"Ha tusli kita." " We were deceived was the first reaction of Hon. Santiago Regalado after the power point presentation on "Tariff Impact of Power Supply from Global Business Power Corporation (GBPC)". It was presented during the 33rd Regular session of the Aklan Sangguniang Panlalawigan on Wednesday, September 13, 2006 by Engr. Ricardo Ilito, OIC – Manager of AKELCO.
According to Engr. Ilito, the effect in the existing Akelco rate as of August 2006, per customer classification are as follows:
Residential Commercial Industrial Public Street
Present Per KWH (P) Per KWH (P) Per KWH (P) Per KWH (P) Per KWH (P)
7.1140 5.6926 6.2266 5.8218 10.9736
9.2175 7.7961 8.3301 7.9253 13.0771
2.1035 2.1035 2.1035 2.1035 2.1035
Looking at the table above, the new rate following the Energy Power Purchase Agreement (EPPA) will effect a P2.10 per kilowatt hour increase regardless of customer classification. This is where the deception is.
"What happen to the assurance given to the SP Aklan members when Mirant representative appeared before the SP Aklan members in session in connection with its application for a resolution to indorse its Environmental Certificate of Compliance?" asked Hon. Regalado, Mr. Ilito did not answer this question.
According to Regalado, Mirant representative assured the SP Aklan that Mirant will charge as high as if not lower than what NPC charges.
Moreover, it was Mirant which applied for ECC, AVON Rivers got the ECC and now it is the Global Business Power Corporation which deals with AKELCO and SP Aklan.
Engr. Ilito begged not to answer the question because he was "not a part of the negotiating panel". By way of paralism, Regalado pointed out, the case is like a three young men who went inside a restaurant and settled on a table. A waiter came near them, gave the menu card with the list of menus with its corresponding prices per menu order. After reading the menu card, the three young men ordered the food of their choices.
The foods were served, the guests ate and requested for their bills. The bill came but the costs of each menu appeared higher than what they read in the menu card given them before they ordered the food.
But the waiter who showed them the menu card was no longer there. They have a new waiter with a revised prices in the menus listed in the menu card.
The original Energy Power Purchase Agreement (EPPRA) was signed with presence of SP Members. However, the original EPPA was amended without the Aklan SP member’s knowledge. The amended EPPA altered the computation of price energy GBPC will charge AKELCO at a minimum volume of 4,000,000 kilowatt hour per month. If this quantity is not fully consumed just the same, AKELCO will pay for 4,000,000 kilowatt hour. And the contract is effective for 20 years, when most of us are no longer existing in this world when the contract expires in the year 2026.
According to Hon. Ramon Gelito of SP Aklan, the proposed EPPA amended contract was dated August 4, 2004. It was approved by AKELCO Board of Directors on August 5, 2004 "after a thorough study and deliberation."
This swift action is what is needed on matters of concern in government and even private offices. However, is there really a thorough study and deliberation? It is extremely hard to believe this thorough study and deliberation took place. How did Mirant transmit the document, amended EPPA to BOD Akelco, Lezo? By special messager? e-mail? from Metro Manila to Lezo, Aklan?
Can the BOD Akelco gather its members upon receipt of the proposed EPPA and deliberate on it immediately? It is an "impossible dream".
A chairman of the Akelco BOD who was a participant to the approval of EPPA on August 5, 2004 is now urging his radio listeners to attend the general meeting of Akelco to tell Akelco of their feeling with the view to request GBPC to reduce its energy price.
What are the BOD members there for?
According to Vice Governor Ronquillo C. Tolentino, what happens to Aklanons as far as Akelco is concerned is a "nightmare". Tolentino vowed to use all remedies to block the impending power rate increases.
Several observers predict the forthcoming power rate increases if not blocked will: 1. further improvise majority of the Aklanons, particularly the farmers and fisherfolks; 2. increase inflation and prices of prime commodities like foods, groceries, and services like boarding houses and repair shops; 3. LGUs, like barangays will minimize street lighting thereby increasing criminality, even if it will adversely affect family planning as most households will shut off its lights very early in the evening.
According to Engr. Ilito, Atty. Cyril C. Del Callar issued a certification that NPC do not have the capacity in the Visayas to supply 12,500 KW and 4,000,000 KWH per month electric power that Akelco intends to source from Mirant. The certification was made on May 18, 2005. Does this certification say NPC "cannot supply" Aklan with its energy amount needed?
According to Mr. Nelson J. Homena, Plant Manager, Panay Diesel Power Plant, National Power Corporation, NPC has ample energy to supply the needs of Akelco. It has a contracted demand and energy with Akelco of 11,998,310 Kwhr.
As of August 2006 billing Akelco charged its clients at P7.11 per Kwh which Engr. Ilito compared with Guimelco at P9.79; PECO at P9.52, and Meralco at P10.14. If the EPPA is implemented, the P7.11 will be P9.21 per Kwh or P2.10 per Kwh increase.
For one thing – Mirant, to get ECC, assured Aklanons through the SP members, that it will sell energy even lower than NPC. Mirant applied for ECC, Avon River got it and GBPC is about to implement with Akelco the increase charges. Mr. Erico Bucoy as chief executive officer of Akelco and Mr. Chito Peralta, Chairman, Board of Directors of Akelco who negotiated the EPPA had resigned after the Energy Regulatory Board approved the EPPA.
With these, is Hon. Santiago Regalado’s statement "ha tusli kita" justified? Is Vice Governor Ronquillo C. Tolentino correct of saying it" it was a "nightmare"? /MP mailto:madyaas_pen@yahoo.com
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