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LAWMAKER on Thursday called on the government to stop
the planned sale of the National Transmission Corp.
(Transco) pending review of the Electric Power Industry
Reform Act (Epira).
“We’re
selling off the crown jewels of our energy sector as if
we’re conducting a bargain sale, but just as Epira,
which promised lower electricity costs that only
resulted in higher prices, these precious assets are
being bargained for a song,” said Independent Rep.
Carlos Padilla of Nueva Vizcaya.
Padilla
said reports of alleged rigging in the scheduled
December 12 bidding of Transco have all the more made it
imperative to suspend the planned privatization.
“What I
propose is that Congress first review the Epira for
possible amendments before we embark on these rushed
sales of generating plants and the transmission grid. Epira
was passed in 2001 under the promise of bringing down
prices of electricity all over the country, but it is
the opposite that materialized. What assurance can the
people have now that the continuance of this policy of
privatizing everything will promote consumer welfare?”
Padilla asked.
Padilla
compared the privatization of power generation and
transmission with the sale of the Metropolitan
Waterworks and Sewerage System during the watch of
former President Fidel Ramos’s time.
“At
first, the price of water service in Metro Manila went
down, but by the third year, it had already increased,
and now, the water service rates have become prohibitive
owing to unabated upward adjustments,” he explained.
“In the
case of Transco, it is considered the biggest crown
jewel of the government-owned energy assets because it
earns $400 million a year, as presently run by the
public sector. Why is there a mad rush to sell Transco,
and why are there persistent noises about rigging the
bids to favor certain powerful interests?” Padilla
asked.
“It is
not as if the country would have a nationwide blackout
if we were not to sell off Transco. As is, where is, it
is doing relatively well, and if the private sector
wants to come in, they must pay the best price for a
grid that could be used both for power and
telecommunications, among others,” Padilla added.
Padilla
also suggests that Congress, through the power
commission and other relevant committees, should first
require the Power Assets and Liabilities Management
Corp. to justify the sale and come up with a fair
valuation of Transco’s assets, as well as its expanded
opportunity value, to include telecommunications usage
and other uses other than mere electric power
transmission.
“Only
after such proper due diligence is satisfied, and after
the Epira has been reviewed by Congress, should we make
a decision whether to sell or not, and if so, what
should be the floor price. Otherwise, we may end up
filling the pockets of a few, at the expense once again
of Juan de la Cruz,” Padilla said. |
