GMA urged to avert possible power crisis

President Arroyo must heed the advice of two opposition senators to avert an impending power crisis.

Antonio Hombrebueno, chairman of the Foundation for National Development (FND) issued this call as he lauded Senators Aquilino Pimentel and Tessie Aquino-Oreta who "have taken a realistic stand on key issues affecting the electric power industry."

Pimentel has asked the Energy Regulatory Commission (ERC) to terminate the services of two American consultants identified with the controversial Accelerating Growth, Investment Liberalization with Equity (AGILE), and thus "dispel suspicion that its independence is being undermined."

Hombrebueno earlier identified the consultants as Larry Blank and Michael Pitlock who, he said, are "serving American, not Filipino, interests."

Oreta, for her part, criticized President Arroyo’s "stop-gap solution to the problem of high electricity bills," as she castigated the National Power Corp. (Napocor) for sinking deeper in debt and passing on such obligations to consumers to higher rates."

Hombrebueno cited Oreta for "sharing her sobering thought with the President, whose preoccupation to play the so-called populist tune is actually endangering the entire electric power industry."

"It is just as well that our distinguished senators have given candid advice to President Arroyo and her regulators," said Hombrebueno, "because such voices of reason can serve as a counterweight to bad counsel the President is getting from her economic and energy advisers."

The President does not have the luxury of adopting ill-conceived policy ideas from her advisers, because, by doing so, she would be bringing us closer to another power crisis," Hombrebueno added.

The power crisis from 1991 to 1993 cost the country P30 billion in industry losses, according to estimates by the Philippine Chamber of Commerce and Industry.

The FND leader reminded the President that she is committed to the implementation of the Electric Power Industry Reform Act (EPIRA), the passage of which President Arroyo takes credit for.

"However, the President’s managers in Napocor, including the consultants in ERC – local and foreign – are systematically blocking the goals the new law is supposed to achieve," Hombrebueno said.

He pointed out that the state power firm has already delayed its own privatization for many months already, while the ERC has yielded to pressures, giving in to consumerists’ demands, even changing its stand on assuring viability of those who produce and distribute electricity.

"We support the President as she lays the foundation for a more competitive, more efficient power sector, as she said so several times," the NGO head said. Now is the time for her to heed the advice of people like the two senators and other sectors of society, before it is too late."