The Hydropower plants in Mindanao which supplies 52% of its electricity is planned to be sold to private investors. This should not happen. We are opposing the privatization and here is the reason why.
Women & Children Leading the Fight to KeepMindanao’s Hydropower Resources in People’s Hands
How We Got StartedDr. Melchie Ambalong,Mindanao Commissionon Women (MCW) Vice-Chair, is also ChairEmerita of the LanaoPower ConsumersFederation (LAPOCOF)She has been a powersector reform advocateeven before the EPIRAlaw was passed in 2001
Why it is a Women’s IssueWomen are the major users of energyOur electricity bill accounts for nearly 15% of thehousehold budget so any increase in power rateshas an impact on our budgetAccess to electricity is important to women’sproductive and reproductive roles so lack ofaccess exacerbates the burden on womenWomen’s ability to participate and voice theirenergy needs in decision-making at all levels ofthe energy system is critical to any reform of thepower sector.
Mindanao women are breaking the silence and asserting their right to be heard on Mindanao’s vast energy resources
Starting with Agus Pulangi The Agus Pulangi Hydropower Complex supplies 52% of Mindanao’s electricity needs Under the EPIRA law, it was up for privatization by 2011
The EPIRAElectric Power Industry Reform Act (EPIRA) orRepublic Act 9136 passed on June 26, 2001 afterseven years of congressional debate and court casesIt has three main objectives: (1) to developindigenous resources; (2) to cut the high cost ofpower in the Philippines; and (3) to privatize powerassets to pay off NAPOCOR’s debtsIt requires state-owned utility National PowerCorporation (NAPOCOR) to break-up its verticallyintegrated assets into smaller sub-sectors such asgeneration, transmission, distribution and supply forprivatization
Selling NAPOCOR’s Assets In 2001, two subsidiary companies were created: National Transmission Corporation (TRANSCO) to assume Napocor’s substation and transmission assets Private Sector Assets and Liabilities Management (PSALM) Corporation to handle the privatization of NAPOCOR’s assets and the management of its liabilities
What EPIRA Has DoneIn 2008, the National Grid Corporation of the Philippines(NGCP), a private corporation, got the franchise tomanage, operate and maintain TRANSCO’s powertransmission function effectively privatizing thecountry’s power transmissionAs system operator of the power grid, NGCP has the solepower to decide who gets electricity when and for howmuchPSALM has privatized more than 91% of all NAPOCORpower plants yet the debt remains at US$16.7 Billion (asof September 2011), more than the original debt ofUS$16.4 Billion in 2001 before the passage of EPIRA
Environmental ChargeSection 34 of EPIRA provides that all power consumersmust pay an Environmental Charge of P0.0025 perkilowatt hour monthly to be used solely for watershedrehabilitation and managementCollections and disbursements as of March 31, 2010: Total Collection P 775,249,304.76 Availments P 338,928,492.72 Balance P 436,320,812.04
Lanao-Agus Reforestation ILIGAN CITYTotal Area: 194,160 hectares Lanao del MARAWI Norte CITYForested: 151,094 hectaresWithout Forest Cover:43,066 hectaresNAPOCOR reforestationfrom 1992-present: 2,004 Lanao delhectares only Sur
Pulangi Reforestation Total Area: 1.8 M hectares, second largest in the country Watershed Reservation: 309,750 hectares Without Forest Cover: 192,368 hectares or 60% is devoid of trees Reforested as of 2006: 500 hectares only
Where do the hundreds of millions of pesos collected as “environmental charge” for reforestation go? Who is responsible and accountable for it?
Impact on Power Rates June 2001 March 2011Average Retail Price Average Retail Price Luzon P 5.32/Kwh Luzon P 9.84/KwhVisayas P 5.21/Kwh Visayas P 8.19/KwhMindanao P 3.52/Kwh Mindanao P 6.70/Kwh
EPIRA is an Epic FailureIt did not reduce power costs.Privatization of NAPOCOR’s assetsdid not pay off its debt, butincreased it.Power capacity was not increased,there are more brownouts instead.
And yet the sale goes on... Agus River, 36.5 km Pulangi River, 320 km
House Initiatives House Bill No. 7106 filed by Iligan City, Lanao del Norte Rep. Vicente Varf Belmonte excluding Agus Pulangi Hydropower Complex from privatization House Resolution No. 107 deferring the sale of Agus Pulangi Hydropower Complex pending review of EPIRA
Senate InitiativesSenate Bill No. 3182 filed bySenator Gregorio Honasan IIexcluding Agus PulangiHydropower Complex fromprivatizationSenate President JuanPonce Enrile has pushed forthe review of EPIRA
Multi-Sectoral Opposition Lanao Power Consumers Federation Mindanao Commission on Women Confederation of Mindanao Governors and Mayors Mindanao Congressional Bloc Various local government units in Mindanao Association of Mindanao Rural Electric Coops Mindanao Chambers of Commerce Regional Development Councils Freedom from Debt Coalition NAPOCOR Employees Association
We Oppose PrivatizationBecause Agus Pulangi Hydropower Complex(APHC), which is the source of more than half ofMindanao’s electricity needs, keeps our cost ofpower relatively low and cheaper than the rest ofthe countryBecause passing on ownership of APHC toprivate hands will be giving the new privatesector owner excessive market power controlling51% of Mindanao market and power grid (aviolation of EPIRA)
We Oppose PrivatizationBecause electricity is a public utility and a basicneed, it should not be traded like any othercommodityBecause private power costs more, at least 20%moreBecause in a privatized electricity system, theprice of electricity is driven up by the addedcosts of profits, higher returns for the banks thatfinance private power projects and the fees ofmany consultants and brokers
We Oppose PrivatizationBecause Agus River and Pulangi River, whichcome from Lake Lanao, are part of the ancestraldomain of Mindanao’s indigenous peoplesnotably the Maranao, the Pulangiyon Manobo,and the Higa-unonBecause selling this ancestral domain to thehighest bidder will stand in the way of a peacefulsettlement between the GRP and the MILFBecause Mindanao’s vast hydropower resourceis our children’s heritage, it should not belong toone private owner
We Oppose PrivatizationBecause privately-owned electrical utilities havea poor track record in terms of undertakingenvironmentally-responsible initiatives unlessthere is a lot of money to be made so it is aclimate crisis riskBecause the power industry structure in thePhilippines is geared towardsmonopoly/oligopoly rather than competitionBecause market demand is too small in Mindanaofor there to be enough players to compete in alevel playing field
We do not want to sell theAgus Pulangi HydropowerComplex because it is our people’s treasure.It keeps our power cost low and earns money for the government.
Agus Pulangi is NOTLosingIt is a NET EARNERThe P15 B reportedlosses are actuallypaper losses(representingdepreciation andamortization)It actually subsidizesthe payment for If properly maintained and whenonerous IPP IPP contracts of losing assetscontracts from the expire, it is projected to increasepast administration more than four times its current net earnings
PNoy’s Response to Power Crisis: Pay more or live with brownouts!
Because PNoyinsists on privatizing Agus Pulangi, thepeople will “buy” the power complex collectively. We will “buy” it sothat it will be owned by the people now and in the future.
If there are 21 million people in Mindanao andevery man, woman, and child pledges at leastP50, we can raise at least P1 Billion in pledges
Why PIPOL’S POWER? To remind PNoy who his real boss is -- the very people who toppled a dictator and installed the country’s first woman president, his mother Power -- political and electrical -- must remain in people’s hands From “outage” to “outrage” -- collective action will change the people’s feeling of powerlessness to being powerful