Power shutdown not part of destab plot, clarifies APEC

The Association of Philippine Electric Cooperatives (APEC) will push through with its five-minute national power shutdown today, coinciding with Independence Day, to protest the recently approved expanded value added tax (E-VAT).

APEC leaders, however, said the move is not part of the "destabilization plot" against the administration of President Arroyo.

Sunny Madamba, one of the APEC party-list congressmen, said the power shutdown is voluntary and is intended to make the national government aware that the electric cooperatives and consumers are against imposing VAT on power.

"We are asking for the support of our members and consumers. If they are in favor of VAT on power, don’t worry, don’t shut off your power. But if you are against it, shut off your power for just five minutes after 7 p.m.," he told The Freeman.

Madamba said their party-list group is still part of the political coalition supporting the Arroyo administration.

He said he and his fellow APEC congressmen, Edgar Valdez and Ernesto Pablo, were still assessing the current situation amid allegations of poll fraud and corruption against the Arroyo administration.

"We are still concerned about the welfare and interest of the greater majority of the Filipino people, especially the power consumers. We will fight for what it is good for the general public, and are even ready to die for it," said Valdez in a press briefing in Butuan City yesterday on the second day of the national conference of the National Association of General Managers of Electric Cooperatives of the Philippines.

APEC, which claims a membership of over 119 electric cooperatives nationwide, expects majority of its members to join the power shutdown.

The group also sought the cooperation of consumers to join the power shutdown to let Malacañang feel that the people are against imposing VAT on power.

Madamba said they are expecting the government to hear their sentiments and act on their concerns by suspending the implementation of the VAT on electricity.

The new VAT law, signed by President Arroyo last May 23, imposes a 10 percent tax on power rates starting this July and an increase to 12 percent by January next year.

In a statement, APEC said the VAT on power amounts to a 13 percent increase in power rates.

On top of that, it said the electric cooperatives will be made to shoulder the local franchise taxes, which will have a negative impact on their viability.

"The viability of electric cooperatives is already under threat as the government is pushing for the privatization of the already private electric cooperatives through the investment management contracts," Madamba said. — Freeman News Service