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It seems appropriate to air one of our readers’ views on the power industry in the light of the continued increase in fuel prices and subsequently, electricity rates. Here is what ercksar68 wrote reacting to our column, “Are We Prepared for the Rebound?” in The Philippine Star’s online version.
“I just want to give emphasis on the power sector privatization in our country, as what we are experiencing in the oil industry, the cost of fuel was not lowered as what was intended, and the government has no power over it.
“We know how the cost of this basic economic input affects and cascades to all other sectors. The power, and of course agriculture, sectors are two of the major sectors that have been affected.
“I was in India for a two-month training program on rural generation and distribution management. As part of the program, we were taught about the power scenario in that country.
“I learned that their government is also encouraging private participation in the power generation and distribution, but the private sector is only given up to 25 percent of the all-time capacity requirement, with another 25 percent for the state government, and the bulk of 50 percent in the central government.
“I just could see the logic: It is the government’s responsibility to deliver this basic service to the people. But while the private sector is only given 25 percent, the government provided them with enough incentive for them to operate profitably.
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