A question of power

Business Mirror

13 Jan 2014 

 

Written by The BusinessMirror Editorial

THE country has suffered an energy crisis long enough to know that the reasons for it are more than just a shortage in the supply of electricity.

This has raised questions on how real the crisis is, like: Was there an alleged collusion between power-generation firms to “blackmail” the public to shoulder the high cost of electricity?

Some critics, on the other hand, believe it’s just another one of those schemes where politics is the main agenda. Still, it begs the question: Are emergency powers the solution?

By loose definition, emergency powers given to the President means that he can take over power utilities to avoid an energy crisis.  The 1987 Philippine Constitution has a provision on it—Article 12, Section 17, to be exact—stating: “In times of national emergency, when the public interest so requires, the State may, during [an] emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately owned public utility or business affected with public interest.”

The Constitution stresses that emergency powers do not permit sequestration and are only effective within the period of the emergency. As the provision states, reasonable terms must also be prescribed. Such terms, however, cannot stop the government from taking over privately owned utilities or businesses if the emergency so requires.

The granting of emergency powers is a means of “skirting” strict bidding and purchasing laws, which allegedly raises the suspicion that the energy crisis is more imaginary than real. Skirting these laws gives the government enough elbow room to favor friends over other bidders that are not as close with the powers-that-be.

President Aquino himself, when he was a senator, had raised this concern against the granting of such powers to then-President Gloria Macapagal-Arroyo during the power crisis in Mindanao. The region has been experiencing two- to three-hour rotating brownouts since 2009 due to decreasing water levels in hydroelectric plants.

Today Rep. Ben Evardone of Eastern Samar is raising the same concern. In a report, he was quoted as saying: “Maybe we can shorten the bidding process under the Procurement Act and simplify the Swiss challenge mode of inviting investors in the power and transport sectors.”

The disturbing thing about the supposed energy crisis is that every administration had suffered from it. The late Energy Secretary Angelo Reyes had stressed how “unstable” the entire Philippine power grid was, and how no long-term solution has been proposed. How and why it remains unstable is anybody’s guess.

Among those particularly affected by rotating power outages are the peace and security operations in the provinces. Many regional police offices reportedly suffer from a lack of Internet, fax-machine and computer services, greatly hampering their need to file reports.

The idea of an ongoing energy crisis has brought to the fore the government’s inability to provide one of the country’s basic needs. Indeed, if the lack of a power supply is the real reason, then an energy crisis will surely quash the country’s bid to attract foreign investments. If, on the other hand, politics is to blame, then it will cost the public more than the possibility of an uncomfortable working environment.   source