Battling for cheaper power

By Herbert Vego          

AS reported in this paper, the Iloilo City council, through councilor Romel Duron, had filed a resolution half a year ago (in January 2024), urging President Ferdinand Marcos Jr. to certify the urgency of passing a law amending certain provisions of the 23-year-old Electric Power Industry Reform Act of 2001 (EPIRA) or R.A 9136.

I would like to think that it had swayed the President to ask Congress in his July 22 State of the Nation Address (SONA) to review and amend the law that has failed to stabilize power rates.

At the moment, three amendment bills — Senate Bill 2167, House Bill No. 351, House Bill 5036 – are aching for deliberation and consolidation.

Duron singled out section 34 of the EPIRA law for being “very oppressive”. To sum up its provision, he called it “onerous” because it passes to end users every cost incurred by utility companies, even if it results from faulty business decisions.

The EPIRA, signed in 2001 by then-President Gloria Macapagal Arroyo, was meant to reduce power costs and assure power supply, and to encourage competition that would reduce power rates. It has not achieved these goals.

The Philippines has one of the highest electricity rates in Southeast Asia.  This is ironic because we have hundreds of power plants run by coal, wind, diesel, and geothermal sources of energy.

As we go to press, word is out that electricity rates nationwide would hike this month of August. Last July, to cite an example, MORE Power billed its Iloilo City customers ₱12.85 per kilowatt-hour. But in the same month three years ago (2021) it was only ₱6.45/kWh.

But in fairness to MORE Power and the electric cooperatives which are classified as “distribution utilities” (DUs), they are not to blame for the inflationary rates.

The misconception that persists directly links the DUs to the total charges. The truth of the matter is that the DUs retain only around 10% of the bills collected. In other words, they double as collection agents for fuel, generation, and transmission services, plus government taxes.

The lion’s share of each power hike goes to the power plants, which are not regulated.  Thus, they make enormous profits.

Take for example the Aboitiz Power Corporation (AboitizPower). As reported by its own press release, it posted a huge net income of ₱7. 9 billion in the first quarter of 2024, which is 4% higher than the ₱7. 5 billion recorded in the same period last year.

Take note that while EPIRA prohibits DUs from hiking distribution rates without the consent of the Energy Regulatory Commission (ERC), it does not apply to power plants. It is so stated in Section 6, paragraph 3 of the EPIRA: “Upon implementation of retail competition and open access, the prices charged by a generation company for supply of electricity shall not be subject to regulation by the ERC except as otherwise provided in this Act.”

So, our dear solons, why not an amendment providing for that regulation?

-oOo-

A BIBLE VERSE FOR CALOY

FOR sure, the entire Filipino nation rejoices over Olympic gold medalist Carlos Yulo, who bagged two golds for floor exercise and gymnastics in the Paris Olympics. It was the first time that a Filipino Olympian won two gold medals in the world’s biggest sportsfest.

Congrats, Caloy.  May your tribe increase.

Sad to say, however, he also exposed a flaw in his character when he lashed at his mother, Angelica, on live TV for allegedly pocketing P70,000 of his money without his permission. All that, while his girlfriend Chloe San Jose was grinning ear to ear behind him. Bad taste, eh?

He sounded as if his mother disfavored his relationship with Chloe.

I would not quote his exact words.  You and I have heard them on TV. We have heard enough to conclude that mother and son are not on good terms.

We have read enough comments online, demonizing him for demonizing his mother. But what sort of mother would not think of the welfare of her children?

In reaction, Mama Angelica apologized to Caloy before the streamline and social media for whatever pain she had inflicted on him.

His dad Mark likewise showed up to assure him that, henceforth, they would not dip a finger in his multi million-peso prizes and donations in cash and in kind.

“Sanay kami sa problema,” he said. “Kahit ano lang ang kinakain namin. Sanay kami sa asin.”

Ponder God’s 5th Commandment, Caloy: “Honor your father and your mother, that your days may be long in the land that the Lord your God is giving you” (Exodus 20:12).