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Malacañang on Wednesday asserted that it has no plans to
takeover the Manila Electric Co. (Meralco) and that
efforts being undertaken by the government involving the
public-utility company are geared toward reduced
electricity cost in the country.
Executive Secretary Eduardo Ermita said in his weekly
news briefing that just because the Government Service
Insurance System (GSIS) is behind moves to compel
Meralco to disclose its books and to seek a change in
its management, it does not follow that Malacañang
orchestrated the entire thing.
“Just
because they [GSIS] are with the government does not
mean that they are being directed to do what they are
doing just because there is an intention to takeover.
It’s not the intention of the President to have a
takeover,” Ermita said.
Asked if
the government is capable of taking over Meralco, Ermita
said that while “the government always has the
capability to run such a public utility,” such an
undertaking is not in the works.
“It’s
just like taking over the operation of the international
airport. We will always be in a position to take over.
So capability-wise, yes but there’s no intention…nothing
leading to it anyway,” Ermita said.
He said
the only guideline of the government is “how to
influence the situation so we can bring down electricity
rates,” which is why the President earlier directed the
Department of Trade and Industry to file several
petitions before the Energy Regulatory Commission.
Ermita
said that Malacañang has no guidelines for the GSIS or
other government corporations that have a stake in
Meralco regarding its forthcoming shareholders’ meeting
on May 27.
“They do
not have to receive any guidelines from the Palace....I
think they will reach an understanding. Meralco is aware
of the problem, they know the sentiment of the
government corporations,” he said.
Meanwhile, in an effort to cushion the impact of high
electricity rates, a legislator is seeking the repeal of
a provision of the law allowing the power sector to pass
on system losses to consumers.
Kabalikat ng Malayang Pilipino Rep. Amado Bagatsing of
Manila filed on Wednesday House Bill 4073 to repeal
Republic Act 7832, or the Antielectricity and Electric
Transmission Lines-Materials Pilferage Act of 1994.
In his
explanatory note, Bagatsing said while the law provides
that distribution utilities may pass on to the consumers
up to 9.5 percent of their system losses, consumers have
been hit hard “as this component is a big percentage in
their monthly bills.”
“We now
feel that distribution utilities have been unjust and
unreasonable in continuously passing on their losses to
the consumers while they remain remiss in putting up
controls to plug pilferage. This even has the effect of
class legislation, giving such distribution utilities to
recover their loss by passing on to consumers,”
Bagatsing said.
He said
there were other public utilities which also suffered
losses but were never given the chance to pass it on to
end-users.
Relatedly, a proadministration legislator scored
opposition lawmakers for taking the cudgels up for
Meralco and politicizing the government’s call for
transparency in the operations of the power-distribution
utility accused of overcharging its customers.
“To
defend Meralco, whose high rates are making life doubly
hard for our people, runs against the grain of many of
my colleagues’ avowed stance in the past,” said Liberal
Party Rep. Danilo Suarez of Quezon.
Suarez
said the government, as well as the GSIS, merely wanted
to lower power rates in areas serviced by Meralco by
insisting that good corporate practices be strictly
adhered to by the company.
Meanwhile, a Davao City councilor scored the move of
President Arroyo in asking the cash-strapped Napocor to
reduce the price of the electricity it supplies to
Meralco.
Saying
that it was an act to gain “ganda points,”
Councilor Peter Laviña said that it would be the entire
nation that would pay for whatever losses Napocor would
incur to subsidize the Meralco, whose franchise covers
only Metro Manila, and certain areas in Luzon.
“Why
should Juan in Mindanao, and Pedro, in the Visayas pay
for the electric bills of John who is living in posh
Makati,” he said
President Arroyo directed Napocor last week to reduce
its charges on Meralco but Sen. Joker Arroyo immediately
shot down the move, warning that this would cause heavy
losses for the debt-ridden Napocor.
“Any
such loss would be naturally shouldered by the
government, which the entire nation would have to pay in
form of higher taxes,” said Laviña, who chairs the City
Council’s Committee on Trade, Commerce and Industry.
(With M. Cayon) |
