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SIMILAR
to what the government did in the water utilities,
breaking down the franchise of the Manila Electric Co. (Meralco)
into concessions will not guarantee that power rates
will be brought down to a comfortable level for
consumers.
At the
very least, “it [breaking down or splitting Meralco’s
franchise area to concessions as suggested by Winston
Garcia, president of Government Service Insurance
System] is an interesting concept,” Oscar M. Lopez,
chairman of First Philippine Holdings Corp., told
reporters at the sidelines of First Gen Corp.’s Annual
Stockholders’ Meeting.
The FPHC
official said, however, it is not a guarantee that
prices will go down.
“There
are too many steps to be taken in bringing down the
rates, particularly in making power plants that use
local fuel more competitive. And most of the old plants
that come up most expensive today are due to the
expanded value-added tax and high royalties on
indigenous fuel sources,” said Lopez. A source, who
requested anonymity, said competition among suppliers
somewhat brings prices down, with Meralco having a good
foothold of the power distribution system in Manila.
If
Meralco is split into different concessions, there is a
tendency for the suppliers to demand a higher price for
the power they supply to the concessions.
Alluding
to government’s thinly veiled threats of revoking
Meralco’s franchise, Lopez said they (government) can do
anything. “Of course, all we can say is there are laws
and we will fight by the law. It’s up to them.”
Lopez
clarified that his challenge for the government to buy
out their share was partly in jest and out of
frustration. “And at the right price we can sell,” said
Lopez adding that everything should be done properly and
that they could get some investment banker, after
Meralco’s May 27 shareholders’ meeting, to take a look
at this whole prospect of selling.
Lopez
said recent developments have certainly affected
Meralco’s share price, but as long as it does its work
well, it can survive. “It has survived all these years.
It has survived Martial Law, and it will survive again
despite all the attacks against it,” he stressed.
“Whatever was done then was under duress. Everything
under Martial Law was done under duress. Though what has
happened before [during the Marcos era] has yet to
happen again, it could,” said Lopez. He earlier
expressed doubts on the government’s capability to run
Meralco.
Lopez
said if the government thinks it can do a better job in
Meralco, “it can go ahead and buy us out. But looking at
how Napocor [National Power Corp.] has and is still
being mismanaged, I have my doubts the government can do
a better job.”
Lopez
said he was not interested in meeting Garcia “since
there is nothing more to talk about. I refuse to be
drawn into Garcia’s publicity game.”
Lopez
also reacted to Garcia’s and Press Secretary Ignacio
Bunye’s statements that all they want from Meralco is
transparency.
“Meralco
had been as transparent as the law requires it to be. If
there is anything wrong at all, it is the fact that
Meralco is even overregulated,” said Lopez, adding that
the Energy Regulatory Commission, Securities and
Exchange Commission and Commission on Audit go through
all of Meralco’s books and transaction records all the
time. |
