Below are my comments in one thread in Government andTaxes, Liberty and Responsibility facebook group, about the ongoing debate on electricity rate hike.
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January 12-16, 2014
(1) Bobi Tiglao (he is in this list) has
implied that there should be more government intervention in the power sector,
like adopting the Singapore model of vesting contracts.
About the proposal by Cong. Evardone to give the President "emergency powers", Speaker Belmonte has an answer to it: The President is not even asking for it. It's a non-issue, but some legislators, some media can sensationalize it to a big issue.
Take note guys, there WILL be rotating brownouts this coming summer 2014 in Luzon including M.Manila, then another set of brown outs in summer 2015, most likely until summer 2016. The big power plants will come online by 2017 and 2018.
The main problem is in the power generation sector, not in transmission (via NGCP) or in distribution (via Meralco, other electric coops). Some days in 1st week of December 2013, last month, up to 3,800 MW of power was offline due to scheduled + unscheduled shutdowns. Forced shutdowns occur mostly in power plants that are more than 20 years old.
About the proposal by Cong. Evardone to give the President "emergency powers", Speaker Belmonte has an answer to it: The President is not even asking for it. It's a non-issue, but some legislators, some media can sensationalize it to a big issue.
Take note guys, there WILL be rotating brownouts this coming summer 2014 in Luzon including M.Manila, then another set of brown outs in summer 2015, most likely until summer 2016. The big power plants will come online by 2017 and 2018.
The main problem is in the power generation sector, not in transmission (via NGCP) or in distribution (via Meralco, other electric coops). Some days in 1st week of December 2013, last month, up to 3,800 MW of power was offline due to scheduled + unscheduled shutdowns. Forced shutdowns occur mostly in power plants that are more than 20 years old.
(2) I do not think that the left, the socialists and the
pro-nationalization are winning the public debate to re-nationalize power generation
and distribution. Government is the most un-trustworthy institution in the
country, or even in almost all countries. People are complaining of corruption
left and right, from Executive to Legislative to Judiciary, from local to
national governments, from armed to non-armed units, and you give heavy
political power and control of the important electricity system to the
government?
The worst thing that can happen is frequent brown outs. Like what they have in Nepal, N. Korea, and to a certain extent, in Mindanao. People are willing to pay a high price just to have electricity, that's why they buy more expensive gen sets running on expensive diesel. Or the cost of frequent fires because of too many candles is something that the public will hate. A rise of P4/kWh for one month, and perhaps another rise the next month, then back to old rates the next month, is not enough justification for the public to be hoodwinked to the propaganda of the left and socialists.
The worst thing that can happen is frequent brown outs. Like what they have in Nepal, N. Korea, and to a certain extent, in Mindanao. People are willing to pay a high price just to have electricity, that's why they buy more expensive gen sets running on expensive diesel. Or the cost of frequent fires because of too many candles is something that the public will hate. A rise of P4/kWh for one month, and perhaps another rise the next month, then back to old rates the next month, is not enough justification for the public to be hoodwinked to the propaganda of the left and socialists.
(3) The typical "nationalize, socialize"
argument from the Freedom from Debt Coalition (FDC), no new argument, no
studies presented, just press conference.
From interaksyon.com, January 13, 2014,
This group btway cannot advocate freedom from borrowings policy. Only spend-tax-borrow, then demand freedom from debt later.
(4) "Let
foreign power companies compete with our own power producers and distributor.
For the leftists and protectionist Centrists, a free power sector is a radical
solution. I agree, freeing not only the power industry but the whole protected
economy is a radical solution, but this is exactly what we need if we are
to survive, both politically and economically."
-- VincentonPost, January 14, 2014
(5) Politicians and legislators tend to have very
parochial minds. For any problem, to them the solution is more politics, more
government. Can any politician put up a power plant in one month or one year?
The main problem here is not enough new power plants. Many are old, bought from
NPC, 20 yrs old, 30, 40 yrs old. Some would break down from time to time.
From abs-cbn news, January 14, 2014
Trillanes files bill giving PNoy emergency powers minus 'bad' provisions
Trillanes files bill giving PNoy emergency powers minus 'bad' provisions
Instead of asking what government should do, they should ask what government should NOT do, like not imposing too many taxes, fees, royalties, permits, other regulations and restrictions to new power plant projects.
