President Fidel V. Ramos was granted emergency powers to deal with the power crisis in 1993. To solve the power crisis, Ramos issued licenses to independent power producers, giving them generous terms, including a government guarantee that it would pay for all electricity produced whether used or not. There was no public bidding.
The Independent Power Producers (IPPs) contracts granted through the emergency powers of Ramos resulted in high power rates, with excessive profits going to the electricity provider and kickbacks paid to the powers that be.
The 1993 Ramos experience has left a lesson that must not be repeated. Public bidding must be simplified, but not totally eradicated.
The grant of emergency powers is a direct admission that the President does not have sufficient powers under existing law to solve the power crisis. Yes, in three and a half years, there has been no effective solution to the problem.
Senator Francis Escudero, Congressman Antonio Tinio, and Lito Atienza are opposing the proposal. Sen. Francis Escudero warned that giving the President emergency powers would have repercussions. He said the same situation arose during the presidency of Fidel Ramos, which resulted in high electricity rates. “Although I am allied with the President, I think these powers should not be volunteered by Congress. This is supposed to be sought by the President, not the other way around,” Escudero said. source
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