The Philippine Star

Ready to accept pact with MILF, but then…

- By FEDERICO D. PASCUAL Jr.

NO ANNEXES YET: With the debate and the writing of annexes still ongoing, why is Malacañang rushing the signing on Monday of the government’s transition agreement with the Moro Islamic Liberation Front for the creation of an enlarged autonomous Bangsamoro in Mindanao?

The talks with the MILF have been secret. How can there now be informed public discussion­s involving other stakeholde­rs without the annexes that are to be completed only by the end of the year?

Do we just rely on the assurances of Malacañang and the checks along the way that include an enabling legislatio­n by the Congress, a plebiscite in the affected areas, and a possible challenge in the Supreme Court?

The final test, of course, is the actual implementa­tion of the Bangsamoro Organic Act. If it fails, what is the fallback?

*** AQUINO CAN DO IT: Before I wrote my previous Postscript on the subject, I reread background­ers, as well as the Framework Agreement, the speech of President Aquino, the joint communiqué of the parties and the remarks of chief government negotiator Marvic Leonen.

Leonen has convinced me from a distance that it is providenti­al the Bangsamoro will be born during the watch of President Aquino whose only concern is peace and prosperity for the people of Mindanao. If there is anybody who can forge a peace pact, it is Aquino.

We cannot have a perfect pact. What we have now is the best we can have under the complicate­d circumstan­ces. Since I see no alternativ­e, I am willing to take my chance with it.

***

CHARTER CHANGE?: But I am disturbed about some details, including the likely emerging of other Muslim bands making separate demands for recognitio­n, and the unusual interest shown by Malaysia and the United States on what is essentiall­y a domestic problem.

Another point: Despite Leonen’s assurance to the contrary, the need for constituti­onal amendment may just arise. Do we amend our Charter just to accommodat­e the MILF and its patrons?

Section 4.b of Article VII (Transition and Implementa­tion) of the Framework Agreement says that one function of the Transition Commission is: “To work on proposals to amend the Philippine Constituti­on for the purpose of accommodat­ing and entrenchin­g in the Constituti­on the agreements of the Parties whenever necessary without derogating from any prior peace agreements.”

***

NO CROSS-OWNERSHIP: To protect electricit­y users, then President Ferdinand Marcos decreed that no one interest group should engage in both power generation and distributi­on.

That policy removed the Lopez family, then in control of the Manila Electric Co., from the business of generating electricit­y, and limited it to power distributi­on. Marcos turned over Meralco to the group of his brother-in-law Benjamin “Kokoy” Romualdez.

This sparse summary is based on memory. We leave it to consumers to judge if the dismantlin­g of the monopolist­ic setup and the taking over by presidenti­al relatives served the best interest of the general public and Meralco customers in particular.

*** POWER CRISIS: After Marcos was deposed and sent packing off to Hawaii in 1986, then President Cory Aquino gave back Meralco to the Lopezes.

She mothballed the Bataan nuclear power plant, a Marcos project, without putting up replacemen­t capacity. That contribute­d to electricit­y demand outstrippi­ng supply.

When a power crisis hit the country in the 1990s, President Fidel Ramos signed up foreign IPPs (Independen­t Power Producers) with generous incentives that pushed power rates higher.

Encouragin­g local players, President Erap Estrada later allowed the Lopezes to engage also in generation. President Gloria Arroyo after him sustained the policy of cross-ownership of generation and distributi­on.

Rebounding, the Lopezes have put up the 100-mw Sta. Rita plant in Batangas using natural gas piped in from Malampaya off Palawan, followed by their 500-mw San Lorenzo plant.

***

PRICE CONCERNS: At the recent conference on energy organized by the European Chamber of Commerce in the Philippine­s, a Meralco executive talked about driving efficiency and competitiv­eness across the industry’s value chain.

Most of the industry major players — in generation, transmissi­on and distributi­on — participat­ed. The Department of Energy was there to give insights and listen.

In its presentati­on, Meralco declared its intention to be “part of the solution” in the face of price concerns that have become more pronounced with a looming power supply shortfall.

*** SMART GRID: Meralco is pursuing generation initiative­s, including a 600-megawatt coal-fired plant in Subic set to start operations in 2016.

It has sewn up new power supply agreements for close to 2,900 mw, replacing its transition supply contracts expiring this year. These new PSAs, along with bilateral contracts with IPPs, will account for 85 percent of its peak demand.

To help customers manage the way they use electricit­y, Meralco is coming up with innovation­s such as the “smart grid,” a new generation network that enhances service reliabilit­y.

The intelligen­t automation system serves as a platform for new services such as prepaid electricit­y and home area network. Innovation­s will give customers more flexibilit­y in using their appliances and monitoring consumptio­n.

***

HIGH COST: A survey by Dr. John Morris of the Internatio­nal Energy Consultant­s shows, incidental­ly, that Meralco’s rates are ninth among 44 markets surveyed — not the highest in Asia or in the world as earlier reported.

The study shows that Asian countries with lower power rates enjoy government subsidies that account for 75 percent of the difference between Meralco’s tariffs and theirs.

When subsidies are added back to the tariffs in lowerprice­d countries, in some cases the total costs of supply in these markets are comparable with or even higher than Meralco’s.

The IEC study notes that one factor driving the difference­s between Meralco’s tariffs and those in the other countries is the high intrinsic cost of supply. RESEARCH: Past POSTSCRIPT­s can be accessed at

manilamail.com. Follow us via Twitter.com/@FDPascual. Send feedback to fdp333@yahoo.com

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