Makabayan bloc’s HB 8079 could’ve halted merger of power giants – Castro
FILE PHOTO: ACT Teachers party-list Rep. France Castro says House Bill No. 8079 could have stopped the merger of three giant power companies: Meralco PowerGen Corp. (MGen), Aboitiz Power Corp., and San Miguel Global Power Holdings Corp. (SMGP). In early March, Manny V. Pangilinan’s MGen, Sabin Aboitiz’s Aboitixz Power, and Ramon S. Ang’s SMGP were reported to have forged a $3.3-billion (P184.89 billion) agreement to jointly launch the country’s “first and most expansive” liquefied natural gas (LNG) facility in Batangas province. | PHOTO: Official facebook page of the House of Representatives of the Philippines
MANILA, Philippines — The merger of three giant power companies in the country could have been prevented if the House of Representatives acted on House Bill (HB) No. 8079, ACT Teachers party-list Rep. France Castro said Thursday.
Castro said an enacted HB No. 8079 could have prohibited cross-ownership because the proposal makes it unlawful for energy distribution companies to hold any interest in electricity generation or supply firms.
Castro and other Makabayan bloc lawmakers filed HB No. 8079 at the lower chamber.
In early March, Meralco PowerGen Corp. (MGen), Aboitiz Power Corp., and San Miguel Global Power Holdings Corp. (SMGP) were reported to have forged a $3.3-billion (P184.89 billion) agreement to jointly launch the country’s “first and most expansive” liquefied natural gas (LNG) facility.
The facility in Batangas province is seen to strengthen energy security and promote “cleaner” energy.
“Kung naisabatas na sana ang House Bill 8079 – prohibiting ownership by electricity distribution utilities in electricity generation companies and retail electricity suppliers – ng Makabayan bloc ay hindi mangyayari ang supermerger na binuo nina MVP/Meralco-RSA/SMC-Aboitiz re: LNG facility sa Batangas,” Castro said in a message to reporters, referring to MGen’s Manny V. Pangilinan, SMGP’s Ramon S. Ang, and Aboitiz Power’s Sabin Aboitiz.
(If House Bill 8079 – prohibiting ownership by electricity distribution utilities in electricity generation companies and retail electricity suppliers – of the Makabayan bloc had been enacted, the supermerger developed by MVP/Meralco-RSA/SMC-Aboitiz re: LNG facility in Batangas would not have happened.)
“Ngayon ay nangangamba tayo na mas palalakasin nito ang monopolyo sa kuryente ng mga oligarchs na ito at sinasabing malamang na mas tumaas pa ang singil sa kuryente,” she added.
(Now we fear that this will further strengthen the electricity monopoly of these oligarchs and say that the electricity bill is likely to rise even further.)
READ: SMC, Aboitiz units submit lowest bids for 1,800-MW Meralco power supply
According to Castro, the merger might also be a way for local oligarchs to consolidate and strengthen their interests as amendments to the economic provisions of the 1987 Constitution loom.
Resolution of Both Houses (RBH) No. 7 seeks to amend Article XII (National Patrimony and Economy) of the country’s main Charter. If the proposed amendments are ratified in a plebiscite, the phrase “unless otherwise provided by law” would be inserted in Section 11 to revise the ratio of foreign ownership allowed in the country’s public utilities.
The House approved RBH No. 7 on the third and final reading on Wednesday, March 20.
“Pero kung titignan naman sa mas malawak na kunteksto ay baka paraan na din ito ng malalaking korporasyon dito sa Pilipinas na magbuklod at magpalakas dahil sa planong Charter change na papasukin ang mga malalaking korporasyong dayuhan sa bansa at isa sa target nito ay ang enerhiya,” Castro said.
(But if you look at it in a broader context, maybe this is a way for big corporations here in the Philippines to unite and strengthen because of the Charter change plan that will allow large foreign corporations to enter the country and one of its targets is energy.)
INQUIRER.net reached out to Meralco for its reaction to Castro’s statements, but has yet to receive a response as of posting time.
