DAVAO CITY—Mindanao governors continue to
oppose plans to sell hydroelectric plants in the island, insisting that
solutions to the power crisis currently gripping Mindanao need not lead to
higher electricity costs as President Benigno Aquino stressed during a summit
on the crisis last April 13.
Davao del Norte Gov. Rodolfo del Rosario
conveyed the governors’ stand to the President during the summit and reiterated
last Tuesday that the governors’ position will not change.
Two major hydroelectric plants—Agus and
Pulangi—would be sold to the private sector under the Electric Power Industry
Reform Act (Epira). Mr. Aquino, during the summit, said this was part of the
solution to Mindanao’s power crisis.
On Tuesday, the governors reiterated their
opposition to the sale and insisted that amendments to Epira were among the
ways out of the crisis.
The governors reiterated their position a day
after the President said he was willing to dialogue further with Mindanao
officials, civil society and consumer groups on the power crisis.
“Let’s shatter the myth that the Napocor
(National Power Corp.) and the Agus-Pulangi complex are a losing proposition,”
Del Rosario said.
If it is any indication that generating power
is not a losing venture for government, Del Rosario presented what he said was
Napocor’s income last year—P36.9 billion in annual gross generation revenue and
an average profit margin of P73.2 billion.
Surigao del Sur Gov. Johnny Pimentel said
instead of selling the power plants, the government should rehabilitate these,
which is what exactly government plans to do with Agus 6 and Pulangi which
might cost P9 billion and take 30 months.
Agusan del Sur Gov. Eddiebong Plaza said
selling the two hydropower plants could lead to unreasonable rates and
monopoly.
Agusan del Norte Gov. Erlpe John Amante said
higher power costs would simply stop investments from coming to Mindanao.
“Privatizing the power plants, which
currently provide us a cheaper source of power, would remove Mindanao’s advantage
to attract more investments,” Amante said.
South Cotabato Gov. Arthur Pingoy said the
governors are sticking to their position opposing the sale of the hydropower
plants.
North Cotabato Gov. Lala Taliño-Mendoza said
she was hoping the President would listen to them.
“We wish he (Mr. Aquino) would take a second
look at our resolution,” Mendoza said.
Davao del Sur Gov. Douglas Cagas agreed,
saying: “He already heard the sentiments of the people of Mindanao during the
summit. Although he has the power to exercise as President, he must also review
our resolution.”
Del Rosario said Napocor should rescind its
Operational Management Agreement with the Power Sector Assets and
Liabilities Management (PSALM), which required Napocor to remit all its
earnings to PSALM, including those from the Agus and Pulangui hydropower
plants.
“It is high time that Napocor rescind this
contract and be allowed to run its affairs,” Del Rosario said.
He said Epira has been a bane to Mindanao for
the last 11 years and should be reviewed by Congress.
He said selling the hydropower plants to the
private sector would simply worsen the situation.
“It is bad enough as it is. It will be
intolerable once it is surrendered to the private sector,” he said.
Del Rosario also called for the reclassification
of power generation firms as “utilities” and place a cap on these firms’
profits. He said some independent power producers earn up to 50-percent
return on rate base, “which is too much.”
“Just a 1-centavo per kilowatt-hour increase
imposed nationally translates into a P670-million annual income,” said the
governor, adding it was time for Mr. Aquino to appoint a Mindanao consumer
group representative to the Energy Regulatory Commission.
Misamis Oriental Gov. Oscar Moreno said one
good thing that the summit brought was to open the lines of communication
between the people of Mindanao and officials who have the power to decide the
future of the island’s electric supply.
http://newsinfo.inquirer.net/178899/govs-defy-aquino-on-power-plant-sale
Conclusion
Upon reading this news myself I also have favored the decisions of the governors are for the best, selling the power plants will only lead to higher living expense here in Mindanao.(which its already is) It may be a great opportunity for the private sectors but at a great trade-off of higher electricity bills for the citizens. not only to the citizens but also on the business firms will be greatly affected for the further increase of the electricity bills.
As the president of this country (Mr. Aquino) should take responsibility on resolving this economical problem we are experiencing here in Mindanao without the involvement of political propaganda and self-interest in-mind, for the prosperity of Mindanao and the entire country.
