by Ernesto T. Solidum
The Weekly Kapihan guests on August 13, 2011 discussed the topic, "State of Power Industry in Aklan". Present at Smokehauz Resto & Bar are key officers of Akelco who are Chito Peralta – Gen. Manager and Lorenzo Laserna – Power Consultant and Atty. Romeo Inocencio, former SP member and now Non Government Organization (NGO) member – Power Aklan.
Atty. Ronquillo C. Tolentino recalled the fateful meeting between then Provincial Governors Norada–Iloilo, Exequiel Javier–Antique, Cornelio Villareal, Jr.–Capiz, and Roberto Garcia–Aklan. That was in 1973 when they decided that Aklan river be tapped to generate cheap and renewable energy for Panay Island. Just when plans were afoot to realize the dreamed project, unfortunately this was unceremoniously sequestered by Iloilo.
Jalaur river, being a small system proved ineffective hence the current power outages, inefficiency and sky-rocketing energy cost. Indeed, this incident is very lamentable.
GM Peralta said that organizational profile of Akelco is very strong with 298 employees (ratio of 1:350 consumer members following the recommendation of National Electrification Administration (NEA). Akelco covers all 17 towns in Aklan, two towns in Antique and one barangay in Damayan, Capiz. Akelco owns 2,046 kilometers of primary and secondary transmission lines serviced by 100 highly trained linemen or at a ratio of 1:20 kms. As of 2011 there are 38,200 lifeliners classified as marginalized consumers who will continue to receive subsidies for the next 10 years under RA 10150 recently signed into law by Pres. Benigno C. Aquino.
We have power contract with Green Corp based in Dumaguete City to supply our power needs in Aklan for 36 MW. Because of Electric Power Industry Reform Act (EPIRA), Napocor assets are privatized and subsidized formerly enjoyed by consumers was invariably lost. Nevertheless as a Government Owned and Controlled Corpo-ration (GOCC), we have narrowed our System loss to 9.7, the lowest in Western Visayas, and achieved A+ rating category. Our collection efficiency is 100 percent with P89 million net profit margin, Atty. Peralta stressed.
Atty. Inocencio divulged that consumers in Aklan are facing electrical jolts of 1st and 2nd tranch of power rate increases. The first one occurred just a month ago from P250 – P260 per kwh under Napocor to P485 now under Independent Power Producer (IPP). Obviously, the second jolt will come as Power Sector assets and Liabilities Management Corp (Psalms) realized its demand that National Transmission Corp (Transco) pays its outstanding obligation of $5.87 billion to National Grip Corp of the Philippines (NGCP).
EPIRA law provides that a universal charge will be imposed on all electricity and users for the payment of Napocor’s stranded debt and stranded contract costs. As approved by Energy Regulatory Commission, Psalm will collect 39 centavos per kilowatt hour from each consumer member for a period of 15 years. At least the total cost per kwh will reach P5.24, quite a whooping sum. This means well beyond the paying capacity of ordinary consumers to a single utility firm.
It appears that the total debt of Napocor is $15.8 billion and proceeds from sale of assets or privatization stood at only $264 million from the abyss Napocor cannot do otherwise except to declare insolvency. Given this dire consequences why should ERC require hard working, honest consumer members of cooperatives like Akelco, Capelco, Ileco, and all others to pay for unpaid obligation of Napocor? Why not exhaust other plausible options like channelling government savings incurred during first half of this year in the amount of P2.1 billion to address distress calls of helpless consumers? The former SP member asked.
The power sector industry is governed by EPIRA law which advocates renewable energy sources (solar, wind, hydro, biomass) and provides incentives to independent power producers for healthy competition. After a decade however, these objectives have never been realized namely: reduced power costs and more industry players. As a matter of fact, Lopez, Aboitiz, and Sy families have cornered Napocor’s assets giving rise to monopoly. Moreover, power gene-ration cost of renewable energy, being new technology is very prohibitive like P17.00/kwh for solar and P10.37 – wind.
Based on available data, developing countries of Asia like Malaysia, Thailand, and Vietnam offer lower power rates – 5 to 7 cents/kwh compared to the Philippines’ 16 cents. This is very significant since investors shy away from high production cost, not to mention the inherent corruption and red tape (in the Philippines as what happened to "CALEN" Libacao, Aklan about two years ago).
It is commendable that NGO’s led by Atty. Inocencio of Power Aklan is rallying for active support of all stakeholders for revision of EPIRA law especially in the elimination of government subsidies, privatization program of Napocor’s assets, imposition of VAT, universal charge regardless of power source, absorption of systems’ losses by consumer – members among others. As the power sector becomes indispensable to modern lifestyle, public hearing done by ERC be held more often and accessible to its consumers rather than hold in cloistered, sanitized environments of Metro Manila and Boracay.
Faced with startling realities, consumer-members of Akelco could only lift their eyes to the hills from where their help come (Psalm 121:1-2). In a divine sense, this is true but in secular way, the hills of Libacao, Madalag, and Ibajay offer the best long term solution: hydropower, irrigation, potable water, tourism and fresh water aquaculture. With resoluteness, economic despondency must be routed. The dictum must be: "If there’s a will, there must be a way!
"Power to the people" is a slogan in most street protests. Yet it appears that only the bureaucrats in collusion with a select few appear to lord it over the small fry. NGO’s must play a critical and vital role in bringing about this much needed change. /MP
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