Wednesday, July 10, 2013

Creation of Mindanao Power Corp sought


 (The Philippine Star) 

MANILA, Philippines - A party-list lawmaker is proposing the creation of a power corporation in Mindanao under a bill seeking to address the recurring power shortage in the region and prevent the same from happening in the future.
1-Care party-list Rep. Edgardo Masongsong filed House Bill 676 to assure the full development and maximized utilization of the power resources of the region.
“It will also ensure transparent and reasonable prices of electricity in a regime of free and fair competition, protect the public interest and provide full public accountability to achieve greater operational and economic efficiency in Mindanao,” Masongsong said.
He said the government should promote the economic development of the Mindanao region and the availability of electricity at reasonable cost as a catalyst for economic growth.
He said Congress passed the Electric Power Industry Reform Act of 2001 (EPIRA) in an attempt to institute genuine reforms in the industry to ensure quality, reliability, security and affordability of the supply of electricity.
However, he said the Agus and Pulangui hydroelectric power complexes, both located in Mindanao, were excluded from the privatization program and were given a reprieve for 10 years after the passage of EPIRA.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
Masongsong said in the wake of a recent power crisis that struck Mindanao, power industry stakeholders are prodding the government to maintain the Agus and Pulangui plants to subsidize prices in Mindanao since the hydro complexes are the sources of cheaper electricity.
“It is imperative for the national government to promote development in Mindanao by the establishment of the dependable and reliable supply of electric power through the acquisition of generation assets of PSALM (Power Sector Assets and Liabilities Management Corp.) located in Agus and Pulangui Hydropower complexes by the direct stakeholders from the Mindanao region to assure that the electricity rates are reflective of the true cost of power,” Masongsong said.
He said the acquisition by the Mindanao Power Corp. of the Agus-Pulangui Hydro Complexes would give beneficial resolution to the Mindanao stakeholders, as it would potentially gain all the benefits derived from privatization, that is, effective and efficient administration of the power industry in the region and security against the skyrocketing of electric power rates.
Under the measure to be known as the “Charter of the Mindanao Power Corp.,” the corporation shall have a term of 50 years from its creation, which shall be deemed renewed for an equal period unless sooner dissolved by law.
A Mindanao Power Fund shall be constituted with funding to be taken from the rate fixed by the corporation and from royalties paid by electric power industry players for energy resources in Mindanao. 
The fund shall be utilized to lower residential rates to be determined by the Corporation and approved by the Energy Regulatory Commission (ERC) provided it does not sacrifice energy security in the region.   source

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