Privatize Napocor and Electric Rates Will Be Reasonable

PRESS STATEMENT

Cong. Teofisto “TG” Guingona III

2nd District, Bukidnon

May 5, 2008

Privatize Napocor and Electric Rates Will Be Reasonable

All of us, whether Administration or Opposition, want electric rates to go down. But do you know that generation charges make up sixty percent (60%) of our total electric bill? So, if we bring down our generation charge, we will bring down our total electric bill dramatically. The solution is in implementing the EPIRA law. EPIRA mandates that by 2009, seventy percent (70%) of NPC owned or controlled electric generating capacity should be privatized[1].

One of the purposes of EPIRA was to ensure affordability of supply of electric power[2], as well as transparent and reasonable rates, through a regime of free and fair competition[3]. Today, seven (7) years after EPIRA has become a law, NAPOCOR still owns or controls seventy percent (70%) of generating capacity. Prior to EPIRA, it owned or controlled ninety-five percent (95%) of generating capacity. This means that it took them seven (7) years to privatize twenty-five percent (25%). This is obviously too slow.

That is where the cause of high electric rates lies: monopolistic dominance of NAPOCOR of the generation of electricity. The evil of this monopolistic dominance is obvious.

Tingnan na lang natin yung nangyari sa WESM noong Agosto 2006[4]. Itong WESM ay isang palangke, pero sa halip na pagkain ang ibinibenta, kuryente ang ipinagbibili. Nahuli ng manager ng palengke ang NAPOCOR na nagbigay ng instruksyon sa kanyang mga planta na kailangang magkasabwatan sa pagtaas ng presyo ng kuryente. Parang pumunta ka sa palengke at gusto mong bumili ng galunggong. Sa palengkeng iyon, tatlo lang ang tinderang nagbebenta ng galunggong, si Neneng, si Selya, at si Doray. Wala nang iba. Pagdating mo sa palengke, napansin mo na napakataas ang kanilang presyo at pare-pareho. Yung pala, magkapatid sila at ang kanilang ama ay si NAPOCOR. Nadiktahan sila ng kanilang ama. Ganoon din po sa kuryente, nakakadikta ang NAPOCOR ng presyo ng kuryente sapagkat ito ang may-ari o kontrolado niya ang pitumpong porsiyento (70%) nito.

The solution to lower electricity rates is genuine competition amongst private generation companies in a regime of free and fair competition on a level playing field.

Privatize NAPOCOR and electricity rates will be reasonable.

[1] sec. 47-I, EPIRA

[2] sec. 2-b, EPIRA

[3] sec. 2-c, EPIRA

[4] Market Surveillance Committee Report, dated Nov. 20, 2006, addressed to the Board of the Philippine Electric Market.

Advertisements