board hits energy commission on hike
By Lizanilla J. Amarga
THE Energy and Regulatory Commission (ERC) must justify the high electricity rate hike for Mindanao that is dependent on cheap hydropower and other indigenous energy sources, Senator Aquilino Pimentel Jr. said Tuesday.
This came as the Provincial Board (PB) of Misamis Oriental passed a resolution "vehemently objecting and condemning" the ERC's approval for another power increase.
During their regular session Monday, Provincial Board Member Norris Babiera proposed a resolution "expressing our vehement objection and condemnation" of the ERC recent hike approval in the amount of P5.56/kwh.
He said this is in addition to the P0.98 ERC provisionally approved last September 2004 or a total of P1.04/kwh that will be reflected in the April 2005 billings.
"...these increases will be an added burden to the Filipino people who had been struggling to survive amidst high oil prices and rising inflation," he said.
Meanwhile, Pimentel in a statement to Sun.Star Cagayan de Oro said since Mindanao is largely dependent on hydroelectric power, it should be minimally affected by the power rate hike.
This he said as he pointed how Luzon and Visayas are heavily dependent on imported oil and coal as power sources compared to Mindanao.
Pimentel who served as city mayor of Cagayan de Oro asked why the net rate increase for Mindanao to P43.75 per kilowatt hour (kwh) is higher than the P22.73 per kwh increase for the Visayas.
"What is it in the Visayas that merits the lowest increase in rates when Mindanao is not only self-sufficient in indigenous energy, but it also does not cost as many dollars to produce as those in the Visayas?" he asked the ERC.
Pimentel said in the recent rate hike approved by the ERC, the inefficiencies caused by the Independent Power Producers (IPPs) in Luzon and the Visayas affect power rates in Mindanao, where it should not.
Pimentel pointed out that the rate increases requested by Napocor have to do with increments for imported fuels such as coal, bunker oil and diesel used mainly by the IPPs in Luzon and the Visayas but Mindanaonons should bear less of the price increase.
"In Mindanao, we are less affected by the increases in the price of imported fuel inputs because our base load energy supply is substantially indigenous and renewable hydroelectric power," he said. "We only resort to imported fuels such as bunker oil for peaking and that is only a few hours at night."
The senator from Mindanao also criticized the Napocor for not seeing to it that debts owed by profitable IPPs to the state-owned utility firm should first be collected before seeking a rate hike.
He cited the case of the Magellan Cogeneration, Incorporated in Cavite, a subsidiary of the American IPP, Covanta Energy, which still owes P240 million to Napocor.
Pimentel said the ERC, as part of its regulatory responsibilities, must require Napocor to submit detailed progress reports.
This particularly on its debt collection efficiencies, detailing what IPPs owe it and if these have been collected, before granting the petition for power rate hike.
"This cannot be justified for an already besieged public to subsidize and effectively legitimize Napocor's collection inefficiency especially where public is relatively unaffected by such inefficiency," he said.
Noting that some profitable IPPs in Luzon have deliberately withheld paying its debts to Napocor, Pimentel said it is incumbent upon the ERC to see to it that these inequities are not inflicted on the consumers.
"To simply increase electricity rates is an easy way out. It is a blanket curse. Why should the ERC be soft on Luzon-based IPPs simply because they are big industrial corporations compared to an already victimized public? Shouldn't Napocor be collecting from the IPPs what is owed by them before they start inflicting these rate hikes on the public?" he said.
Pimentel expressed fears that the unfairness is systemic to the energy authorities saying, "This is patently unfair. Unfair to the public and especially unfair to Mindanao where we will be bearing the second highest power rate increase." |
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