Two lawmakers who are allies of President Aquino last week filed with the Office of the President a complaint against Chairperson Zenaida Ducut of the Energy Regulatory Commisssion accusing her of failure to protect the interest of the consumers when it approved last December Meralco’s application for a staggering P4.15/kilowatt-hour increase.
“Respondent is guilty of gross neglect of duty by tacitly approving, without the barest hint of due process, the unprecedented generation charges Meralco sought to pass on to consumers in the months of December 2013, February 2014 and March 2014,” Akbayan Partylist Representatives Walden Bello and Ibarra Gutierrez said in their complaint.
It would be interesting to see how Malacañang will handle the complaint considering that last December in Tokyo, Aquino confessed being powerless about the unconscionable increase because he said, “ERC does not report to us, they are independent of us.”
Feeling the public’s anger over the huge power rate increase, Malacañang has since backtracked from its hands-off policy and has ordered an investigation on the suspected collusion by power players to manipulate the energy prices.
Bello and Gutierrez have focused on Ducut, a Gloria Arroyo appointee, whose term at the regulatory agency is still up to 2015.
The two lawmakers said Malacañang can suspend Ducut. But Communications Secretary Herminio Coloma said that could take time. “There will now be a process to establish if there’s sufficient basis for the allegations against her. And it’s justifiable that she’s afforded a chance to explain her actions. So far what we have been hearing are allegations coming from the opposing side,” he said.
Bello and Gutierrez suggested another option for Ducut: resignation. But the ERC Chair refused saying, “The professionalism and reputation of the entire ERC organization is at stake here and I will not abandon but will lead my people to what is proper and appropriate. “
If there’s somebody who can convince Ducut to resign it should be Ramon Ang, president and chief operating officer of San Miguel Corporation.
A reliable source said Ang was instrumental in the installation of Ducut at the ERC which should be something to be concerned about because San Miguel, with its SMC Global Power Holdings Corp., is one of the major players in the energy sector.
Many have wondered why Ducut was not included in Aquino’s “Tuwid na Daan” sweep like he did with former Chief Justice Renato Corona and former Ombudsman Merceditas Gutierrez considering the ERC chief’s checkered background. According to Inquirer columnist Randy David, “Before she was plucked out of anonymity in 1995 to run as representative of Pampanga’s second district, ERC Chair Zenaida Cruz-Ducut had worked as a lawyer for Bong Pineda, Central Luzon’s alleged “jueteng” lord and kingmaker. Her undistinguished career in Congress spanned nine years, ending in 2004. She ran under Danding Cojuangco’s Nationalist People’s Coalition in 1998, but transferred to Gloria Macapagal-Arroyo’s party after the latter seized the presidency in 2001. Zeny Ducut promptly became GMA’s loyal minion, avidly campaigning for her in the presidential election of 2004 and supporting her son Mikey Arroyo’s bid for the congressional seat she had occupied for nine years.”
Ducut is also implicated by pork barrel scam whistleblower Benhur Luy in the malversation case filed before the Ombudsman. Luy said Ducut demanded a five-percent commission for every Priority Development Assistance Fund project she delivered to pork barrel scam operator Janet Napoles.
With Ramon Ang as patron, Ducut indeed is “nakasandal sa pader.”
Last week, at the inauguration of the Tarlac City-Gerona-Paniqui section of the Tarlac-Pangasinan-La Union Expressway project, built and operated by Private Infra Dev Corp. Inc. an SMC unit, the President addressed the SMC head as “Siyempre, ating idol po si Mr. Ramon Ang.”
The country was spared the stress of an impeachment trial with the resignation of former Ombudsman Merceditas Gutierrez. Someone close to both Aquino and Gutierrez brokered the latter’s resignation.
Will Aquino ask his idol to do the same with Ducut?
Contrary to the myth, Nuclear powered energy source is not the cheaper alternative, but it is cleaner, and renewable and can produce large scale of power..Japan who rely a substantial part of its electricity on nuclear also has one of the higher rates…
But that is besides the point…the Electricity rate in the Phl by all measure is very expensive..one among the main reason is the profit motive of the power industry, and perhaps unregulated profit or return on investments.
Many will also believe that these were brought about by the collusion, Conspiracies, and backroom maneuvering by all players in the industry and there is a Truth to that too.
