|
It’s
that time of the year, so we might as well greet the
president of the National Power Corp. (Napocor), Cyril
del Callar, a Happy Valentine’s Day! But from the people
of Mindanao and Eastern Visayas and their
representatives in Congress who are also members of the
Joint Congressional Power Commission (CPC), the same
message of love would surely be delivered to del Callar
with all the sarcasm they could possibly muster.
It seems
that del Callar has gone overboard in committing the
Napocor in two “sweetheart” contracts that would be
highly disadvantageous not only to the government but
also to the power consumers of the South who, until
these contracts were signed, have traditionally been
enjoying lower power rates than their counterparts in
Luzon.
And even
as we mull this thing over, certain quarters are already
thinking of suing del Callar for violating provisions of
the Electric Power Industry Reform Act (Epira).
The two
controversial contracts include the one signed with the
private joint-venture firm Kephilco (Korean Electric
Power Corp.)-Salcon Power Corp. In this contract (or
memorandum of agreement as it is called), Napocor has
assured the joint-venture firm of a market for its
soon-to-be-built 200-megawatt coal-fired power plant in
Naga,
Cebu
City.
Napocor guarantees that it will share with
Kephilco-Salcon all its supply contracts with
power-distribution firms. On top of this, the
government-owned National Transmission Corp. has also
committed to buy from Kephilco-Salcon its requirements
for ancillary power for reserve and backup.
The
other contract signed by
del Callar was with the privately owned Lanao Hydro
Development Corp. In this one, Napocor has practically
assumed the role of a selling agent for Lanao Hydro by
committing to pay P4.32 per kilowatt hour for all the
electricity generated by the proposed Agus 3 project for
distribution to utilities and private investors.
What has
particularly riled the members of the CPC (their cup
really runneth over for del Callar) was the move of
Napocor to act as middleman, which they say can only
result in higher rates for Mindanao power-users. The two
contracts, they charge, were entered into by Napocor on
the sly, or after Congress had adjourned for the
elections, to escape legislative scrutiny.
What’s
alarming is the rather brazen way Napocor has allowed
Lanao Hydro to raise the price of hydro power to the
much higher price level of power from diesel-fueled
generation plants. At P4.32 per kWh, the price agreed on
by both parties, would be more than double the rate
approved by the Energy Regulatory Commission for hydro
power, which is only P2.1030 per kWh.
Any high
school student knows that hydro-electric power is always
cheaper than power from diesel-fed generation plants.
But because of Napocor’s commitment (how Mindanao
residents by now must adore del Callar) to Lanao Hydro,
Visayas and Mindanao power consumers would now have to
suffer an additional P240 in their monthly power bills
(at the rate of P0.12 more per kWh, for an average
consumption of 200 kWh per month). Del Callar’s
justification? Napocor will generate some P120 million
in marketing fees. In effect, therefore, the consumers
will be shouldering the additional income being eyed by
Napocor.
It’s
quite obvious that Napocor, in its contract with
Kephilco-Salcon, has acted way beyond its mandate as far
as the selling of generated electricity is concerned.
Section 47 of the Epira provides that Napocor may
generate and sell electricity only from the undisposed
generating assets and IPP (independent power producers)
contracts entered into by the Power Sector Assets and
Liabilities Management Corp. (Psalm). Under the new
contracts signed by del Callar, the Epira prohibition is
totally ignored.
There
are other issues besides the ones already cited, such as
the lack of transparency in the way the contracts have
been drawn up and the way Napocor has effectively
discarded the requirement for public bidding for
contracts of such enormous value.
Such
issues will sooner or later surely explode in the faces
of those running roughshod over our existing laws, but
for the meantime, we cannot help but maliciously
ask—what roles, if any, did two former top power-sector
officials play in the consummation of these two highly
irregular contracts?
We are
referring, of course, to Asisclo Gonzaga, former Transco
president who signed the controversial Impsa deal; and
Jose Samonte, former Napocor official. It would be nice
to be reassured that they didn’t have a hand in these
contracts because they are both incorporators of Lanao
Hydro.
Meanwhile, should we also greet these two a Happy
Valentine’s Day?
E-mail:
Omerta_bdc@yahoo.com |
