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DESCRIBING its efforts as simply meant to help bring
down prices of electricity within the franchise area of
the Manila Electric Co. (Meralco), the Government
Service Insurance System (GSIS) revealed it is now
thoroughly reviewing the contracts entered into by the
country’s largest power distributor.
“Our
goal is to eventually lower power rates by as much as P2
per kilowatt-hour [kWh] to P3/kWh, and this can be done
by reviewing Meralco’s contracts with its independent
power producers [IPPs],” said the GSIS spokesperson,
lawyer Estrellita Elamparo, in an interview at the
weekend.
Elamparo
said these allegedly onerous contracts have resulted in
higher purchased-power costs.
In its
annual stockholders’ meeting on May 27, GSIS and the
Lopezes are expected to vie for control of Meralco in
the climax to a weeks-long public word war between GSIS
chief Winston Garcia and the Lopez family that has
controlled Meralco since its inception, except for the
years under Ferdinand Marcos’ martial rule.
Deflecting allegations that Garcia is the
administration’s political torpedo against the Lopez
Group, Malacañang reiterated Sunday it will not
influence the position to be taken by government
corporations at Tuesday’s Meralco stockholders’ meeting.
Chief
Presidential Counsel Sergio Apostol said the Executive’s
position on differences between Meralco and Garcia on
the power-rates issue is still under study by the
economic managers, on instructions of President Arroyo.
Asked
about the stockholders’ meeting, Apostol said: “We
assured that there will be no last-minute consultation
with anybody. The Palace will not interfere. We will
just wait and see.”
He added
that the “economic task force” led by Finance Secretary
Margarito Teves “is handling the matter and there is no
decision yet.”
Teves
had earlier said the study Group may need two weeks or
more to deliberate on the issue, and promised to be
impartial in reviewing the positions of Meralco and
Garcia.
Apostol
also declined comment on reports that the Commission on
Audit (COA) has not yet audited Meralco’s financial
books for 2003, as ordered by the Supreme Court in 2006.
“This is
an intercorporate matter. Let us leave it to them....It
is difficult to comment on that because it could be
misconstrued as the Executive favoring [one party] or
meddling. Let us just let the parties involved resolve
this,” Apostol said.
Asked
about Garcia’s move to have the stockholders’ meeting
aired live on television, Apostol said it seemed to be a
good suggestion, since it involves an issue of public
interest.
GSIS and
other government financial institutions in the Meralco
board hold 33 percent of the power firm.
GSIS
lawyer Elamparo alleged that Meralco management is
deliberately delaying the announcement of the result of
the proxy votes as part of their strategy to retain
control of the management.
Elamparo
said newly appointed corporate secretary Anthony Rosete
has not given a time frame as to when he plans to
release the results of the proxy vote.
Rosete
replaced former Justice Jose Vitug, who resigned as
corporate secretary on Friday, citing a word war with
Garcia.
“We see
the delay in the announcement of results as part of
Meralco’s ploy to allegedly deprive us of the
opportunity to object. We can appeal, but we still don’t
know the results that they are delaying,” Elamparo said.
She said
GSIS is not out to take majority control of Meralco, and
they only want a “more efficient and professional
management.”
The
Lopez Group, through First Philippine Holdings Corp.,
owns 33.4 percent of Meralco. Oscar M. Lopez, chairman
of First Philippine Holdings Corp., said that breaking
down the franchise of 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 Garcia] is
an interesting concept,” Lopez said.
If
Meralco is split into different concessions, there is a
tendency for suppliers to demand a higher price for the
power they supply to the concessions.
Alluding
to government’s “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.” |
