GOOFED BUT NOT ON MY WATCH, SAYS NOY
[PHOTO
-President Aquino greets participants at the Philippine Investment
Forum yesterday. The forum brought together government officials, top Filipino
business executives and local and foreign investors to offer a global audience a
balanced perspective on investing in the Philippines)]
MANILA, MARCH 29,
2012 (PHILSTAR) By Aurea Calica -
Malacañang is open to discussing proposals by some lawmakers to grant
emergency powers to President Aquino to deal with the power crisis in Mindanao.
"We will have to study the proposal when filed in the Lower House," deputy
presidential spokesperson Abigail Valte said yesterday.
"As of the present time, the power situation is being addressed by the
Department of Energy with the stakeholders in Mindanao."
Energy Secretary Jose Rene Almendras also said he is open to giving Aquino
emergency powers to resolve the crisis.
The President, speaking at the Euromoney Philippine Investment Forum in
Makati City, said the Philippines is likely to meet the projected increase in
demand for electricity sooner than expected through the government's national
renewable energy program.
Aquino has appealed to the public to give the government more time to solve
the power crisis, saying previous administrations had long neglected problems in
the power sector.
The President told the forum that the country would need 15,500 megawatts by
2030, and that so far, more than 7,000 MW worth of service contracts had been
approved.
"Pending applications (cover) around 3,771 megawatts together with the
installed capacity of about 5,000 (MW)… It seems to be a clear path already to
attaining that needed energy by 2030 even in the next perhaps three to four or
five years," Aquino said.
"We will be ready when that demand comes in... hopefully this will also be
the factor – that there is an increase in store generation capacity – that will
bring down the prices of electricity," he said.
Almendras, meanwhile, said emergency powers for the President should also
mean allowing state-run agencies to engage in power supply contracts, an
arrangement currently prohibited under the Electric Power Industry Reform Act
(EPIRA) of 2001.
"We will recommend that for a limited period of time," he said. "I want to
understand first what the special power they want to give him."
To dispel accusations that the government is doing nothing on the situation
in Mindanao, Almendras said the government has already started a P2.6-billion
rehabilitation for Agus Hydro Power Complex in Mindanao.
He also scored some sectors that said the government is doing nothing to
address the matter, saying the present administration is doing everything to
make sure there is enough power in the whole country.
At the House of Representatives on Monday, Eastern Samar Rep. Ben Evardone,
chairman of the House committee on public information, warned of more damage to
the economy and to the image of the country if the widespread blackouts in
Mindanao persist.
"The situation could be considered urgent and critical that needs swift
action from the President," he said. "Many of us in the administration bloc are
willing to support moves to grant the President emergency powers if necessary."
Ang Kasangga party-list Rep. Teodorico Haresco, vice chairman of the House
committee on small business and entrepreneurship development, and Negros
Occidental Rep. Albee Benitez also voiced support for calls to give Aquino more
muscle in addressing the power crisis in Mindanao.
"We cannot just flick our fingers and command the Department of Energy to
correct the imbalance between demand and supply of energy. This administration
is barely two years old and the Mindanao energy problem has been there since
three decades ago," Haresco said.
Davao City Rep. Karlo Alexei Nograles, who earlier aired suspicion that the
power crisis could be artificial, said he supports emergency powers for Aquino
"provided that it is clear why it (emergency powers) is needed."
'Standby powers'
For Sen. Francis Escudero, what President Aquino needs to address the power
crisis is not only emergency powers but "standby powers" with no need for
congressional approval.
Escudero said his proposal may be introduced as an amendment to Republic Act
9136 or EPIRA.
"It should be standby powers so that there is no need to pass a new law
authorizing such each time there is a crisis," Escudero said.
"For me, it's a crisis situation in Mindanao already. We are okay in Metro
Manila because we don't feel it. But in Mindanao, we are talking of two to four
hours a day (of blackouts). Definitely, the economy and business are affected
already. (The power crisis) will worsen the way of conducting business there,
especially since many of our fellow countrymen who are poor are in Mindanao,"
Escudero told The STAR.
Apart from Escudero, Senators Serge Osmeña III and Antonio Trillanes IV are
also open to the idea of granting Aquino special powers.
With standby powers, Escudero said the President can easily enlist the
support of concerned agencies in any move to interfere in the market, possibly
in imposing price caps.
