MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) is faced with another stumbling block going into the last stages of privatization of the National Power Corp (Napocor) assets.
In a statement, over a hundred members of the Federation of Rural Electric Cooperatives (Region VIII) said they are opposing the sale of the 640-megawatt (MW) Unified Leyte geothermal power plants.
PSALM, the state entity created to handle the privatization of Napocor assets, has scheduled to auction off the contracted capacity of the Unified Leyte geothermal power plants on July 30.
Samar Electric Cooperative II general manager Ponciano Rosales said their opposition to the privatization of the geothermal facilities is anchored on the belief that this will redound to higher power rates in the region.
The group said the state-owned asset firm management firm should “give the new administration a chance to review the government’s privatization policies and pricing scheme in the power sector,” citing their concern that the bidders would submit higher offers and result to exorbitant electricity prices in the region.
“It is very unfortunate that government is benefitting from the privatization at the expense of the consuming public who will pay again for the assets that have been paid before through the rates of Napocor,” the cooperatives said.
The group pointed out that if the privatization of the Unified Leyte contracts will push through under the existing policies and pricing scheme of the government, “it will result in irreversible impact that will continue to increase electricity rates contrary to the objective of the Electric Power Industry Reform Act of 2001.”
The group said the sale of the assets should be deferred “to give ample time for the new government to review, promulgate and implement policies that will lessen the burden of consumers and make our country globally competitive.”
Aside from Samar Electric, other signatories to the petition are Davao Oriental Electric Cooperative, Biliran Electric Cooperative, Southern Leyte Electric Cooperative, Samar Electric Cooperative, Eastern Samar Electric Cooperative, Northern Samar Electric Cooperative and Leyte Electric Cooperative.