By
Dr. Jesus Lim Arranza - January 4, 2019
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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