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7/31/2019 March 20 2012 TUCP PL on Mindanao Power Situation
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HON. RAYMOND DEMOCRITO C. MENDOZA 20 March 2012
Trade Union Congress Party (TUCP Party-List)South Wing 204, House of Representatives, 1126 Batasan, Quezon CityTel/Fax. No: (02) 951-3011: Mobile No.: (0922) 8838453MRO:Louisivi J. Oliva
TUCP: Power shortage in Mindanao is artificialConspiracy to blackmail consumers for higher rates
Trade Union Congress Party (TUCP Party-List) Representative Raymond Democrito C. Mendoza
today decried what he called the man-made artificial power shortage in Mindanao. There is
nothing to evidence that the power shortage is due to an act of God or climactic change, contrary tostatements made by the National Economic Development Authority (NEDA) and as well as
representations made by officials of the National Grid Corporation of the Philippines (NGCP), he
said.
In truth, the energy crisis has been nothing less than a product of the power generators who have
ensured that power capacity remains down. This power crisis is also exacerbated and made worseby governments failure to act on long-standing demands that the siltation in the Agus-Pulangui
Hydroelectric plants be flushed. This is already a long-standing demand of Congress two years ago
and yet the DOE has refused and has not yet acted on this matter, Mendoza said.
Equally disturbing is the revealation that notwithstanding the possibility of brownouts bringingour economy to a stand-still in Mindanao, there are still four (4) power barges owned by the
National Power Corporation (NPC) which can easily be moved to sites around Mindanao toaddress the power crisis and yet it is the Power Sector Assets and Liabilities Management
Corporation (PSALM) who has been clamoring to sell these power barges. What is it that they are
after? To create a situation where these power barges now privately owned will be utilized and yetsell power at higher rates to the poor Mindanaoans? he lamented. TUCP insists that this power
barges not be sold and that NPC and PSALM reposition them to Mindanao now, explained
Mendoza.
We are amazed at the duplicity of the National Grid Corporation (NGCP) in declaring that there is
a power shortage of 145 Megawatts (MW). The truth is that there is only about 45 MW shortagebecause the Agus-Pulangui plants are currently under preventive maintenance, explainedMendoza.TUCP firmly believes that NGCP is bloating the shortfall and arranging the dispatch
schedules so as to make the brownouts worse than they should be, said Mendoza.
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Mendoza also questioned the NGCP, NPC and PSALM also as to why the plants are being
subjected to a preventive maintenance shutdown at this time. Why could this not have been done
during December when the water levels of Agus-Pulangui were still so high? It does not take arocket scientist to schedule maintenance when they will cause less brownouts, explained
Mendoza.
Mendoza accused the generating corporations located in Mindanao of deliberately not investing in
additional power capacity within franchise areas controlled by their sister distribution companies
and the independent cooperatives in order to being about a shortage. The shortage is man-madeby unscrupulous profiteers. They know that if there is a shortage then that will help pressure
consumers to accept solutions based on high cost power. Presto, more profits for the Aboitizes,
Lopezes and Alcantaras, said Mendoza.
In fact an on-the-spot investigation a team under the sponsorship of Lanao Power Consumers
Confederation (LAPOCOF) under Dr. Melchie Ambalong and the Mindanao Development
Authority (MinDA) under the leadership of Secretary Luwalhati Lou Antonino has disclosed that
there are power generation plants that are currently available and that can undertake generation ofsufficient power. But there is curtailment of water flowing from the topmost plant which is the
Agus 4. If this had not been curtailed, then the lower level located powerplants Agus 5, 6, and 7would have been able to generate sufficient power, said Mendoza. The same team also pointed
that the water level today is as high as five months ago so there is no decrease in water level which
would lower production of electricity by the Agus-Pulangai hydropower complex, said Mendoza.
Mendoza revealed that there is a conspiracy to ensure that Mindanaoans are blackmailed into
accepting a high power regime. We condemn this in the strongest possible terms and we call on
our President to correct the matter by directing the Secretary of DOE to immediately relocate thesepower barges without privatization in order that prices remain affordable. There are 2 power barges
privatized in 2010 which electric co-ops do not want to buy power from because it is selling power
at 15php/kwh. This is highway robbery and the DOE Secretary knows it, said Mendoza.
Mendoza also said that the Agus 4 Plant repairs should be rushed so that Agus 4, 5, 6 and 7 will
operate according to full capacity. TUCP maintained its long-standing opposition to theprivatization of the Agus Pulangai plants. The cost of hydropowers only 2.97php per kwh. If we
privatize it the new owners will charge an increase up to 5php per kwh. We shouldnt allow what
happened in Luzon and Visayas to happen in Mindanao, stressed Mendoza.
Mendoza also said that the Operational Management Agreement (OMA) contract which allows
PSALM to run the NPC as its own, be rescinded. The OMA obligates NPC to remit its gross
receipts to PSALM for the latter to pay the stranded costs of NPC to international creditors. Webelieve that under this set of circumstances, where the NPC will now be able to recover all its
gross receipts, it will be able to allocate sufficient funds to the flushing and cleaning up of the
siltation that is apparent in the Agus-Pulangui hydropower complex area, explained Mendoza.
Further DOE should ensure that all power producers who wish to enter the Philippine electricity
market, must allocate a certain percentage of their capacity to power development of the baseload
in Mindanao, he added.
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The solon also expressed support for the call for a Mindanao power summit under the leadership of
Sec. Antonino. We believe that her understanding of this issue and her advocacy for advancingthe interests of Mindanao will ensure a fair hearing by the President, said Mendoza.
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