The only solution that may bring down the rates of electricity to reasonable and affordable cost to consumers and industries is revisiting the Idea of National Ownership of the Utility, from Generation to distribution and related operation must be strictly regulated.
Again many will say shooting the moon will not harvest you a duck, but who knows, if lucky instead of Ice Storm, it maybe a windmill or Solar power…
And impeachment, firing out, charging politicians and bureaucrats and hitting them left and right in the media and social media and in broadcast and in Print had not done much either for the well being of the people, but a short lived relief of Sighhh…we got him or her…
And it is expected that this Spring, the Provincia Govt will call an Election and the Main issues other than the Province students decrease Scores in Math is Electricity…Why was the Power Generation agency was not being detected for soo long in giving its employees a 5 parts match up on their negotiated pension while the rest of Govt. agencies gets only only a macthing l is to 1? (that practice was already discontinue for new hires and Officers and CEOs repponsible for negotiating generous contracts been LET GO..And many more issues regarding the Electricity…and Education which is one of the biggest budgeted ministry..
And the Voters will Decide.
I understand Ducut was appointed by GMA. Why did Pnoy allow her to stay if he’s cleaning up the trash left by GMA?
There are just too many powerful groups lobbying for their people to be appointed in juicy positions in the government for their benefits. We have the big businesses (Makati Business Club, Fil-Chinese Chamber of Commerce), foreign companies, religious groups. So, what’s the difference between Pnoy and other previous presidents who were held hostages by these groups?
Had the Bataan Nuclear Plant, a Marcos project, continued, I think we won’t have such series energy problems. In fairness to Marcos who people called “dictator”, he has a vision about the country’s energy and that Plant was his solution. Unfortunately, Cory scratched it as well as all other Marcos projects even if some were beneficial to the people. For Cory, anything identified with Marcos was evil. Yet, the country’s still paying for the Plant’s loan interest until this day without any benefit.
How long will Malampaya be down for maintenance?
By the way, looking at Ducut’s face reminds me of Atty. Kapunan, Napoles, the recent X-Factor Israel winner Rose, and even singing celebrity Charice’s mother.
ako ang na aalala ko sa pagmumukha ni Ducut ay ang aming dating kusinera. na kung ano ang lapad ng kanyang ginagamit na tadtaran or sangkalan ay siyang lapad ng kanyang mukha.
We need another source of natural gas. We cannot rely on malampaya alone. The backup plan was to run diesel generators which is unacceptable. The malampaya fund was supposed to be used for the development of other sites. It has been in operation since 2001. We should have had another one by now.
I agree with #2, and for #6, the Philippines is a perfect place to develop Solar Energy due to its geographical location and abundant sunlight. In California, a lot of homeowners are now using Solar Energy rather than relying on the PG&E. This can be fully developed in the Philippines, unless the Lopezes and other businessmen- friends of Penoy will make this as their money machine, again, similar to their electricity business. An honest-to-goodness government can sponsor the development of Solar Energy in the Philippines. But I don’t think it will happen in Penoy’s watch. Penoy has no vision for the future of the Philippines. His only vision is to portray a good image for himself, using the yellow media in his usual “Praise Release” and his KKK-owned survey outfit, with its latest incredible survey result where the Yolanda victims came out very satisfied with Penoy’s performance. Only morons would believe that.
#7. Thanks. In fact, Rep Mark Cojuangco wants to resume the Bataan Power Plant. This Aquino government will not and never will agree for obvious reason. It’s simply a Marcos project that would have benefited the people.
…Aquino confessed being powerless about the unconscionable increase because he said, “ERC does not report to us, they are independent of us.”
Bakit pa sya presidente wala naman syang magagawa pala?!
Kung ayaw ni Ramon ang na tumulong, ipa-Ducut na lang yan, nakakaasar!
Let’s take a pause of this Ducut or Bong Revilla stories. There’s the most recent incident that’s more interesting… Popular TV host Vhong Navarro being mauled by a group of men when he visited a girl friend at a condo.
Sa panahon ni Marcos walang reklamo sa pagsingil ng kuryente. Ginusto nila na mapatalsik si Marcos para sila naman ang mangurakot. Kawawang mga taga metro manila, walang tigil pagtaas ng kuryente o pasahe. Dusa ang inabot. Kung ako sa kanila murahin mga kamag anak o kilala na sumama sa edsa nung panahon na iyon.