"There are proposals that the government should buy the power barges to be
able to implement concessionaire rates. But under EPIRA, that is not allowed
since power service is already being privatized. The most you can do is to delay
privatization," Escudero explained. "With emergency standby powers, just on the
interim, that one as an example, the President can interfere in the market."
He said government's imposing cap on prices would stop monopolistic
tendencies and abuse of power by certain providers and distributors.
Allaying fears of abuse, Escudero said Congress can always provide safeguards
like limiting the exercise of such special powers to a certain timeframe.
Trillanes, in a text message, said he is already drafting a bill on granting
emergency powers to the President "similar to what was given to (former
President) FVR (Fidel Ramos) but with necessary safeguards to make sure that we
don't commit the same mistakes."
Osmeña, chairman of the Senate committee on energy, noted that the President
is already vested under the EPIRA with emergency powers to seek ways to raise
generation capacity but only after approval from Congress.
Call for unity
Meanwhile, Sen. Aquilino Pimentel III is calling on fellow legislators from
Mindanao to "come together at the soonest possible time and thresh out solutions
that can be implemented immediately."
"The power outages are not only worsening in Mindanao, there are indications
that we will be suffering up to eight-hour power interruptions for a year or
two," Pimentel said in a statement.
"We can already predict that this will lead to a sharp decline in economic
activity that may lead to losses of jobs and livelihood. This will heighten
poverty in some Mindanao provinces and may create pressures that may spark
disruptions in Mindanao's peace and order situation," Pimentel added.
He said the lack of permanent government measures to raise and stabilize
supply has made the power crisis worse and driven away investors.
For his part, Sen. Panfilo Lacson said he is wary about giving the President
emergency powers even as he raised suspicion regarding the real cause of the
problem.
"The power shortage in Mindanao is a result of years, if not decades, of
neglect. Sometimes there is basis to suspect that the crisis has been
stage-managed because of corporate greed and cronyism. As usual, it is the
people who will suffer," Lacson said in a text message to the Senate media.
A militant, meanwhile, said Aquino does not need emergency powers from
Congress to put an end to the power crisis in Mindanao.
"It appears that there is enough power supply in the south. The blackouts are
an issue of transmission and distribution, which the President can resolve with
his broad executive powers," Bayan Muna party-list Rep. Teddy Casiño said.
He said what is needed is political will on the part of the government.
He pointed out that the "knee-jerk" reaction of some Aquino allies to the
Mindanao blackouts could lead to "Ramos-style emergency power palliative that
could further aggravate the problem."
He was referring to emergency powers Congress gave then President Ramos to
tackle frequent blackouts during his term.
The Ramos government skipped the strict requirements of public bidding in
contracting private investors to build power plants. Investors were assured of
payment for full plant capacity, whether such capacity was dispatched or not.
Such an arrangement resulted in the high cost of electricity.
Casiño said Aquino should be wary of possible manipulators and saboteurs in
the power industry who want the government to enter into contracts similar to
those negotiated by the Ramos administration.
Casiño said the President should look into the claim of Mindanao Development
Authority chair Luwalhati Antonino that certain companies in the power industry
are manipulating supply in Mindanao to force electricity rates up.
As a long-term solution, he proposed the rehabilitation and expansion of the
three hydroelectric power plants along the Agus River in the Lanao area.
Additionally, the government can build solar power plants, which take a lot
less time to construct than those run by coal or oil and which are more
environment-friendly, he said.
More burden
Electricity consumers in Mindanao will have to bear the brunt of a 50- to
80-centavo per kilowatt-hour (kwh) centavo hike in generation charge as
expensive diesel and bunker oil-fueled plants will be used to plug the supply
shortfall.
But power supply will decrease anew in April when a month-long emergency
repair of the 120-megawatt Pulangi 4 hydroelectic power plant begins, officials
said.
"The only way to solve the shortage is to bring in power that is more
expensive... until 2014 when the new power plant will come onboard that is
cheaper than diesel or bunker (fueled plants)," Almendras said.
To date, generation cost – which excludes transmission and distribution
charges of the grid operator and local utility firms – is at P2.90 to P3.20 per
kwh, data from the DOE show.
"Today there is still 100 MW coming from a power barge that is not being
dispatched because it is not contracted," Almendras said.
Meanwhile, the government will conduct an emergency repair of the Pulangui
hydropower plant in Bukidnon. This is expected to further lessen supply in
Mindanao.
