A long shortcut

Energy crisis in Mindanao is a socioeconomic problem, not a political issue according to President Benigno Simeon C. Aquino III. He stressed that Mindanaoan consumers will have to pay more because more end-users would mean more demand of electricity owing to Mindanao’s increasing population. “This is the reality of economics, not the rhetoric of politics”, he said.

As the irony of it all in that Mindanao Power Summit held in Davao City recently, it seemed that the President had gotten into him some disparaging criticisms instead, even from his allies.  Those that have passed judgement also released some high-voltage of energy, all to describe their disappointments. All the fiery comments are hurting from all sides. Nevertheless, we hope it will not put Malacañang into the bad light as it would appear to be the one being “nakuryente” after the Summit’s closing. If it is apolitical indeed, then even those from his camp would be free to fire up their opinions and would-be solutions to the energy problem.

The “daang matuwid” is giving two options: first, pay the high price; and second, just live with the rotating brownouts. But of course, Malacañang is bent on privatizing some of our publicly-owned power resource to dislodge any doubt that the “daang matuwid” thing could actually be “ tungo sa madilim at matirik na bangin”. A new power rate to be shouldered by the whole mass of consumers will do the trick and it will save Malacañang from further agony of public outcry. Remember, PNoy has also some economic agenda for Mindanao.

To pay the high price means to privatize the Agus and the Pulangi hydropower complexes, the primary sources of energy in Mindanao which is capable of generating 1000 mega watts of power, more or less. Electricity in Mindanao is cheap because the government made it cheap. The National Power Corporation (Napocor) accordingly operated at a loss, incurring billions of dollars in debt. Again, who is to be blamed? It just led people to push the limits of their imagination, and no clearer answer has surfaced so far.

Republic Act No. 9136, also known as the “Electric Power Industry Reform Act of 2001”or Epira Law (As in, eh, pera). It just proved lawmakers were two steps behind from the more alert and high-handed economic maneuvers which could translate as a presidential prerogative in one sense. For example, under Section 47 (e) of the Epira law, it states the prohibitive period of ten years before the Agus and the Pulangui complexes to be privatized. May I cite it here in full: “The Agus and the Pulangui complexes in Mindanao shall be excluded from among the generating companies that will be initially privatized. Their ownership shall be transferred to the PSALM Corp. (Power Sector Assets and Liabilities Management Corporation)and both shall continue to be operated by NPC.

It continued: “In case of privatization, said complexes may be privatized not earlier than ten (10) years from the effectivity of this Act, and, until privatized, shall not be subject to Build-Operate-Transfer (B-O-T), Build-Rehabilitate-Operate-Transfer (B-R-O-T) and other variations pursuant to Republic Act No. 6957, as amended by Republic Act No. 7718. The privatization of Agus and Pulangui complexes shall be left to the discretion of PSALM Corp. in consultation with Congress”. PNoy is not ill-advised by his economists and he knows it is just a matter of time and everything will be privatized.

Again, economists and lawmakers must have been alerted about the proviso in the declaration of policy in Epira law which clearly spell privatization. It states that Epira is implemented “To enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors, and in order to minimize the financial risk exposure of the national government”.

There’s the rub. The law talks about privatizing our power resources because Malacañang has vowed to lessen “financial risk exposure”. But again, as the President claimed, low cost of energy would drive investors away. Mindanao-based leaders have this to say: No, Mr. President. high costs of power will definitely drive investors away. All in unison, this is not about politics but simply a riddle which if solved could give great impact to the lives of millions who are already in the quagmire of poverty. If the electricity rate is increased irrespective of the ownership of power source can only be taken to mean a long shortcut to progress for Mindanao. Some real shortcuts are still within the prerogative of the President.