May bataan power plant pa ba. Kung wala bakit di iyan mag operate.
In addition to #2, Cory Aquino lied to the Filipino people when she mothballed the Bataan Nuclear Power Plant, claiming that it was defective and unsafe to use. But after over 20 years, some engineers certified that it was not defective, giving Rep. Mark Cojuangco the reason to propose for the resumption of its operation. She practically destroyed the good vision of Marcos for the benefit of the Filipinos…As a result of Cory’s vindictiveness, destroying all the good programs of Marcos, where is the Philippines now? During the Marcos years, the neighboring countries in Asia sent their representatives to the Philippines to study how to raise perfect rice crops. Look at the Philippines now, relying its rice importation from the countries that only learned how to produce good rice from the Philippines, which by the way a good source of corruption of the Penoy administration. The Cory kissassers claimed that the darkest history of the Philippines was during Marcos time. WRONG: It was Cory’s time, with 12-hour brownouts everyday for so many months, and yet a lot of blind Filipinos still hailed her as a Saint. Oh, by the way with her good vision for the Filipino people, she change the name of Manila International Airport into Ninoy Aquino International Airport. Good for the Filipinos….
patay na si macoy. wala na din si cory. matagal nang tapos ang termino ni tabako. si erap meyor na ng maynila at si ngongoyang ay nandu’n pa din sa veterans’ hospital at nagpapagaling ng leeg na nilagyan ng pekeng platinum support courtesy ng kanyang baboy na asawa.
panahon ngayon ni penoy at sa kanyang termino nagputukan at sumambulat ang kabikabilang nakakahilakbot na kababalaghan bunga ng kanyang pagtutok sa paggawa ng tuwid na daan kasabay nang pagpipikit-mata sa kapalpakan ng kanyang pinagtitiwalaang gabineteng hindi niya masibak dahil ‘ata takot o ewan.
bilang presidente, KUNG meron mang dapat na habulin sa nagdaang administrasyon na dapat panagutan ay hayaan na lamang gumulong ang batas at parusahan ang dapat na maparusahan KASABAY ng pagtupad sa mga ipinangako noong nangangampanya pa la’ang at pagpapatupad ng mga proyektong kinaligtaan ng mga nagdaang pamahalaan na dapat pakinabangan ng taong bayan. huwag siyang walang bukambibig kundi paninisi sapagkat nagiging patunay lamang ito na wala siyang maliwanag na programa para sa kapakanan ng mas nakararami bagkus ay mga kasangga lamang niya ang nais niyang magtamasa ng sarap habang siya ay nasa malakanyang.
hanggang ngayon ay tila hindi ‘ata naglalagay ng simbolo ng pagiging presidente ng pilipinas itong si penoy dahil ang lahat na palamuti ng kanyang suot na damit ay yellow ribbon.
sino ba ang sinisimbolo niya? ang yellow army o ang sambayanang pinoy?
#15 #16 Yes, I now notice that GMA’s not wearing her neck brace anymore. She could also walk out to welcome and send off visitors.
Recently, five Bishops visited her and held Mass for her. Those could be the Pajero Bishops. Did the Priests also pray over for Napoles? Why do these hypocrites of the church praying for the criminals instead of the poor?
Agree. All the previous presidents either died or retired. Why would Pnoy still use the past administrations as excuse for his incompetence. When he decided to run for President, he knew what was on the table. Same alibi.
Bakit dumalaw ang Pajero Bishops ubos na ang pera na galing sa nakaw na bigay ni Pandak.
or matagal na silang di naabutan ng “BROWN ENVELOPE” kaya kapal muks na sila pupunta.
Sabi ng Bishops ipapag dasal ka naming pero may bayad ah
Ang layunin ni Marcos para sa bataan power plant ay para maging mura ang singil sa kuryente. Marami ang makikinabang. Pero ano ang ginawa. Ang mga uto utong tao na taga metro manila o luzon nakiisa para mapatalsik si Marcos dahil diktador daw. Tarantadong mga uto utong tao, mas mabuti ng diktador ang namumuno pero pero hindi naman nagugutom. Kaysa hindi nga diktador pero gutom palagi.
