A NEW civil society group, identifying themselves as the Power Alternative Agenda in Mindanao (Palag Mindanao), opposed Monday plans to privatize the Agus-Pulangi Hydropower Complexes (APHC).
Jong Pacano of Freedom from Debt Coalition (FDC), a member of Palag Mindanao, said it does not make sense to privatize APHC because the Electric Power Industry Reform Act (Epira) of 2001, which "supposedly regulates the privatization of energy generation and distribution has failed to protect the interest of the consumers."
Pacano said Republic Act No. 9136 otherwise known as the Epira law was originally set out to reform the electric power industry of the Philippines and ensure a reliable and affordable electric power for all Filipinos.
"Under the aegis of a free and fair competition towards greater efficiency, privatization has been one of Epira's provisions. The energy resources in Luzon and the Visayas has privatized, sa ngayon nasa (as of now) 80 percent privatized and 20 percent assets na lang ang naiwan sa gobyerno (were left to the government), ito na yung APHC. For the past nine years na naimplement ang Epira law, na privatize na mostly ang energy generation assets. Question is, kung ma-privatize ito (APHC) makakabuti ba sa atin (Will it benefit us)?" Pacano said during Kapihan sa SM media Forum.
Pacano said that with privatized power generation and distribution come higher rates if not more frequent rate increases.
"Ito nga ang nangyari for the past years na na-implement itong Epira law. We also do not see sense in privatizing (APHC)," Pacano said.
Erwin Sarmiento from the same group also said "what private companies owning energy assets for the past years have shown is not fair competition as what Epira law has aimed for."
He pointed out that the law did not even stir up competition to benefit the consumers since there are only two conglomerates fighting for franchise: those owned by the Lopezes or those owned by the Aboitizes.
The APHC has been protected through a 10-year moratorium under the Epira law. Section 47(f) of said law states: The Agus and Pulangi Hydropower Complexes shall be excluded from among the generation companies that will be initially privatized and that the complexes may be privatized not earlier than ten (10) years from the effectivity of this Act.
This moratorium will end on Epira’s 10th year on June 2011 and moves toward privatizing APHC have started.
Palag Mindanao was formed against the privatization of APHC in Mindanao and works to promote and uphold the democratic ownership, access, and control of Mindanaoans to a clean, renewable, and sustainable energy resource.
However, Pacano said they are open to the possibility of the APHC's privatization as long as the Epira law "will be amended for the protection of the consumers and the resources."
Palag Mindanao created February this year is composed of more than 20 representatives from various civil society organizations, including Napolcom union leaders, people's organizations, local government units, consumer groups, consumer alliance, local electric cooperatives, academe members, and representatives from indigenous people and Moro communities.