Friday, December 08, 2006 Elusive reforms Speak Out
Dear Editor:
YEAR 2006 is about to end and the goals of the power industry under the Electric Power Industry Reform Act (Epira) pose to remain elusive as we see no relative progress at the significant front of achieving retail competition and open access on distribution wires to a disheartening futile period of three years after its passage in June 2001 nearly five years ago.
Obviously, the biggest stumbling blocks in the implementation of these reforms are the 70 percent privatization of the total capacity of generating assets of Napocor in Luzon and Visayas and the transfer of the management and control of at least 70 percent of the total energy output of power plants under contract with NPC to the IPP Administrators. To which efforts we might add, are having quite a long stride for some time now.
While Epira's strength is dared, we call to thank some brilliant minds taking actions. For one, we highly commend the efforts of Sen. Juan Ponce Enrile in introducing an amendatory bill (Senate Bill No. 1929) which sought to hasten the entry of competition and open access that most importantly protect consumer interests. We learned that it is in its interpellation period at the Senate now. But at the pace it is running interlaid with the forthcoming 2007 elections, it is to our fear that this bill will be archived in light that its counterpart bill at the House of Representative has conducted only one (1) hearing so far. This only means that it will never reach the Bicameral Committee for approval.
We also acknowledge Senator Serge Osmena's involvement in the power issues with his active and intelligent contention at Senate hearings, which we noted will add pillar to Epira. While the actions are good, we can't help but be under nascent uncertainty on what could possibly be his heart's desire on this round, out of dread perhaps that his rally is running the possibility of intentions that we fail to appreciate since we cannot recognize his clear stand. What the industry heeds is openness and sincerity to make the law work successfully.
With EPIRA up the spout, this is the sad state that makes competition in the Philippine Power sector an illusion. Not even the Joint Congressional Power Commission (JCPC) tasked, among other things, under item (g), Section 62 of the EPIRA, "to determine inherent weaknesses in the law and recommend necessary remedial legislation or executive measures" was sensitive enough to favorably act in strengthening the law. Instead, some legislators would delight and wallow in their authority during Senate hearings with probing questions that would grill and scathe invited resource persons from the energy agencies, rather than convene affably among themselves and come up all together with feasible solutions that will curb the weakness of the law.
Nevertheless, we still do look upon the JCPC as a positive catalyst and dispenser of reforms in the power sector. And at the hopes of seeing EPIRA through, we shall always hold on to that notion.
PETE L. ILAGAN President, Nasecore 10 Bayside Court Compound 680 Quirino Avenue Tambo, Parañaque City nasecore2003@yahoo.com