Mayroon mga tao pumunta sa mga baryo o lugar. Kapag makita na ang bubong ng bahay o ang bahay ay medyo maayos na ay wala ng matatanggap na pera mula calamity fund,. Gagong mga tao kayo, hihintayin pa ba ang pagbigay ng calamity fund bago magpa ayos ng bahay. Magtatlong buwan na. Laging umuulan sa leyte at samar. KALAMIDAD PINAGKAKAPERAHAN NIYO LANG. NATUTUWA LANG KAPAG MAY MGA BANSANG NAGBIBIGAY NG PERA PARA SA BIKTIMA NG BAGYONG YOLANDA. MADAMING UMAASA NA MABIBIGYAN NG CALAMITY FUND PERO MALAPIT NA PUMUTI ANG UWAK AY WALA PA RIN. Mahiya naman kayo sa sarili niyo. Bigyan niyo ng calamity fund ang mga nasiraan ng bahay kahit pinaayos na.
Ang napanalunan ko paglabas ng 825 sa swertres na 18 tawsan ay malapit ng maubos pati mga naipon ko na pera dahil nagpawork na ako para maitayo ang kahoy at pawid na bahay namin. Nasaan na ang calamity fund niyo na ibibigay daw sa mga nasiraan ng bahay. PCSO palabasin niyo 110 para naman may pandagdag ako panggasto para sa pagpagawa ng bahay. Walang internet pa dito hindi ako makapag blog para maipost bahay namin na sinira ng bagyong yolanda.
re #2
Nope, we’re not paying for the BNPP loan anymore. It was a long-term loan programmed for payment over 25 years which obligations Cory promised to fulfill to the Americans in 1986. The 25-year term ended in 2011.
With Ramon Ang as patron, Ducut indeed is “nakasandal sa pader.”
walang makapal na pader na hindi kayang tibagin ng karma. kahit anong tibay ng pader na ‘yan, LUSOT ang kalawit ni kamatayan!
mukhang napoles din itong si zenaida mandoDUCUT.
sa hilatsa ng mukha masisinag kung gaano kaitim ang budhi at ganid na ugali.
sino nga ang nag-appoint sa kanya sa ERC?
may pagmamanahan, walang sablay!
kabilang pala siya sa sirkulo ng la’i ng mga kapampangang hugaling ‘unyango, ‘ane?
‘indi katakataka kung pagkatapos siyang hampunin ni danding sa NPC hay lumipat sa kampo ni harroyo nu’ng mahagaw hang malakanyang mula kay herap.
naging habogado pa pala ni bong pineda. aru, ‘indi nga nakapagtatakang kumapait siya kay ngongoyang.
The real problem in the Energy sector is that there are too many morons in the positions of influence.
Lawyers, economists, accountants, what-have-you, deciding on strictly technical matters usually reserved for engineers. What’s worse, as we have the most expensive cost of energy in Asia, investors should be flocking to the country in hordes, right? Wrong. IPPs are concerned with the constant interference of the courts in almost all energy projects. The two big power plants planned to be onstream has not started construction because of pending issues with the courts which are usually triggered local protests in the plants’ immediate communities.
At the rate we’re putting up huge skyscrapers and condo clusters in many metropolitan areas, we need to accelerate all the power investments we can get or suffer brownout cycles again.
Further down the road, we are not adequately preparing for the future, a scenario where there is less fossil fuel in the mix and more renewables. Who has been assigned that responsibility? Ducut the Lawyer/politician? Jericho Petilla, the politico? Who?
Marcos had Geronimo Velasco – an engineer and he had a well thought-out plan for the future – both near and far. During Cory’s time Cory’s minions were laughing at him because he was building a huge power plant inside his Republic-Asahi Glass plant after EDSA I. Later on, they were begging him to sell his excess power. He had the last laugh. Cory had earlier scrapped the Department of Energy and a small Office of Energy Affairs under her office. That blunder was deadly.
Then, Ramos “borrowed” Cheche Lazaro’s husband, Del, from the Zobels to help him establish the new energy department Congress has just crafted into law. Lazaro’s short stint was followed by UP’s Dean of Electrical Eng’g Dr. Sonny Viray. They worked on the solution and together they solved the Energy Crisis and then some. Lazaro returned to Pilipinas Shell.
