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    Editorials:

    Illustration by Jimbo Albano

    Consumer welfare should be paramount

    THE Joint Congressional Power Commission convenes today, Monday, to inquire into high electricity rates. The Senate panel is headed by Sen. Miriam Defensor-Santiago, who makes no secret of her support for the Arroyo administration, while the House panel is headed by presidential son Pampanga Rep. Mikey Arroyo. Thus, given the fact that the inquiry will be headed by two proadministration legislators, the apprehension is that it is likely to be an outright political exercise that could end up laying the blame solely on the Lopez-owned Manila Electric Co. (Meralco) for prevailing prohibitive power rates.

    Which, of course, would be a pity, because, from where we stand, if the intention is to really bring down high power costs, then we should be looking at the entire process, and not just at the distribution component.

    That process starts with power generation, which is the function of the National Power Corp., or Napocor. The state-owned firm is accused before the Office of the Ombudsman of overpricing its coal procurement for its various power plants. It is also facing allegations of price manipulation in the Wholesale Electricity Spot Market. Of late, the Energy Regulatory Commission is also asking Napocor to explain why it has overcharged power distributors to the tune of P10 billion since July 2006.

    For its part, Meralco stands accused of charging customers for system losses in excess of that allowed by law. It has also not been transparent in its dealings, according to Government Service Insurance System (GSIS) president Winston Garcia, who sits on the Meralco board since the state insurance fund along with a few other government-owned corporations now own up to a third of the power-distribution firm. All eyes, therefore, would be on Meralco’s annual stockholders’ meeting on May 27, to see if GSIS would move to take management control from the Lopez family. The prospect of a government takeover of Meralco, however, does not sit well with many people, who see this as inconsistent with the government’s privatization thrust and hold that it isn’t the government’s business to be running a business.

    Meanwhile, our monthly electric bill does not only reflect charges in power generation, transmission and distribution, but also a hefty 12- percent value-added tax. While the government faces a growing clamor from various quarters to scrap, even if temporarily, the tax on electricity consumption, it doesn’t look like it is amenable at all to the idea.

    So, when the Joint Congressional Power Commission starts its hearings today, we hope it is an honest-to-goodness effort to look objectively at the situation, and seek ways to really bring down our monthly electric bills. It’s bad enough that the country holds the dubious distinction of having the second-highest electricity rates in Asia after Japan. What’s worse is to make consumer welfare and public interest take a back seat to partisan politics.

     

    Peace talks in peril

    DON’T look now, but with the first batch of Malaysian peacekeepers already gone from Mindanao, we face the unwholesome prospect of yet another round of armed conflict between government forces and the Moro Islamic Liberation Front (MILF) if the impasse in the peace negotiations drags on.

    And we face dire consequences for a resumption of armed conflict: bloodshed on both sides, displacement of innocent civilians and missed opportunities in economic and social development.

    The supreme irony, of course, is that Mindanao sits on vast natural wealth, and yet, the Muslim population remains trapped in abject poverty. The 1996 comprehensive peace agreement between the government and the Moro National Liberation Front (MNLF) gave birth to the Autonomous Region in Muslim Mindanao, but the promise of a better life remains just that—a promise with no hope of immediate fulfillment.

    The GRP-MILF peace talks have bogged down on the crucial issue of ancestral domain. The MILF wants enough territory it can effectively administer, but the government balks at the idea of a Bangsamoro homeland that would clash with national sovereignty and the territorial integrity of the republic. Result: The talks have been deadlocked despite Malaysian brokering efforts, with no chance that the two sides will face each other across the negotiating table soon.

    Meanwhile, the 12,000-strong MILF appears to be consolidating its forces in various camps in central Mindanao while a cease-fire forged in 2004 is in place. The Malaysian-led International Monitoring Team had kept the two sides from lunging at each other’s throats, but with Malaysia having thrown up its hands in disgust over the lack of progress in the peace talks, the threat of a full-scale shooting war hangs like a dark cloud over the whole of Mindanao.

    The problem is, the government insists on a peace agreement within the confines of the current constitution. The way out, according to Sen. Aquilino Pimentel Jr., could be a federal system of government where Muslim Mindanao could make its own laws and manage its own affairs. That would require constitutional change that is viewed with much suspicion because it could be hijacked by politicians with hidden political agenda. But we may have to go through the tedious political exercise if only to end the fighting and bring lasting peace and progress to Mindanao.

    OTHER STORIES
    Editorial: Consumer welfare should be paramount

    THE Joint Congressional Power Commission convenes today, Monday, to inquire into high electricity rates. The Senate panel is headed by Sen. Miriam Defensor-Santiago, who makes no secret of her support for the Arroyo administration, while the House panel is headed by presidential son Pampanga Rep. Mikey Arroyo.

    read more

    Through the Looking Glass: Power grabs and baseless charges

    BY power grab, we mean the manipulation of sleeping funds to raid profitable enterprises, eventually to resell to interests lurking in the shadows. There are precedents in this gambit, utilized when the hierarchy controls dormant pensions contributed by taxpayers and government employees.

    read more

    Coast-to-Coast: Meralco’s plight; Qatar’s flight

    IT is well that everybody, including the protagonists in what is now being touted as the biggest and, by the looks of it, the most acrimonious corporate battle in recent memory over the country’s biggest power-distribution utility, Manila Electric Co. (Meralco), have agreed on a common objective—reduce the power rates in the country.

    read more

    Personal Finance: The pressures of education

    A FEW days ago I was a guest at Shop Talk, a show on ANC. I may be a Registered Financial Planner and a Personal Finance Educator and all that, but I guess what really qualifies me on the subject is my being a parent to four wonderful kids—two girls (Billie and Gabbie) and two boys (Riggs and Chino).

    read more

    The Entrepreneur: Agriculture as engine of growth—Part 2

    FORESIGHT has served me well in private business. This is why I firmly believe that preparing for the future will also serve our country well. And another lesson in business that should also be an important part of governance is that there are opportunities in times of crisis.

    read more

    Reflections from the Mirror: Unanswered questions

    NOW that the issue involving Manila Electric Co. (Meralco) has become the talk of the town, there is one aspect that I think should be brought out in the open so we can have a clear and total picture of Meralco’s operations. I refer to the collection of water-meter deposits which I understand is around P3,000 per meter, subject to refund once the user gives up the contract.

    read more