By JONG CADION
 |
| The Freedom from Debt Coalition |
OZAMIZ CITY - The
Freedom from Debt Coalition, together with various people’s organizations, will
be holding a National Day of Protest on November 22, 2012 to register the
people’s resistance to the skyrocketing electricity rates that continue to
burden the people and the relentless privatization of the power industry under
the EPIRA or Electric Power Industry Reform Act.
Nationwide, more
than 50 cities and municipalities have expressed their support for the National
Day of Action Against High Electricity Rates.
“We expect
that more people will join the protest in the coming days,” FDC added.
According to
FDC, there are, at least, 10 reasons why the people should join the National
Day of Protest.
First, the
people should call for the repeal of the EPIRA. Since its enactment, the EPIRA
has not done anything to lower electricity rates. Instead, it has removed the ownership,
management and control of government as it allowed the privatization of the government’s
power assets to private corporations whose only intention in acquiring such
properties is profit.
Second, the
National Day of Protest is part of the struggle against the continuing increase
of electricity rates. In Luzon, people
pay around P11/kWh and in Mindanao is P/7-8/kwh, a far cry from the pre-EPIRA
rates of P5/kWh.
Third, the
Senate Bill 3250, which was filed by Sen. Serge Osmeña, to extend the life of
the Power Assets and Liabilities Management (PSALM) Corp. for another 10
years. The question is what has the
PSALM done since its creation? Before
PSALM Corp., the debt of the National Power Corporation (Napocor) stood at
US$16, after the creation of the PSALM and subsequent sale of 80% of Napocor’s
assets, the present Napocor debt stands at US$17B. With callous gall, PSALM intends to borrow
P60B next year for its operations and maturing obligations.
Fourth, PSALM
Corp. has been pushing the Energy Regulatory Commission (ERC) to approve its
application to pass on the “stranded debt,” amounting to P140 billion, to the
consumers. PSALM Corp.’s application
would translate to an additional 36 centavos/kWh to be charged against the
consumer for 3 years or 3 centavos/kWh payable in the span of 15 years. This additional charge will reflect as the
Universal Charge.
Fifth, the
open access or electricity market under the Wholesale Electricity Spot Market
(WESM) which is prone to price manipulation. The truth of the matter is that
five big players of the power industry can easily dictate the outcome of the
market.
Sixth, the
recent Supreme Court decision to privatize the Angat Dam hydro-electric power
plant (HEPP). The Angat HEPP is now 100%
owned by Korea Water Resources Corporation, a foreign company. This goes
against our Constitution’s provisions on sovereignty. Angat Dam is the
single-most important water source of Metro Manila as it provides 97 percent of
the water needs of at least 12 million residents of the country’s capital and
irrigates some 31,000 hectares of farms across 20 towns and municipalities in
Bulacan and Pampanga.
Seventh, the
use of the Performance Based Rate (PBR) methodology to determine rate
increases. The ERC has allowed excessive
rate increases this year which ranges from 15% to 21% returns for the private utilities. These increases goes beyond the 12% ceiling
for returns as stipulated in the Return on Rate Base provided for by the Public
Utilities Act.
Eight, the
recent updating of the Bill Deposit Charge, which serves as an insurance for
Meralco against residents who are not capable to pay for their electricity.
Ninth, in the
Visayas, PSALM Corp. is pushing for the privatization of the independent power
producer administration (IPPA) supply contract of the Unified Leyte Geothermal
Power Plant (ULGPP). If the
privatization of the IPPA pushes through, this may translate into a 100%
increase in rates quite similar to what happened in Negros Occidental.
And tenth, the
continued push to privatize the Agus-Pulangi hydro plants in Mindanao. Agus-Pulangi continues to be the source of
affordable electricity for the Mindanaoans, which roughly provides for more
than %50 of the island’s electricity needs.
If the privatization of the said plant pushes through, the possibility
of rate increases will be inevitable.
Aside from
FDC, other organizations that support this nationwide action include: PALAG-Mindanao,
Akbayan, Alliance of Progressive Labor, Alyansa ng Manggagawa sa Agrikultura, Association
of Major Religious Superiors in the Philippines, BISIG, Bukluran ng
Manggagawang Pilipino, Faith-based Congress Against Immoral Debts, Kalayaan,
Katarungan.
Kilusan para
sa Pambansang Demokrasya, KMBM, Koalisyong Pabahay ng Pilipinas, Kongreso ng
Pagkakaisa ng Maralita ng Lungsod, KUMPAS, Makabayan-Pilipinas, Pagkakaisa ng
mga Manggagawa sa Transportasyon, Partido Lakas ng Masa, Partido ng Manggagawa,
Piglas-Kababaihan, and SANLAKAS.
