Solon wants probe on impending power rate hike

California 15 years ago tried to deregulate the power industry by ordering investor owned utilities to divest their interest in the generation of energy and open their transmission lines for “wheeling” the power generated by independent power producers. Wheeling means I can used the transmission and distribution line own by somebody by paying a set fee. The state law required also the opening of a power exchange where anybody can sell and buy power with the intent of opening up competition. Less than a year into the program, a heat wave in California was in full force and the cost of power when up by as much as 900 % in the open market subjecting the investor owned utilities into severe debt of paying expensive power which they cannot directly charge to consumers. They threatened to declare insolvent if the state will not come to the rescue. An investigation was made on why the market forces did not work but the reality was some generators schedule their maintenance work without anybody looking due to the new regulatory environment. The governor declared an emergency and directed the California energy resource to take over the power exchange and directed all generators of energy to put off maintenance work and all public utilities and outside suppliers to supply power to california. We are still paying for that reckless experiment and I believe you are going to do the same thing. The governor and some state officials were defeated in a recall election one year later. I cannot understand why rates in the Philippines are being adjusted so frequently instead of gradual increases made on a yearly basis to absorb cost investments and operation and maintenance cost. The department of energy should be given authority to direct investor own generators and transmission operators to build new facilities to ensure energy security otherwise they will lose their franchise

Malapit na ang eleksyon. Parang ganito lang yan eh… “Problema nyo, sagot NYO!”

Dapat i-subsidize  o maglaan ng counter part ang gobyerno sa pagpapatayo ng planta ng koryente para mabawasan ang capital ng namumuhunan. Mas maliit na puhunan, mas mababa ang halaga ng koryente kasi konte lang ang babawiing puhunan ng mga may-ari ng planta.  HUwag tayong magtaka kung bakit tayo ang may pinakamahal ng koryente sa asya kasi hindi naman namumuhunan ang gobyerno para mabawasan ang capital ng mga producer ng koryente. Kung ang 100mega watt na planta ay nagkakahalaga ng 10 bilyong piso, ganito rin ang halaga ng pera ang dapat bawiin ng capitalista pero kung ang gobyerno ay maglalaan ng subsidy o counterpart na kalahati sa kanilang capital, kalahati rin lang ang babawiing capital ng mga producer ng koryente. Kung ang gobyerno ay namumuhunan sa kalsada, lrt, airport at iba pa, bakit di mamuhunan ang gobyerno sa kuryente? Di ba?