Meralco Takeover Won’t Lower Power Rates

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PUBLISHED ON May 5, 2008 AT 10:10 AM

The Bagong Alyansang Makabayan today expressed serious doubts over the Arroyo government’s efforts to lower power rates by applying pressure on the Lopez-owned distribution firm Meralco.

“The government’s efforts will eventually fall short of the desired effect of lowering power rates. There are more fundamental reforms needed in the power sector and there are concrete steps that can lower power rates that the government is not addressing,” said Bayan secretary general Renato M. Reyes, Jr.

Bayan said that power rates are high because of the policies of deregulation and privatization in the energy sector and the presence of the Value Added Tax on power which is levied on all items in the electricity bill.

“Privatization, deregulation and high taxes on energy are the reasons why power rates are so high. The ‘power play’ being done by the Arroyo government on Meralco may score the President some populist pogi points, but that’s all there is to it. Even the so-called bid of the Arroyo government to take over Meralco will not ensure the lowering of power rates, not when the policies of the EPIRA remain,” Reyes said.

“In fact, the Arroyo government is poised to collect more from the people by passing on Napocor’s questionable stranded debts including the P9 billion WESM transaction that was the result of market power abuse in 2006, as well as the cost of overpriced coal purchases done last year,” Reyes added.

Bayan proposed the immediate lifting of the VAT on power which will save consumers around 10-12% in monthly electric bills. Consumer group People Opposed to Warrantless Electricity Rates (POWER) earlier computed that consumers using up to 200 kWh a month will save P206.

As to Napocor’s reduction of generation rates for Meralco, the group said that this will merely result in added debts for Napocor, similar to the 2003 case of Napocor lowering its PPA by 60%.

Questionable take-over to give rise to new “monopoly”

While generally supportive of the nationalization of the power sector, Bayan said that Arroyo lost a golden opportunity in reforming the energy sector when it signed the Electric Power Industry Reform Act which paved the way for the full privatization and deregulation of the power sector.

“If the Meralco takeover is true, then the Arroyo faction is merely trying to control the power sector for itself and not on behalf of the consumers,” Reyes said.

Bayan cited several “disturbing” conditions in the energy sector today. “The strategic transmission sector or Transco has been privatized and placed under the control of close associates of the Arroyo family. The House energy committee is being chaired by a son of Mrs. Arroyo. Now there talks of Malacañang seeking to get control of Meralco. Is Arroyo seeking some sort of dominant control over the power sector? Is this not a dangerous trend we are seeing?” Reyes asked.

“If the takeover is true, then we will have a new dominant player in the power sector, the Arroyo family and its close associates. Will this situation bring down power rates? We doubt it,” the Bayan leader added.

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2 Responses to “Meralco Takeover Won’t Lower Power Rates”

chris Says:
May 15th, 2008 at 5:00 pm
It’s half-billion-peso stupidity for the government to take over Meralco and I think they know it already. The consumers must get their money back. Pointing fingers is not for the best interest of the people right now. Finding the root of this problem won’t solve it.
kapirasongtinik Says:
May 19th, 2008 at 3:49 pm
http://www.philstar.com/index.php?Bansa&p=50&type=2&sec=54&aid=2008051864

Bansa
Meralco sinusulot ng 3 GMA crony

Monday, May 19, 2008

Tatlong “crony” umano ni Presidente Gloria Arroyo ang nag-aagawan sa pag-take-over sa Meralco.

Ayon kay Bayan Muna Partylist Rep. Teddy Casino ang tatlong ito ang itinu turong “utak” sa demolisyon sa Meralco para magkaroon ng dahilan ng government take-over sa pinakamalaking distribution utility sa bansa at hatiin ito sa tatlong franchise area.

Ang plano ng tatlong malalaking pamilya ay ibinulgar matapos paratangan ni Casino na ang “Cebu Mafia” ang nasa likod ng mga serye ng atake sa pamilya Lopez at sa Meralco. Ginagamit umano ng mga pamilya na ito si Government Service Insurance System (GSIS) president and general manager Winston Garcia upang pataasin ang stake nito sa Meralco at atakihin ang mga polisiya ng nasabing distribution utility.

“Clearly, Winston Garcia has a track record of using his position in GSIS to serve the interests of the Aboitiz group,” ayon naman kay Alliance of Concerned Teachers (ACT) president Antonio Tinio.

Tinukoy din ni Tinio na ang pamilya Aboitiz ay nasa power generation at distribution din, banking, shipping at kilalang supporter at malapit sa Arroyo administration.

Bukod sa pamilyang ito ay pinapaboran din ng Malakanyang ang Alsons Group na kontrolado naman ng pamilyang Alcantara. Si Tomas Alcantara ay kilalang bahagi ng kitchen Cabinet ni Pangulong Arroyo at siya umanong tumatayong lider ng bulong brigade ng Napocor mafia.

Ayon sa mga sources sa industriya ng kuryente at opisyales ng Napocor, ang dalawang grupong ito ang nag-eengganyo sa Mala kanyang na awayin ang kasalukuyang management ng Meralco sa pamamagitan ng pagkakalat ng intriga na ang mga Lopez ang sanhi ng mataas na presyo ng kuryente at hindi ang 12 porsyentong EVAT at ang mataas na singil ng Napocor.

Idinagdag pa nila na ang mga Aboitiz at Alcantara ay naglalaway din sa mga power generating plants na pag-aari ng mga independent power producers (IPP) at gagamitin ang impluwensya nila kay Arroyo upang sungkitin ang mga ito. Bukod sa pagiging kamag-anak ni First Gentleman Mike Arroyo, isa sa mga lalaking Aboitiz ay matalik na kaibigan ni Pangulong Arroyo.

Sinasabi rin ng mga sources sa Philippine Stock Exchange (PSE) na ang nangangasiwa sa pamimili ng Meralco shares ay Vivian Yuchengco, isang stock broker at opisyal ng PSE, at ang ATR Kim Eng ang siya namang dinadaanan ng mga transaksyon.

Upang mapabilis ang paghawan ng Meralco shares, si Diosdado “Buboy” Macapagal at si Enrique Razon ng ICTSI, ang ingatyaman ng partido ni Arroyo, ang siyang ginagawa ngayong bukal ng pera para mamili ng Meralco shares.

Kinondena na ng mga kongresista ang ginagawang maniobra ni Garcia at ang sobrang pakikialam nito sa usapin ng Meralco gayong hindi niya maipaliwanag kung saan nauuwi ang salapi ng GSIS at kung bakit sangkaterbang reklamo na ang ginawa ng mga pensyonado at ng mga kawani na pamahalaan na bumubuhay sa institusyong ito.

Lumilitaw din na bukod pa sa pagiging presidente at General Manager ng GSIS, si Garcia ay umuupo at sumasahod din ng milyun-milyong piso sa ibat-ibang kumpanya na may investment ang GSIS.

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