| Home | CPP | NPA | NDF | Ang Bayan | KR Online | Public Info | Publications | Kultura | Specials | Photos |
|
| |||||||||||||||||||||||
|
|
|
Massive protests against oil, electricity and water monopolies began on April 24 because of recent hikes in the prices of their products and services. With their tremendous impact, it was as if a "triple whammy" had been put on the people. Oil companies once again raised prices by P0.39 per liter on May 17 and 18. Prices of petroleum products are estimated to rise by up to P1.00 per liter this month. The three companies composing the cartel (Petron, Shell and Caltex) have justified the move by citing renewed oil price hikes in the international market. In the past months, electricity charges in Metro Manila, Central Luzon and Southern Tagalog (areas serviced by Meralco) rose by as much 100-116% due to unjust PPA (purchased power adjustment) charges. The PPA has been added to electric bills to ensure the profits of independent power producers. It is anomalous because it obliges consumers to pay for the IPP's entire capacity even if a substantial portion of such capacity remains unutilized. Through the PPA, consumers pay for as much as 5,000 megawatts of excess capacity that they have not consumed. In Meralco's case, P2.5835 (or 80%) of its current charge of P3.2341 for the PPA is paid to an independent power producer that, like Meralco, is also owned by the Lopezes. Meralco would like to raise electricity charges further through the new system of "unbundling" that segregates charges into the following components: generation, transmission, distribution, supply, metering and universal charges. The system is in accordance with the Power Reform Act. Consumers would end up paying up to P1.12 more per kwh following the formula for "unbundling" drawn up by the Energy Regulatory Commission. On the other hand, Maynilad and Manila Water Works announced in April that they would be raising water service charges by up to 94%. A case has been filed to contest this move. The campaign against higher electric charges is led by BAYAN and POWER, a broad coalition composed of mass organizations, urban poor communities, consumer organizations, associations of middle forces, church people and other sectors. A 15-minute "black-out protest" conducted by the coalition on April 29 was joined by many Metro Manila communities. There have likewise been other forms of protest, such as stamping "under protest" on Meralco electric bills. Ilaw ng Kababaihan, a women's group, has also burned electric bills as a symbolic form of protest. Others have filed petitions and cases in court and hold discussions on the issue in payment centers for electricity and water services. In the provinces, electric cooperatives are also poised to raise electricity rates because NAPOCOR has hiked charges for the PPA and CERA (currency exchange rate adjustment). NAPOCOR has already imposed power cuts on several cooperatives for their failure to pay the higher rates. In the face of intense criticisms of the "triple whammy", congress and Malacañang have been forced to intervene and make a pretense of studying how to stop rising prices. The courts have also been compelled to issue temporary restraining orders on electricity and water rate hikes. On May 9, Macapagal-Arroyo was forced to order NAPOCOR to reduce the PPA to P0.40 per kwh from an average of P1.25 per kwh. Although the lower rates will provide some temporary relief, militant groups continue to assert the complete abolition of the PPA. (For a more detailed discussion on oil and electricity, read the primers published by the Party Information Bureau: Monopolyo atbp. and Ang Electric Power Industry Reform Act of 2001.) 
| ||||||||
|
[ HOME | CPP | NPA |NDF | Ang Bayan | KR Online |Public Info] [Publications | Specials | Kultura | Photos] The Philippine Revolution Web Central is maintained by the Information Bureau of the Communist Party of the Philippines. Click here to send your feedback. |
|
