Lawmakers seek Napocor revamp

Several congressmen sought yesterday the revamp of the management of the National Power Corp. (Napocor) in connection with the signing of what they described as a "highly irregular" contract that could double the cost of electricity in Mindanao.

Representatives Teodoro Casiño and Edgar Valdez of the party-list groups Bayan Muna and Association of Philippine Electric Cooperatives, respectively, said Napocor officials responsible for the contract with Lanao Hydro Development Corp. (LHDC) should be taken to account.

The two said by entering into a deal with LHDC under which the state power firm would market the electricity to be produced by the former, Napocor violated the Electric Power Industry Reform Act (EPIRA).

They said the law prohibits Napocor from entering into any power-related contract with any Independent Power Producer (IPP) to prevent the cost of power from further rising.

Casiño and Valdez stressed that the IPP contracts during the Ramos administration are the culprit behind the high cost of electricity in the country today.

They added that the Philippines has one of the highest power costs in all of Asia.

They pointed out that under the contract with LHDC, Napocor would sell the private firm’s production at P4.32 per kilowatt-hour, or double the rate authorized by the Energy Regulatory Commission for Mindanao.

"This clearly violates the EPIRA," said Valdez, who comes from Mindanao.

Another Mindanao lawmaker, Faysah Dumarpa of Lanao del Sur, supported the call of some of her colleagues for Ombudsman Merceditas Gutierrez to investigate Napocor officials involved in the LHDC deal.

She said the officials violated the law by abusing their authority.

"I agree with my colleagues that there should be an end to all attempts to put one over our people. Congress and the Ombudsman should ensure that the interest of consumers is well-protected," she said.

Casiño said he is disturbed by the statement of Energy Secretary Raphael Lotilla that the government was ready to enter into negotiated contracts with IPPs.

He also called for an inquiry into the ownership of LHDC since most of its incorporators were formerly connected with the power sector, particularly state corporations involved in the industry.

He identified some of the incorporators as Asuncion Gonzaga, former head of the National Transmission Corp., Jose Samonte, a former Napocor official, and former Philippine Coconut Authority administrator Virgilio David.