Energy bill debate muddled by ad hominems - DEMAND AND SUPPLY

I didn’t want to write my reactions to the current debate on the stranded energy reform bill because I may be misinterpreted due to my ties to the Lopez Group. But I find it distressing that so called representatives of civil society had resorted to extraneous accusations that attack the persons of legislators sponsoring the bill and those connected with Filipino companies involved in the power industry. Beyond the public hearings, they have gone on a PR campaign and a few points must be raised.

First of all, it is most unfair to dismiss the energy bill as one that favors those who are already in the business because Serge Osmeña is married to a Lopez and Sonny Osmeña is related to the Aboitiz family. These two Osmeñas are fiercely independent. Heck, the Osmeñas fight other Osmeñas. Brother versus brother, cousin versus cousin. Blood ties obviously don’t matter to these Osmeñas. Ties by marriage matter even less.

In the case of Serge, he may be married to a Lopez but that’s not the Lopez involved in the power business. Besides, Serge does not talk to his father in law. Serge was a Fort Bonifacio prison cell mate of Geny Lopez, but Geny’s been dead for almost two years now. Ironically, some executives of the Lopez companies in the business even think Serge was less than supportive, even contributed to the delay in the passage of the power bill. Civil society can accuse Serge of many things, but he isn’t one who will put family or friendship ahead of what to him are basic principles of carrying out his electoral mandate.

And I can’t understand the comment of one of those self righteous civil society academics who wondered by Christian Monsod was supporting the power bill when Winnie Monsod is in the People Power slate on their behalf. Have they run out of real arguments that they must now get personal?

What’s the big deal on cross ownership? The monopoly danger often cited is more apparent than real. Provisions in the power bill like the cap on market share and open access should take care of that. Yet, those who claim to speak for civil society insist on a cross ownership provision that discriminates against Filipinos who are capable of being in the business.

The Lopez Group has time and again said it is willing to talk about this point and reach a fair conclusion. They just want a level playing field with the foreign groups who are expected to bid for and acquire the Napocor power generating plants.

Actually, the large amount of resources needed is a natural barrier to a home grown monopoly taking root. The First Holdings Group of the Lopezes has a market cap of just about $300 million, nowhere near the $30 billion capitalization of any one of the foreign power companies expected to buy Napocor assets. The Lopezes can probably just buy one of the packages. The Aboitizes and the Alcantaras will be hard pressed to buy one. Yet, they are the only Filipinos with experience and access to resources to compete with the likes of Enron.

And speaking of Enron, there was this article in one of the weeklies about how Enron has India in its grip. Enron owns the power plants in one of India’s regions and sells power to a government distributor at rates denominated in dollars, much like the IPP situation here. Of course India can’t pay the full cost and the debts are mounting hopelessly. The article remarked, Enron might end up owning India one day.

That’s Napocor’s problem with its IPPs. Would this civil society types rather that the power sector be controlled by the same foreign power companies that caused the power crisis in California last year? They can call the local families involved in power all sorts of names but at least being Filipinos, they have a natural stake in the country’s welfare. The Enrons of the world are only loyal to their stock price and their non-Filipino owners.

All the conspiracy theories being peddled in media about how these families are trying to rig the power bill to perpetuate their monopoly are simply not reflective of reality. I am sure they will be happy if they are just given a level playing field as well as qualified and fair-minded regulators. They just don’t want to be discriminated against in their own country through rules that favor much bigger foreign companies with worldwide resources.

The Lopezes, the Aboitizes and the Alcantaras can band together and they are still no match to the Enrons and PowerGens of this world. The Walden Bellos of our civil society are perhaps unwittingly helping the big guys who are out to globalize the power sector. But Walden Bello is too smart to be an unwitting tool. Is it possible the big guys are using him as their stalking horse?

Petty (?) Graft

We received this e-mail of reader Arturo Dimayuga of Makati about a horrible experience in a couple of Makati based government offices.

I can’t believe this. It’s as if EDSA2 and all the protestations against corruption was unheard of at the City of Makati Pollution Control Office. What and who created this office anyway and where does all the money collected from fees go? Who has jurisdiction over this–is it the City of Makati or the MMDA? Consider my recent experience:

Upon attempting to register my vehicle at the Makati LTO, my driver was informed that a clearance from the Makati Pollution Control Office was a requirement prior to registration. At that time, the lady at the LTO who I spoke with over the phone recommended that we use a fixer for PhP350 to obtain the clearance-no inspection required. I asked how much the inspection normally cost-PhP50. At this I replied that no, I would prefer not to use any fixers since I assumed that they (LTO) actually discouraged such practice.

When we proceeded to the Makati Pollution Control Office on Yakal, we were again met by fixers and people from the same office offering their services to facilitate obtaining the clearance-no inspection. Guess what? The vehicle failed the inspection–totally unbelievable. The vehicle is barely 1 year old, regularly serviced at the dealership and sparingly used (less than 10,000 kms.).

What I find extremely galling is that I ply the Ayala Avenue corridor daily past their office and see the buses and jeepneys belch their black poison with impunity. I see people from this Pollution Control Office shaking down motorists in their traps while the obviously guilty get away scot free.

Whoever is in charge of this operation is doing citizens a great disservice by selectively enforcing regulations and abetting corruption for the sole purpose of financial gain.

It’s a sign

Aren’t you bored with the signs you see around? Fe de la Cruz sent us some signs that are absolutely creative.

Sign over a gynecologist’s office: "Dr.Espiritu, at your cervix." On the trucks of a local plumbing company: "Don’t sleep with a drip. Call your plumber."

At a tire shop: "Invite us to your next blowout." Door of a plastic surgeon’s office: "Hello. Can we pick your nose?" On an electrician’s truck: "Let us remove your shorts." In a non-smoking area: "If we see smoke, we will assume you are on fire and take appropriate action."

(Boo Chanco’s e-mail address is [email protected])