"We will continue to experience the present levels of shortages up to May 9.
We did not predict the need to shut down Pulangui" Almendras said. With Christina Mendez, Jess Diaz, Neil Jerome Morales
FROM THE TRIBUNE
Noynoy admits gov't goofed on power but not on his watch
By Rocky G. Nazareno 03/27/2012
President Aquino admitted that the government was at fault for the
worsening power supply situation in Mindanao but the catch is that past
presidents, and not he, should be blamed.
Aquino admitted that signs of a looming power crisis in Mindanao may have
gone neglected and it may even take as long as 30 months before repairs for a
major hydroelectric plant and the construction of two coal-fired plants are
completed.
"As what was in the papers, there is a problem about the power in Mindanao.
Let's admit it, it was neglected," Aquino said in a speech during the birthday
celebration of Cavite Rep. Erineo "Ayong" Maliksi Sunday night.
He explained that the delay in the implementation of repair work on units 1
and 2 of the Agus 6 hydroelectric plant, which produces a total of 75 megawatts
(MW), may have been due to the high costs that was needed to undertake its
rehabilitation.
"If you notice, we're not talking about thousands or millions of pesos. (The
repair work) is in the billions — P2.6 billion to repair units 1 and 2," Aquino
said.
He added that Agus 6, which is located in Fuentes, Iligan City, was
commissioned in 1953 and has provided the region with power for the last 59
years.
"(Agus) has adequately served us and it is about time to replace (vital
parts). In short, it now needs to be fixed," the Chief Executive added.
According to him, the power crisis has left him wondering if adequate repairs
had been done on Agus 6 as early as 30 years ago, "I wouldn't have this
problem."
The two Agus 6 units were guaranteed to go on without repairs for 30 years or
in 1983 before vital components should have been replaced. And yet, the
country's past presidents, including Mr. Aquino's mother Corazon Aquino, did not
order its rehabilitation.
But he said, "there is a problem with power shortage in Mindanao and what has
been done to address it is not enough."
Mr. Aquino pointed out that there are short-term solutions available in
additional barges and more hydro-electric plants. But the costs for energy
generated from these power plants would be higher compared to coal-fired and
diesel-powered plants.
As it is, electricity sourced from the barges are at P14 per kilowatt hour
(kwh) which is a lot more expensive than the P3 per kwh from diesel-powered
plants while electricity from coal-fired plants is expected to cost less.
"So if we don't want brownouts, we just have to accept this (the higher costs
of electricity from the barges) until the construction of two coal-fired plants
are completed in two years," Aquino said.
Presidential spokesman Edwin Lacierda, in his press briefing yesterday,
revealed that among the initial solutions to the higher costs of electricity
would be "mandatory curtailment" where the use of power would stretched along a
certain line of more areas that will result in lesser brownouts and the mix of
electricity drawn from barges and hydro-electric plants for cheaper electricity.
The President also underscored that the solution to Mindanao's crippling
power crisis is not "as easy as changing a light bulb."
"We're going to change components in a hydro-electric plant. The
coal-generating plants is all land as of now. We have to level the land before
we could put up the building," he explained.
But the President was candid enough to admit that "these are the facts and it
will take long before we can fix the problem.
"I cannot tell you that I could not fix this problem because it came about
even before my term. But what I can promise you is we're doing something about
this and we cannot always tell our countrymen to be more patient," he said.
The President added that "it is the government's job to see to it that the
people's patience is not always tested like this."
Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
All
rights reserved
PHILIPPINE
HEADLINE NEWS ONLINE [PHNO] WEBSITE
[Non-text portions of this message have been removed]
------------------------------------
-------------------------------------------------------------
Follow us on Twitter: http://twitter.com/phnotweet
This is the PHILIPPINE HEADLINE NEWS ONLINE (PHNO) Mailing List.
To stop receiving our news items, please send a blank e-mail addressed to: phno-unsubscribe@yahoogroups.com
Please visit our homepage at: http://www.newsflash.org/
(c) Copyright 2009. All rights reserved.
-------------------------------------------------------------Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/phno/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/phno/join
(Yahoo! ID required)
<*> To change settings via email:
phno-digest@yahoogroups.com
phno-fullfeatured@yahoogroups.com
<*> To unsubscribe from this group, send an email to:
phno-unsubscribe@yahoogroups.com
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
