CPPC move buoys Cebu City

More than a month ago, Cebu City was on the verge of a major electric power crisis. This was triggered by what was then perceived as lack of government action on the problem of independent power producer Cebu Private Power Corp. (CPPC). The power supplier had then just informed power distributor Visayan Electric C. (Veco) that it could no longer continue operating safely due to its massive revenue losses brought about by a non-viable rate structure.

That crisis did not materialize. I understand the government had moved swiftly to avert what could have been a major power shortage in the Queen City of the South which would have also affected the entire Visayan power grid. CPPC supplies close to 30 percent of Veco’s requirements: A shutdown could have been crippling. But last July 24, CPPC officially told Veco it was not shutting down: the city is assured of stable power supply.

Several gentlemen in both the private and government sectors stood out in the effort to prevent the crisis. Newly-appointed Energy Regulatory Commission chair Manuel Sanchez was quick to implement an ERC decision which was shelved by the National Power Corp. By doing what had been ordered done, the ERC untied the non-viable rate structure which, in turn, made it possible for CPPC to continue rendering service.

Energy Secretary Vincent Perez Jr. was also said to be instrumental in making sure that CPPC and Veco continued with productive dialogues. There were reportedly some periods of impasse, but Perez’s persistence bore fruit. Sources informed me that solutions were arrived at just hours before the July 25 deadline, thanks to the open-mindedness and service-consciousness of the gentlemen behind Veco and CPPC: the Garcias and Aboitizes of Veco, and Tito Villa-real and Roger Lim of CPPC.

The unsung heroes of this saga were, of course, the city’s business community led by Cebu Chamber of Commerce and Industry president Carlos Co. The soft-spoken low-profile business leader was a cheerleader of sorts, openly batting for pragmatic solutions to the erstwhile impasse between Veco and CPPC. It was Co’s silent support to the problem-solving process which gave the parties to the issues impetus to move on.

We are happy for tireless Cebu City Mayor Tommy Osmeña who was briefly concerned that the power issues could adversely affect the development plans for the city. The good mayor’s concerns were valid: his city has the fastest growing economy in the region with an average of some 20-percent growth in exports over the past five years. Cebu City accounts for only about two percent of the country’s population, but is responsible for close to 10 percent of the country’s total exports.

With the power crisis averted, Mayor Tommy’s plans for the Queen City are back on track. We wish Cebu City the economic success its business and political leaders and its people deserve.

From the readers

I am a regular reader of your column. About two weeks ago you wrote about a thrift bank and the way they treat their customers. Something happened to me with the same bank. Please check with other people if the same thing happened to them.

Around March of this year, their Caloocan branch marketing people called me up to ask me to place any excess fund with their new instrument ( I don’t know what they called it) offering me rates 20 percent higher than other banks. Before I committed my money, I asked why they can offer such good rates compared to other banks. Their answer is that they will place the money in instruments with a maturity of five years, thus escaping the withholding tax burden. But I said the money I have is available only for the short term. I will need it to build up my inventories for the Christmas season. No problem. I can place and withdraw like the usual 30 days money market placements. They will find other people/funds to fill in the void thus still maintaining the five-year deposit rule. Since I have dealt with this bank before and you know whatever little helps in these trying times I invested my hard earned money with them. Then I told them, I need the money and I want to terminate my placement. You know what they told me, I have to pay the withholding tax! They then try to convince me to place my money for the whole five years! So instead of getting some interest for this month, I have to shell out a 140 something to get my money.

This is not even misrepresentation! This is hi-way robbery! Tell your readers to beware! – Leon

Bits and pieces

Who is this former lady senatorial candidate who goes around town with five bodyguards, uses a car siren, and in traffic goes the opposite way? As if the abuses of some of those in power are not yet enough.

The head of one of the country’s biggest broadcast networks reportedly blew his top when he entered the office canteen and found the employees watching the hit Taiwanese soap opera of the rival network! As if his problems were not enough yet. Before the airing of this soap opera, his network’s ratings were already going up and the company was already close to number one. When this rival network‘s soap opera aired and became an instant hit, the ratings went back to normal and it was once again far number two.

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