June 27, 2019 | 9:56 pm
THE Philippine
Independent Power Producers Association, Inc. (PIPPA) asked President Rodrigo
R. Duterte to veto a bill granting a renewable energy (RE) distribution
franchise to Solar Para sa Bayan Corp.
“PIPPA respectfully
urges the Office of the President to evaluate this bill and the repercussions
of signing this franchise. PIPPA humbly requests that upon careful
consideration, the ultimate conclusion is to veto this legislative franchise in
its entirety. This franchise in favor of SPSB only serves to create chaos in
regulation, act as a disincentive to investors, and show the public that undue
advantages can be granted to people in power,” according to a statement
Thursday issued by the group.
PIPPA questioned anew
the need for a franchise, noting that SPSB can provide services without one.
“A legislative
franchise in favor of SPSB is not necessary. This franchise is unconstitutional
and violates the equal protection clause of the Constitution,” PIPPA said.
It proposed that
government properly implement the Electric Power Industry Reform Act (EPIRA) of
2001 or Republic Act 9136, which governs the electric power industry and
encourages competition among energy suppliers.
“Under the EPIRA, the
generation of electricity is competitive and open; there is no franchise
requirement for generation and supply. Only the distribution and transmission
sectors are required to have a franchise. More importantly, the Renewable
Energy Act, the Department of Energy, and the Energy Regulatory Commission
provide for a framework and regulations where distributed power technologies
and mini grids are addressed and implemented,” PIPPA added.
The group added that
SPSB does not offer any novel technology which warrants special treatment by
means of a franchise.
“The unbridled
authority to operate at any capacity, of whatever kind, and in any part of the
Philippines, is far too great a privilege for any entity,” the group said.
“The effect of this
franchise is creating a monopoly in what should clearly be a competitive
environment,” it added.
“The PIPPA stands
together with all the power industry associations, stakeholders and all the
other business groups and associations in its continuous opposition to this
franchise simply because this bill is legally infirm and constitutionally
flawed.”
The IPPA’s statement
follows several business groups’ appeal on Wednesday for a Cabinet-level review
of the franchise.
The American Chamber of
Commerce of the Philippines, Financial Executives Institute of the Philippines,
Makati Business Club, Management Association of the Philippines, Semiconductor
and Electronics Industries in the Philippines, Inc. and the Women’s Business
Council Philippines, in a joint statement, raised concerns on its effect on
reducing competitiveness in the market.
Congress earlier this
month ratified a bill awarding SPSB a legislative franchise to establish mini
electricity grids in remote and unviable, unserved, or underserved areas in the
country.
SPSB is a company
controlled by Solar Philippines President Leandro L. Leviste, son of Senator
Loren B. Legarda.
BusinessWorld has been seeking
Mr. Leviste to comment on the matter but he has not replied as of press time.
— Janina C. Lim
No comments:
Post a Comment