Aquino administration warned: Power rate hike to affect tourism

CEBU, Philippines – The tourism sector in Cebu has warned that the impending power rate increase would have a huge negative effect on the popularity of President Benigno "Noynoy" Aquino III.

This was aired by Patria Aurora Roa, former regional director of the Department of Tourism in Central Visayas, who remains active in the tourism sector particularly in Cebu.

In the first 100 days of Aquino as president, he had a trust rating of positive 60.

This is based on the survey conducted by Social Weather Stations in September 2010.

Roa said that the country will become an expensive tourist destination compared to our neighboring countries if the power rates would be allowed to go up.

This is because hotel rates and the cost of transportation, food and other services would go up as the establishments would be forced to pass on the increased power cost to the customers.

Roa's statement was supported by Jenny Franco, the chairman of the National Association of Independent Travel Agencies (NAITAS) - Cebu chapter.

Franco is also the vice-president for the Visayas and a member of the Board of Trustees of the newly created Philippine Tourism Congress provided under Republic Act No. 9593 also known as the Tourism Act of 2009.

Franco confirmed that hotel rates in Phuket, Thailand and in Vietnam are cheaper than in the Philippines.

"Of course, if the power rate increases here, prices of commodities and services will go up more," Franco told The FREEMAN.

The power rate increase is expected since contracts of the National Power Corp. with power distribution utilities will expire by the end of 2010.

Earlier, the business sector in Cebu aired the same concern regarding the power rate increase as it will affect business and the prices of goods.

The expiration of all the contracts of NPC and power distributors by the end of year was first revealed by Edecio Satina, assistant vice president of Cebu Energy and Development Corp., during the 888 News Forum at Marco Polo Hotel last Tuesday.

Satina said the power rate is lower because of the government's subsidy through the NPC.

But because most of NPC's assets are already privatized and the contracts will expire by December, the rate will go up if the Aquino administration will stop the subsidy.

Joel Bontuyan of the Energy Regulatory Commission (ERC) confirmed Satina's statement, but assured the public that the commission will review all new contracts entered into by new private owners of NPC plants and power distributors.

The use of nuclear power was also brought up as a solution for the power shortage here.

In the same news forum, Robert Go, former president of the Cebu Chamber of Commerce and Industry, said that there is really a need to put more power plants and invite foreign investors for the power sector.

Go expressed his support for nuclear power plant saying that it is "worthwhile" and at this new age, the people must open their minds.

There is already a study conducted by the Department of Energy on the feasibility, safety, economy and practicality of the use nuclear power plant.

However, DOE-7 regional director Antonio Labios said that result of the study is yet to be released.

The DOE is open to that option though Labios said, they are still waiting for the result of the study as well as the study of a third party in order to find out what would be the next move.

Vince Cinches, coordinator of the Cebu Alliance for Renewable Energy, on the other hand challenged the proponents on the use of nuclear power to a debate.

The group is pushing for renewable energy and they are opposing the coal-fired power plant such as the Salcon-Korean Electric Power Corporation in Naga City.

Cebuano chemist Dr. Ramon del Fiero of the University of San Carlos earlier proposed the establishment of a nuclear power plant in the province as a long-term solution to the island's power supply problems.

Gov. Gwen Garcia said she wants to encourage businesses to invest in the development of power plants in Cebu even if these include nuclear technology.

Garcia said she is convinced that nuclear technology would be helpful to Cebu.

The use of nuclear technology was already proven effective in other countries like South Korea.

In her visit to the Kepco plant in Seoul, Korea last year, Kepco officials told Garcia that their nuclear plant was the most efficient power plant they've ever had. - /NLQ (FREEMAN)