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Senate to look into frequent power outages, rate hikes

August 9, 2022 Camille P. Balagtas 333 views

AMID the growing problem regarding the electricity service in the country, senators raised various reactions and measures to investigate the persistent and recurring power outages and rotation blackouts in the different parts of the country, as well as the rising cost of electricity and power interruptions.

Senator Raffy Tulfo, the chairperson of the Senate Committee on Energy, filed Proposed Senate Resolution (PSR) No. 107, seeking to find an immediate solution to an impending energy crisis and adopt necessary legislative measures to provide long-term energy security, sufficiency, and stability to all Filipinos.

“Hindi ko tatantanan itong problemang ito hanggang hindi nabibigyan ng solusyon. Tamaan na ang dapat tamaan. Sagasaan na ang dapat sagasaan, para sa kapakanan at ikabubuti ng mga taong nire-represent ko at ng mga taong bumoto sa akin,” he said in a press conference held at the Senate Press Office after the filing of the Proposed Resolution Monday, Aug. 8.

In filing PSR No. 107, Tulfo cited various reports claiming that by early to mid-2022, the Philippines might be in for a serious energy crisis, with allegations of thinning power reserves, outdated energy system, and the impending depletion of the Malampaya gas fields.

The most perplexing concerns relative to the alleged forthcoming energy crisis are the cases of Oriental Mindoro and Albay, with reports of power and electric supply interruptions pervasive almost every day in these provinces, thus, power outages unreasonably becoming a way of life for their residents.

In June 2022, at least 78 power interruption notices were announced by APEC (Albay Power and Energy Corp.) on its social media account, with at least 39 of those scheduled power interruptions, and there were 37 emergency power interruptions.

Meanwhile, Oriental and Occidental Mindoro have been enduring six to 14 hours of power outages every day since June 27, causing a shortage in power supply affecting over a million of its residents.

In his resolution, Tulfo said the inexplicable power supply interruptions and power rate hikes have caused “enormous discomfort, disturbance, and inconvenience to the Filipino people, essentially robbing them of their Constitutional right to a quality life.”

Aside from consumers in Albay and Occidental and Oriental Mindoro, residents of Camarines Norte, Laoag City, and Olongapo City have also demanded explanations from authorities, particularly from electric cooperatives, on the rising rates of electricity despite the scarcity in supply.

There were also numerous complaints regarding unfair electricity charges and power outages, particularly from the consumers of Oriental Mindoro, Nueva Ecija, Northern Samar, Pampanga, Batangas, Quezon Province, South Cotabato, Maguindanao, Laguna, Zamboanga, Pangasinan, Tarlac, Marinduque, Camarines Norte, Isabela, Masbate, Aurora, Bicol, Southern Leyte and Davao Oriental, abound in different social media forums.

For his part, Senate President Miguel “Migz” Zubiri expressed dismay at the ever-increasing electricity and power rates in northern Mindanao and many parts of the country.

The senate president insisted on the need to immediately review or amend the Republic Act no. 9136 or the EPIRA law.

“It has been 21 years since we passed the EPIRA. If we need to review and amend it to respond to the condition at this time, we are prepared to do so. No less than our beloved President Ferdinand Marcos Jr. had asked this in his State of the Nation Address [SONA],” Zubiri said.

In a privilege speech, Zubiri cited Cagayan de Oro, where the power rate supposedly jumped from P10.62 per kilowatt hour in January 2022 to P14.19 in July, which he said was a little 40 percent in only six months and reportedly happening in many parts of the country.

Upon consultations with some electric cooperatives, Zubiri divulged that most of them pointed to the very high generation charges due to the high crude prices in the international market and the weakening of the peso against the US dollar and other foreign currencies.

He cited the Electric Power Industry Reform Act (EPIRA), which says that this cost can be passed on to consumers, which Zubiri said is not “fair”.

He also questioned whether this increase has been monitored or approved by the Energy Regulatory Commission (ERC) as he appealed to newly-installed ERC Chair Monalisa Dimalanta and Energy Secretary Raphael Lotilla to look into the issue to help the suffering Filipinos immediately.

Sen. Grace Poe also raises the same alarm over the disparity in the prices of electricity rates in Metro Manila and those in the provinces.

“What have they been doing with the money they have been receiving from the consumers?” Poe said of an electric cooperative, adding that the profits could have been used to improve their services.

She sought the need to review the contracts entered into by the electric cooperatives with power suppliers to mitigate the high cost of their services as she also sought the need for Congress to look into proposals to remove the 12-percent Value Added Tax (VAT) on generation charges to possible bring down electricity prices.

Senate Minority Leader Aquilino “Koko” Pimentel III also asked the same to make a thorough investigation on this matter.

“Correct me if I’m wrong, electric cooperatives are supposed to be non-profit, board of directors is representatives of the consumers, they are called the trustees who look for the welfare of consumers, so apparently the entire concept is not working?” Pimentel lamented.

For Sen. Risa Hontiveros, during the interpellation, she asked Senate President Zubiri about the need to help the cooperatives and not “privatize” them.

“I totally agree with the position of the good lady senator. We are not here to dissolve electric cooperatives. What we actually want is to help them,” Zubiri said.