Friday, January 4, 2019

Is the Solar Para sa Bayan franchise a virtual monopoly?



By Dr. Jesus Lim Arranza -

Incidentally, though, I find my topic for this issue of Business Mirror interesting, if not intriguing, like the bill to impose a two-tier tax on cigarette, which I strongly criticized in my Ferbruary 23, 2017 column for being anti-competitive, the Solar Para sa Bayan franchise  that grants the renewable energy power firm the authority to install, establish, operate and maintain distributable power technologies and mini-grid systems throughout the Philippines is also anti-competitive and monopolistic.
And, much like the rushed approval of the bill to impose a two-tier tax on cigarettes in  2017, the Solar Para sa Bayan franchise bill seems to have been rushed as well by the Lower House.
Like the fate of the two-tier tax bill on cigarettes, which has been shelved after strong opposition from some industry sectors as it could create market segmentation, giving some industry players undue advantage,  I am also hoping that the Solar Para sa Bayan franchise bill would be reviewed further in both Houses of  Congress because of its big impact to the country’s power industry and the new Philippine Anti-Competition Law.
According to an earlier statement by party list Representative Lito Atienza, House Bill Nos. 8013 and 8015, which seek to grant the franchise to Solar Para sa Bayan, were railroaded.
I still can’t understand the Lower House’s haste in having the Solar Para sa Bayan franchise bill approved when there are several groups, including legislators, who are against it.
And like the concerns of some sectors about its being “unconstitutional” because it allegedly violates the existing rules of House Bill No. 8179 or the Electricity and Power Industry Reform Act (EPIRA), I am also concerned about granting Solar Para sa Bayan the authority to infringe on the franchise of distribution utilities, most especially granting the power firm a virtual monopoly of the country’s power industry.
In my lifetime, I still have to see a franchise granted to a private firm to provide very basic services to all Filipinos nationwide, such as power.  As far as I can remember, a power supply franchise is  only limited to a particular franchise area.
And while Section 59 of the EPIRA is clear that only those that are in remote and unviable villages that the franchise utility is unable to service for any reason shall be opened to qualified parties, the Solar Para sa Bayan franchise bill, however, grants the power firm authority to participate in every sector, like generation, transmission, distribution and supply without scope limitations.
Is the Solar Para sa Bayan franchise a “superman franchise”? I hope I will have enough supply of cryptonite to fight this superman.

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