BIZ BUZZ: ‘Heavy baggage’

In the energy industry, there is a longtime consumer advocate who is known to be unafraid of voicing unpopular opinions even when it means rubbing the biggest players in the sector the wrong way.

We’re talking about Pete Ilagan who is the president of the National Association of Electricity Consumers for Reforms Inc. (Nasecore), an advocacy group that was formed in 1999 as a private watchdog against pricing abuses by big corporations in the power sector.

Twenty-three years later, Ilagan is still performing this role, this time putting himself on the record to verbalize what many others were saying only in their minds or in whispers.

In a letter to President Marcos on Monday, the Nasecore chief went right out and opposed the appointment of Energy Secretary Rapahel Lotilla and Energy Regulatory Commission chair Monalisa Dimalanta.

In particular, Ilagan said both officials carried liabilities—which he described as “heavy baggage”—to the President’s team, which the appointing authority “may have inadvertently missed.”

“Both Ms. Dimalanta and Atty. Lotilla come from the energy arm of the Aboitiz Group of Companies and they are seated at the opposite ends of the governance process: Dimalanta on the regulatory side as chair of the ERC and Lotilla on the implementation of government policies as Secretary of Energy,” Ilagan said. “We believe that the Aboitiz Group should not exercise influence in both offices to maintain the checks and balance of the two key offices.”

But more importantly, the Nasecore chief pointed out that this marked the first time since the passage of the Electric Power Industry Reform Act (Epira) that both posts “are occupied by personalities who come from power companies.”

“Both positions have the power to recommend review and revocation of utility franchises under the Epira,” Ilagan said, noting that none of the former Department of Energy Secretaries, from Secretary Jose Isidro Camacho up to Secretary Alfonso Cusi, came from power companies.

Similarly, none of the former ERC chairs, from Chair Fe Barin to Chair Agnes Devanadera, were affiliated with power companies to the same extent as Atty. Dimalanta, he pointed out.

And then Ilagan dropped another “truth bomb,” which, heretofore, had only been whispered among power industry insiders and observers: “This gives the strong impression that the new appointees, being recommendees of the Aboitizes, will naturally look with favor upon their sponsors.”

“Mr. President, we believe that the recall of the two key appointments and replacing them with people not affiliated with any company in the power sector and who have a good track record in protecting electricity consumers will undoubtedly help build and strengthen the foundation of your administration and win the trust of the stakeholders in the power industry,” Ilagan pleaded.

Biz Buzz has, of course, spoken to various Aboitiz Group officials who all vouch for the professionalism of Lotilla and Dimalanta. In particular, Lotilla’s affiliation was limited to him being an independent director of Aboitiz Power (and they emphasize “independent,”) while Dimalanta’s time with the group was limited before she got appointed, they point out.

But the group is privately aware that Mr. Marcos’ appointments have raised eyebrows among people in and out of the industry. As such, they are eager to put these concerns to rest.

But can they? And more importantly, will the President give weight to the issues raised by Ilagan in his letter? The price of electricity the Filipino consumers pay may very well depend on the chief executive’s decision. Abangan!

—Daxim L. Lucas INQ