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Saturday, June 23, 2018 Vol. 13 No. 252
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‘AT SEVENTEEN’ On the anniversary of Epira, have we learned the truth about the power sector?
THE Pagbilao coal-fired power plant in Quezon.
S
ANTONIO OQUIAS | DREAMSTIME.COM
By Lenie Lectura
EVENTEEN years since the Electric Power Industry Reform Act (Epira) of 2001, or Republic Act 9136, was enacted into law, have major reforms indeed fostered competition among power players? Industry stakeholders think so, and are trotting out the reasons for saying so.
“Epira is working. Just look at all the investments in power and the competitive rates in retail and WESM [Wholesale Electricity Spot Market],” said AC Energy President Eric Francia in a recent text message to the BusinessMirror. Epira, most energy sector experts agree, has liberalized the Philippines’s electricity sector with at least three important provisions: deregulation and demonopolization of the powergeneration sector; creation of the WESM, and liberalization and demonopolization of electricity
distribution via the Retail Competition and Open Access. More important, investments in the power sector started pouring in. More power-generating firms mean more power projects, thereby boosting the country’s power supply, ultimately benefiting consumers. “Many of us still remember the days that our country suffered severe power shortages that not only hampered our lifestyles, but created havoc on our economy. Today, we have certainly come a long way from that situation and the need for the government to step in
to ensure adequate power supply,” Francia pointed out. New, efficient and state-ofthe-art plants, like Pagbilao 3, are being built by the private sector without government funding, without government guarantees and without government take-orpay obligations. We believe this project is a testament that Epira is working,” observed Aboitiz Power Corp. President Antonio Moraza. Aboitiz and TeaM Energy Corp. have partnered to invest close to $1 billion for a 420-megawatt (MW) Pagbilao 3 base-load in Pagbilao, Quezon Province.
The Philippine power industry has been transformed from a monopolized, politicized and heavily subsidized structure, to one that is competitive and bears the true cost of power, allowing the government to channel resources to other social services. “This competitive structure was envisioned to attract investment, drive down power costs and empower the end user. “I dare say that it is only the power sector that is building capacity in our country’s infrastructure requirements ahead of actual See “At Seventeen,” A2
Manila or Beijing: Who’s really in control of Sandy Cay?
T
By Rene Acosta
HE permanent presence of Chinese military and paramilitary ships in the Sandy Cay gives a foretaste of what may possibly come for Filipinos—that the country may yet “physically” lose another territory in the West Philippine Sea (WPS) to Beijing. The basing of Chinese vessels in the Cay followed the course of Scarborough Shoal, where China already exercises a “de facto” control following a standoff between a patrol vessel of the China Marine Surveillance and the Philippine Navy’s flagship BRP Gregorio del Pilar in 2012. Unless the Navy can drive away the Chinese ships or would challenge them—and this time, without the Philippine govern-
ment blinking—Beijing could very soon add Sandy Cay, located just 2.5 miles off Pag-asa Island, to its annexed territory in the WPS. That is the worst fear of some experts who have studied the maritime disputes extensively, among them Senior Associate Justice Antonio Carpio.
‘Soft stance’
LIKE Scarborough Shoal, Sandy Cay has been controlled by Beijing,
PESO EXCHANGE RATES n US 53.4190
PROTESTERS display placards and shout slogans in a continuing protest against China over its coast guard’s alleged seizure of fish caught by Filipino fishermen near the Scarborough Shoal on June 14, 2018, by the baywalk in Manila. The protesters denounced China’s recent alleged harassment and assailed President Duterte for his “sheer neglect to assert our legal and historic claim” in the South China Sea. AP/BULLIT MARQUEZ
even as early as last year, according to party-list Rep. Gary Alejano of Magdalo. It’s a warning that he has repeatedly sounded several months back, but was dismissed by security officials. Moreover, Alejano claimed that President Duterte has ordered the military to stop patrolling the WPS, but the Armed Forces of the Philippines has strongly denied this, insisting such security patrols are part of the AFP’s mandate. The Magdalo representative, however, said patrols could be conducted on a scaled-down frequency as a middle ground. Alejano claimed Duterte’s alleged order and his “weak” positioning on the territorial tiff with China is causing demoralization in the military. However, Defense Secretary Delfin N. Lorenzana quickly denied this, stressing that there was no demoralization within the ranks, and that the Commanderin-Chief did not order the military to cease its patrols. He admitted, Continued on A2
n JAPAN 0.4857 n UK 70.8015 n HK 6.8086 n CHINA 8.2259 n SINGAPORE 39.3365 n AUSTRALIA 39.4179 n EU 61.9927 n SAUDI ARABIA 14.2447
Source: BSP (June 22, 2018 )