Sotto says Meralco's blackout warning a 'veiled threat'

MANILA, Philippines - Senate deputy minority leader Vicente Sotto III on Friday described as a “veiled threat” the warning of the Manila Electric Co. (Meralco) that there might be rotating blackouts in the summer months after the Supreme Court retains the freeze order on the electricity rate hike.

“It’s a veiled threat,” Sotto said, adding that he will ask Meralco and power producers to explain why they are contemplating to implement blackouts in the wake of the Supreme Court’s (SC) move to suspend the power rate hike.

Sotto also questioned the timing of Meralco’s statement which came on the same day that the SC ordered the Philippine Electricity Market Corp (PEMC), operator of electricity trading floor WESM, and power suppliers SEM-Calaca Power Corp, Masinloc Power Partners Corp, Therma Luzon Inc, San Miguel Energy Corp, South Premier Power Corp. and Therma Mobile Inc. impleaded as parties in the case.

Sotto reiterated his call for the need to repeal the Electric Power Industry Reform Act (EPIRA) so that the “government will have some control on the power sector.”

The Senate committee on energy chaired by Sen. Sergio Osmena III will be conducting a second public hearing on the issue once Congress resumes next week. The committee initially called for a hearing on January 21.

Sotto noted that the government failed to prepare the impending depleting power resources when the then Aquino administration shut down the plans of former President Ferdinand Marcos to open the Bataan Nuclear Power Plant (BNPP).

Sen. Grace Poe, however, understands where Meralco is coming from.

The power supply depends on the power generators.

"In this case, if Meralco defaults in paying the wholesale power suppliers then those suppliers might opt to temporarily reduce or withhold supplying power to Meralco which may eventually lead to rolling blackouts,” Poe said.

Poe urged the Department of Energy (DOE) to make sure that the rotating blackouts will be prevented as she pushed for the continuation of a Senate probe on the alleged collusion among power producers in relation to the unprecedented P4 rate increase.

Poe said he will ask for a list of the firms that were affected by the scheduled and unexpected shutdowns last year.

Power problem spawned since Cory’s term

Even the construction of hydro-power plants, supposedly to boost the country’s power generating assets, were not addressed properly during the Cory Aquino administration and the subsequent governments.

Sotto said the power problem spanned six administrations from the Cory Aquino administration up to the present administration.

“During the time of President Cory, there was industrialization… our economy grew but this resulted to a decline in power supply… (ex-president) Marcos envisioned this, and he had the Bataan Nuclear Power Plant,” Sotto said, lamenting that the BNPP was eventually shut down by the Cory administration.

It can be recalled that the country also suffered rotating blackouts during the Cory Aquino administration.

According to Sotto, former president Fidel Ramos succeeded in allowing the creation of the Independent Power Producers (IPPs) but these resulted to over-generation of electricity.

Sotto said it was during the term of Ramos that power producers moved for the passage of the EPIRA but it was eventually passed during the Arroyo administration.

According to Senators Jinggoy Estrada and Juan Victor Estrada, their father, former president and now Manila Mayor Joseph Estrada was against any power rate hikes during his term which was abruptly terminated during the so-called EDSA Dos People Power revolution.

The EPIRA measure was eventually approved upon the prodding of former President Gloria Macapagal-Arroyo, Sotto recalled, noting that he shunned efforts to get his vote for the EPIRA.

“There were groups and powerful individuals who even tried to convince me to sign EPIRA but I did not.  In the end, only Sen. (Juan Ponce) Enrile and I voted against EPIRA,” Sotto said in an interview.

Payback time?

Sotto distanced himself from insinuations that the present Aquino administration cannot work on the public’s side at this time because majority of the power players were perceived to be election campaign contributors.

“Kung may pagmamahal sila sa President, kung may pagmamahal sila bayan at sa gobyerno, dapat mag-share sila sa burden. Huwag masyado malaki ang kita,” Sotto said.

Asked if the campaign producers could be cashing in on the power issue, Sotto said he was not privy on the details on the campaign contributors in the past elections.  “I don’t want to speculate on what happened during the campaign… What is important now is we repeal the EPIRA,” Sotto said.

Sotto said the administration cannot ignore the pleas of its people who have been bearing the brunt of the high electricity rates.