Ito kaya ang dahilan kung bakit sobrang taas na ng singil sa kuryente?

From Herman Tiu Laurel:

Automatic ‘cost recovery:’ P1/kwh increase

DIE HARD III
Herman Tiu Laurel

07/20/2007

Just a month after the removal of the public hearings required by the Epira Implementing Rules and Regulations by the Department of Energy and the Energy Regulatory Commission (ERC) , with Meralco and a handful of power distributor-independent power producer (IPP) combines, Meralco has exercised its power to “automatically” raise its rate under the pretext of “cost recovery” by P1/kwh. From P4.69/kwh to P5.67/kwh or a full 25 percent increase and adding P2 billion a month to the coffers of Meralco — a quarter of a hundred billion a year more charges without public hearing.

Resigned Energy Secretary Lotilla said, “I would like to end my vow of poverty,” so where does he get his money for expensive antique cartographs for his hobby? All DoE chiefs that promoted privatization from Viray to Lotilla are rewarded beyond the wildest dreams of most Philippine government bureaucrats. In the same way, the ERC appointees also do have great futures.

With Lotilla, incumbent ERC chairman Albano gave Meralco and other power-generating distribution companies their manna from heaven. Albano argued that the ERC would have to hear 1,600 petitions for “cost recovery” if the power utility companies were not given automatic privilege to recover the costs they claimed. Nasecor’s Pete Ilagan belies Albano’s claim because he asserts, “There are only seven companies engaged in both generation and distribution that the ERC has to deal with and not a hundred as Albano claims.”

Albano and Lotilla argued that they pity the power utility companies because of the burden of their unrecovered costs that have to wait for months to be heard and approved by the ERC; but they don’t or can’t and won’t pity the millions of power utility consumers many of whom have to scrimp on breakfast or on their children’s baon for school just to “advance” the cost recovery payment of Meralco and its ilk. A quarter of a hundred billion pesos will be sucked out of the millions of Meralco and other IPPs electricity consumers — imagine what contraction of the retail economy that will create.

Sen. Koko Pimentel (because he is the real 12th place senator) joined me at my table at the Club Filipino as I was writing this piece. He arrived to join the Binay “convention” of the anti-Gloria political groups, as well as meet his lawyers preparing for the Senate Electoral Tribunal protest of Zubiri’s proclamation. When Koko heard my explanation, he was shocked and kept repeating, “Are you sure its P1/kwh? That’s why the Meralco stocks shot up astronomically! The stock market players knew this automatic cost recovery was going to kick in!”

Koko added, “This automatic cost recovery is a post-audit system that spawns corruption. Checking for anomalies only after the disbursement. Charge the consumer first before public hearing and examination of the cost claims!” Consumers are put in an impossible situation now with Lotilla and Albano’s grant and we can audit only after they’ve withdrawn the blood and the blood donors are dead from the bloodletting. Why is it only Nasecor and this column are raising this rage to high heavens?

Ilagan and I had briefed the only sitting senator that will definitely take action on this matter: Senator Trillanes. We cannot preempt the senator’s legislative strategy that has been explained and is absolutely satisfactory. Of course, no legislation will be effective if the chief culprit is there on top of the executive branch of government to appoint the equally corrupt, pro-Big Business and anti-consumers such as Lotilla (now replaced by the job-hopping master of nothing Angelo Reyes) and Albano working in tandem with Meralco and company.

As we write this, our volunteer monitoring on the radio airwaves reported that Meralco’s claim that it will get only 13 to 15 centavos of the P1/kwh. The truth is the company will get at least 70 percent of the cost recovery of up to .70 centavos because it owns the IPPs from where Meralco gets the bulk of its power and where Meralco is also part owner. While here at the UNO-GO convention, I wondered if these “oppositionists” will bring up real policy issues as this automatic cost recovery promulgated by the DoE and ERC. Will Chiz Escudero bring it up? Impossible. He has a radio program on the Lopez-owned dzMM. Do you think he can speak out against this travesty of due process for the electricity consumers? What about Alan Cayetano? His late father became senator as the compañero on dzMM. Does Cayetano dare challenge their family benefactor?

Sen. Jinggoy Estrada filed a bill to junk Epira. He should revive it and maybe can beat Manny Villar Jr. and Mar Roxas II to the 2010 presidential run. The party that removes Gloria and Meralco’s plunder will be the next government. Can GO-UNO go in this direction?