In Erap’s time I don’t remember what Mario Tiaoqui had achieved, if any. Tiaoqui was succeeded by a string of more misfits in Gloria’s regime. In fact, in the 9 years of Putot’s presidency, she had 5 Energy Secretaries – each with his own share of money-making scandals except maybe, the poor man Popoy Lotilla. The first two were investment bankers Isidro Camacho – more known for his and his sister’s CODE-NGO Zero Coupon Bond scam rather than any energy-related accomplishment – and Vince Perez who used his position as a springboard for future personal gain rather than for the country which paid his wage. Then Popoy Lotilla whose performance was “unremarkable” was replaced by the ultimate asshole whose ego was more important than his own useless brain he even scattered it all over his mother’s grave with a single bullet. Finally, Nonong Ibazeta had to replace Angelo Reyes even if were just for 3 months. This was his reward for selling the country’s most important asset then, the NPC transmission lines, to the Greedy Group Plus Plus. He was also responsible for the entry of cronies into the Energy industry what used to be engineers-only was now replaced with guys from totally unrelated disciplines: a miner, a port operator, a food executive, a beer brewer, a realtor-cum-phone giant and a very influential pig.
Gloria’s presidency intensified the decline of the Energy department but she had attempted to pursue some positive goals like biofuels which law that prescribes locally-produced additives to the fuel mix in gas stations still has to be implemented to this day. Of course it was motivated, again, by greed, what else were you thinking?
Now in this administration, Almendras served for 3 years and there is nothing in those years that remind me of any accomplishment other than the Power shortage in Visayas, Mindanao. Jericho Petilla, ditto.
If Noynoy thinks buildings, hotels and casinos alone will carry us through progress, he’s dead wrong. He better get a group to rethink our energy outlook because from this end, it doesn’t look good. We’re still geting miniscule foreign investors compared to our neighbors. Almost all have subsidized energy to its citizens and investors. While we have been following IMF recoms on zsro fuel subsidies, our neighbors are attracting more business investments.
Maybe it’s about time we considered subsidy as an investment rather than cost.
Thanks, Tongue.
http://www.thestar.com/news/queenspark/2014/01/27/minimum_wage_climbs_to_11_in_ontario_cohn.html
Tongue @ 26,
In relation to your post, our New Premier got the Hint..from now on She will take the Politics out of decision on when to raise the minimum wage but will index it to Inflation and other economic Fators…the story above is all about it..The Minimum was frozen for 4 years and she is thinking of raising it Retroactive 4 years index to past inflation..that will be decided by her Cabinet..but from now on, it will be an automatic Increase without anymore Political intervention but will be based on the economics..Inflation and other factors..
And here is another good one…when the Project of Upgrading the Mass Transit within the Metro Toronto and Immediate area, the Politicians sat down to talk to figure how to split the $18 billions expected cost and as soon as they agreed which government the Federal, Provincial and Municipal takes the Lion share and how much each will put into the Project..usually its 2/3 Province and 1/3 Federal..the business of Planning and Constructing is now in the Hands of an Independent arms lenght Agency we call Metrolinx…
And yesterday they nicest part of the Project, the UNION EXPRESS is ready for the Opening of the Pan Am games in 2015,the Elevated 26 Kms train express from the Main Station at Downtown Toronto (Union Station) Right at the airport terminals (Pearson International) which the CEO said will allow the passenger the Panoramic View of the Cities on the way…Toronto and Mississauga..the Train will be powered by Clean diesel with provision for Electric power if conversion in the Future is an option.The Projects the Linking of the towns and cities will see completion by 2025 or 2030.
It is expected to take out some 1.2 cars off/in a year, the world’s widest and Bussiest Roadways that is the main artery to the Airport…the 401..and will take only 25 minutes run every 15 minutes schedule…
And in all these billions worth of Projects, so far not an allegation of irregularity…
# 26
Let me add a little bit to the informative post.
In the years of Delfin Lazaro and Viray at the NAPOCOR, they came up with the solution of leasing power plants, as a short-term solution to the power crisis. There were power plants that were coming on stream a little later, so they did not need new power plant acquisitions. So they leased.
The power plant lessors were given five year contracts. The power lessors, however, asked for a guaranteed sale, because they were saying , if you do not buy a minimum level of our power, we lose money. Nobody would invest for a short-term period of five years, if the sale is minimal. If you were buying our plants, then it is okay, because the cost will be spread over thirty years or so (the term, usually, of a BOT (build-operate-transfer) contract.
