Decisions we live to regret

There have been decisions made by our leaders that, because we the people never bothered to question them, we lived to regret and suffer their consequences.

I will just cite two and they are all concerned with electric power.

One was the decision in 1986 of then President Corazon Aquino to mothball the nuclear plant in Bataan put up by Marcos. And her reason was because it was the project of Marcos.

It was also believed there was a big kickback, corruption. And knowing how corrupt Marcos was it was difficult not to believe it. But the Philippines already signed the contract and it had to pay the debt. We paid with our much needed dollars.

* * *

That was Error No. 1. Then because President Aquino did not address the power problems when Fidel Ramos became President, the problem was already serious in Luzon .

Ramos said, he could solve the problem, only if he had the full authority from Congress. Because the problem was so serious, Congress gave him the full power. Ramos then contracted many Independent Power Producers, more known as the infamous IPPs.

That was Error No. 2.

Contracts, it turned out, were not studied. If studied those who studied did not know or refused to know. The contracts were disadvantageous to the government which was obligated to pay, even if the amount of electricity contracted was not delivered.

Rates were jacked up to pay the losses incurred with the IPPs. Since then whenever Presidents ask for emergency powers to solve problems, Congress has been hesitant. The memory of the IPPs is too painful to remember.

* * *

Now, we are facing an issue, quite similar to the IPP issue, but this time locally. Ceneco entered into a contract with Kepco-Salcon Power Corporation to supply the electricity we need.

Ceneco refused to have the provisions of the contract publicly discussed. Even in the Ceneco general membership assembly which is the proper forum. But, it was purposely not brought up.

From the letters of Ms. Romana de los Reyes to the DAILY STAR, this contract will bring us high electricity rates with added suffering to the poor people. Ceneco even refused to answer and dispute the points raised by Ms. de los Reyes.

And the tragedy is, except for Congressman Jose Carlos “Kako” Lacson of the Third District, our other officials, particularly Congressman Jeffrey Ferrer with Ceneco forming a part of his district, Bacolod Congressman Monico Puentevella, Mayor Bing Leonardia of Bacolod, Mayor Jose Montelibano of Silay, Mayor Eric Saratan of Talisay, Mayor Ramonet Torres of Bago, Mayor Esteban Coscolluela of Murcia, and other officials have not been heard from except Bacolod City Councilor Jocelle Batapa Sigue whose Committee sent an opposition to the Energy Regulatory Commission not to approve the contract.

I hope our public officials realize the seriousness of this Ceneco-Kepco contract now.

* * *

The issue is simple. As pointed out by Ms de los Reyes, the coal-fired power plant is still to be set up. The geothermal plant is already in operation. Why contract with the still unknown?

The country is promoting the use of renewable energy like geothermal, wind or solar power. And we are in a volcano island, sitting atop a renewable source of energy. Coal is non-renewable and imported and time will come it will run out of supply.

And also in the contract, it says additional increased cost will be borne by the consumers.

When the contract was signed, coal cost was computed at $31 a metric ton. Now the cost of coal was reported to have doubled. By the time the contract starts to be operational in 2011, the price of coal might have multiplied many times and the cost of electricity by 2011 will be too much.

The word to describe it is a disaster. That's why I call on our officials to stand up now. Or the future generation will say we sold them down the river.

And if the contract is approved and implemented, how can we get out of it? The Philippines was not able to get out of the contract with its mothballed nuclear plant. It also was not able to get out of the contract with the IPPs.

* * *

At $31 per metric ton of coal, Kepco will charge P4.30 per kilowatt hour. If coal price goes up to more than $100 a metric ton in 2011 because the biggest coal supplier Australia decided to limit its mining output of coal, imagine how much will electricity cost in the Ceneco area?

And even at P4.30 per kilowatt hour, there is an additional value added tax of 12 percent or a total cost of P4.816 per kilowatt hour. Geothermal charges only P4.50.

And with geothermal, residential consumers enjoy a rebate of 30 centavos per kilowatt hour. Kepco will not honor this. Imagine the burden to the poor.

* * *

We salute all those who stand up against the Ceneco-Kepco contract for the sake of the future generations. But, I give my biggest salute to Bishop Vicente Navarra, firm in his commitment of his help to the poor. I like his stand against STL, too.

The challenge is with our officials to communicate with the President and the Energy Regulatory Commission.

But many of these issues we will hear when Congressman Kako Lacson brings Congress to Bacolod to hear our sentiment.

* * *

Salute, too, to Ms. Romana de los Reyes and to my friend Neil Honeyman who I always consult on a big issue like this or issues on corruption. Neil retired as member of a powerful Independent Commission Against Corruption in HongKong.

I also met Nene Leonardia yesterday who told me James Chua is one of the best friends he has. He is my friend, too. We just happened to be on the different sides of the issue.*

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