Bayan Chairman Hits BLCI's Move To Increase Power Rate

The issue of passing on the Bohol Light Company Inc. franchise tax as additional burden to the already overtax consumers, is unfair and exploitative.

BAYAN provincial chairman John Ruiz said the group is supporting the opposition on this move that adds burden to consumers.

A bill pending in Congress, sponsored by third district Congressman Adam Relson Jala is pushing for the revocation of the BLCI franchise issued by the Energy Regulatory Commission.

Bayan also commends Tagbilaran City Mayor Dan Neri Lim in personally leading the people as oppositor and intervenor to BLCI's application of passing such burden to the people.

"It is unfair in the sense that as a profit-oriented company, they must pay taxes as their obligation and it must come from their profits and not from the consumers' pocket. It is exploiting the Electric Power Industry Reform Act to exploit the poor consumers," the statement sent to the STANDARD said.

Ever since the conception of privatization or joint venture agreement of the two provincial public utilities, water and power, BAYAN-Bohol had manifested its opposition in its statements, pickets and rallies.

"Vital services such as WATER and POWER must be in the hands of the people or the state and not in the hands of profit-hungry capitalists, that could easily exploit the consumers," the statement added.

"Power rates today remain high because of a combination of factors and policies embodied in the Electric Power Industry Reform Act as well as historical circumstances in the maldevelopment of the power sector. The EPIRA, which was approved in 2001 by the Arroyo administration, laid the Groundwork for the deregulation and privatization of the power sector. It also paved the way for the "unbundling" of power rates into generation, transmission and distribution."

"State control and development of the power sector is a must if we are to seriously address the high cost of power. State ownership should mean the development of the power capacity of the country so that the supply of affordable energy is ensured. Regulation of rates is also a must in order to protect consumers from questionable and onerous charges. The EPIRA must be junked if we are to seriously address High power rates. "

The passing on of franchise tax to the consumers must be opposed. Our government officials must ensure the protection of the people from such unfair and exploitative actions of private vital services provider.

Another burden that is being passed on to the consumers is the 12% Value Added tax or VAT on power, it must also be removed, to give consumers immediate relief in times when everything is increasing except the people's income. - The Bohol Standard