John O calls off public hearings on IPP contracts

Sen. John Osmeña has called off today’s scheduled public hearing on the government contracts with independent power producers (IPPs) that would have had former President Fidel Ramos as resource person.

Osmeña, chairman of the Senate committee on government corporations and public enterprises, said yesterday that he had no time to prepare for the committee hearing as he had just arrived from the United States.

The committee acquired exclusive jurisdiction over the IPP hearings after the Senate committee on energy, the supposed primary committee in the joint hearing, yielded.

Osmeña said that the public hearing would most probably be held next month before the convening of the Second Regular Session. Aside from Ramos, the committee has also invited former executives of the state-owned National Power Corp.

He said that Ramos is the best person to give detailed information into the controversial contracts that forced Napocor to pay for all committed power production whether the power is used or not.

Napocor is passing on the paid unused power to the consumers in the form of purchased power adjustment. The PPA bill is almost twice the actual power consumed, raising howls of protest from consumers.

Osmeña said Ramos appeared to have made a mistake in entering into those contracts, which are now being blamed for the burden being shouldered by users of electricity.

The opposition-recognized Senate President Pro Tempore Blas Ople had declared that he would issue a subpoena to compel Ramos’ appearance before the Senate hearing should Osmeña recommend this. Senate President Franklin Drilon, however, said that Ople is not authorized to issue subpoenas.

If Ramos attends the scheduled IPP hearings, then it would mark the second time that he would do so before the Senate after his term. The first time was when he was invited by the Senate Blue Ribbon Committee to explain his role in the controversial multi-billion peso white elephant, the Centennial Expo project in Clark.

Earlier, opposition Sen. Edgardo Angara charged that the Ramos administration continued to enter into contracts with IPPs even after receiving a warning from the World Bank of power oversupply.

Angara said that in December 1994, the World Bank warned of an impending oversupply of electricity as the installed capacity was already 43 percent more than the actual demand.

He said that the standard excess, also called "insurance capacity," is 30 percent.

He cited documents saying that even after the December 1994 warning by the World Bank, the Ramos administration went on to sign 11 IPP contracts, including two signed in June 1998, a few days before the end of the ex-president’s term.

The oversupply is blamed for the controversial purchased power cost adjustment, which is passed on by the National Power Corp. and distribution utilities like Meralco to consumers.

PALEA vs PPA

Meanwhile, the Philippine Airlines Employees Association (PALEA) launched yesterday a nationwide signature campaign to support the class suit filed before a Pasay City court by at least 40 non-government organizations against the PPA.

"The signature campaign is in support of the class lawsuit already filed against the National Power Corp. and the Manila Electric Co.," said PALEA president Alex Barrientos.

The airline union launched the campaign ahead of a ruling expected to be issued by Pasig City regional trial court Judge Alfredo Flores on the class petition seeking a temporary restraining order on the collection of the PPA.

Planning to gather at least one million signatures all over the country, PALEA launched the campaign at the Redemptorist Church in Baclaran, Parañaque City and solicited signatures from church-goers as well as passengers and employees at the Ninoy Aquino International Airport (NAIA).

Barrientos said PALEA members, numbering about 3,500, will also solicit signatures at airports all over the country as well as markets, subdivisions and train stations in Metro Manila. - With Nikko Dizon