It is for that reason that the NAPOCOR said, okay, we guarantee purchase of the power. The engineers told Lazaro-Viray “sir, gagamitin naman natin lahat, kulang pa nga. So that was a good deal for the NAPOCOR, also for the investor/lessors.
Now comes the IPPs, brought about by the EPIRA law. They also wanted a guaranteed sale. What? Eh hindi naman short-term. You would be able to recoup the investment over the lifetime of the power plant. In fact, MERALCO owns the IPPs, through its subsidiaries. Ganoon din ang ibang distributors. So there is no basis for the guaranteed sale; but it is a nice cash cow, because you get to charge for power, even if you do not supply it. Masahol pa ito sa laway lang ang puhunan. Ito, ni laway wala.
That is how the consumer got screwed, and continue to get screwed.
The legal question is? Can you collect from a ghost delivery? If no power is produced and delivered, what is the basis of the charge to the consumer? The mere fact that MERALCO has a contract with its own subsidiary?
The MERALCO and the IPPs will insist on the guaranteed sale. But there is a legal dictum, that contracts are reviewed
contra proferentem – against the one who proferred the provision. Got that from Antonin Scalia’s book, “Reading Law”.
In plain English, contracts, if ambiguous, are interpreted as against the one who caused the amibiguity. In this case, the contract was crafted by MERALCO, so any ambiguity, should be interpreted as against it.
All country if there is a calamity do not give money to the government of the Philippines. Better give directly to the victims by not pass with the help of the DSWD. Because you will not sure if it will be give. Gobyernong Pnoy bakit ganun dito aming lugar kapag ang bubong ng bahay ay naayos na ay wala ng matatanggap na yero. Ibig niyo bang sabihin hahayaan lang na maulanan pagkatapos ng bagyo. Ibig niyo bang sabihin hintayin ang pagbigay niyo eh ilang buwan na nangyari ang bagyo. Sinasabi corrupt pamumuno ni Marcos. Ang ginagawa ngayon ay hindi ba isang uri ng corruption. May nakalaan na pera para sa bawat bahay na nasira pero hindi na lang bigyan dahil inayos na. Eh ang pera na para doon sa bulsa na lang ng namamahala. Makonsensya naman. Ayusin ang pagserbisyo. Hindi iyon ang tuwid na daan na pinangangalandakan niyo.
sax, the IPP contracts were priced by capacity (Pesos per kilowatt) rather than demand (pesos per kilowatt hours). So the IPP was selling capacity “take-or-pay”. The “hours” unit limited the sale to those consumed so the brilliant boys charged by capacity.
The problem is this: due to the acute shortage, almost all contracts were baseload plants instead of a mix of baseload and peaking. Baseload are usually 200MW and up which are bigger generators usually coal, combined cycle, natural gas and the smaller renewables hydro and geothermal – all comparably cheaper than diesel-fired thermal plants for peaking.
The diesel plants were mostly the Japanese Niigata Power Barges used for emergency and peaking exclusively in the past. I was supplying parts for those when I was working for Niigata’s local distributor. Napocor retired and sold those old machinery to private producers/coops (hint: just before the power crisis!)
If the barges were charging a more expensive price for the same market why can’t they? So they did. I’m not also sure if there would have been a shortage had Napocor NOT retired the power barges.
We had won A contract to build-operate-transfer one of those IPP baseload plants. 25-year take-or-pay with option to double capacity. Our price was $0.06 per kilowatt as signed by Cory and I think Monico Jacob. In reality, we were “transferring” a retired 300MW combined cycle plant from vic’s Walden North in Canada to Bauang, La Union but as soon as Ramos took over, the contract was canceled and we were replaced by a new supplier using our technical study data. Garapal. Our Canadian partner was shocked he vowed to never do business in this country again, no thanks to Guido Delgado and FVR.
How do they bill? They multiply the contract price, say $0.06 x plant capacity x 24 hrs. x 25 yrs
Embedded delihensyador! Just curious, why are there so many un confirmed secretaries in our government? So confirmation is nothing now a days? And yet some are confirmed but where place there for other reasons?!!! No wonder we are always suffering the consequences! Would we Expect for more? Do we as a people deserve this? Who gave them the right to do that? Just asking?