Energy secretary asked to quit for ‘lawyering’ for giant oil forms

By Charlie V. Manalo and Gerry Baldo

10/16/2009

Bayan Muna secretary general Nathanael Santiago yesterday said Energy Secretary Angelo Reyes’ arguments against putting a cap on oil price increases are yet another iron-clad reason to repeal the Oil Deregulation Law.

Earlier this week, Reyes was quoted as saying the Oil Deregulation Law prohibits government from intervening and regulating prices of petroleum products, adding the only thing the government can do is monitor the suggested retail prices.

“This is precisely why the Oil Deregulation Law must be junked. The country is at the mercy of the oil companies who, at the slightest whim and flimsiest justification, can jack their prices at the sorry expense of consumers. Now that the country is under a serious state of emergency because of the floodings and the landslides, the prices of oil and electricity must be controlled as a means to stop the firms from taking profiteering advantage. A more humane argument, however, is evident: at a time of crisis, people have the least means, and there is no way that they will be able to adjust to more price increases without seriously compromising funds meant for their basic necessities,” Santiago said.

Santiago waxed indignant over Reyes’ apparent defense of the oil companies and the Oil Deregulation Law.

“Is Secretary Reyes an employee of Shell, Caltex or Petron? Why is he the one defending the oil companies and protecting their abusive rights under an even more abusive law? On who’s side is the secretary on? His mandate as head of the Energy department is not to act as spokesman for the oil cartel but to find means and measures on how to make energy and fuel more accessible, not to mention more affordable, for the public. Instead here he is batting for the oil companies!” Santiago said.

At the same time, Santiago scored the Energy Regulatory Commission (ERC) for being yet again lenient with Meralco.

The ERC has ordered Meralco to refund its customers a total of P278 million in net over-recoveries, equivalent to 1.07 centavos per kilowatt-hour, within a period of one year. The benefit to consumers, however, is said to be minimal as this would translate to a refund of only P1.07 on the monthly electricity bills of those consuming 100 kwh, and P2.14 for those consuming 200 kwh.

“I certainly hope that ERC officials are not expecting a pat on the back on managing to come out with this order. It’s a weak directive which the public isn’t even certain the Meralco will obey much less implement. Again, we find the ERC severely lacking in backbone, only pretending to swat the Meralco in the guise of protecting its superprofits at the expense of consumers,” Santiago said.

He added the nation was under a state of serious economic turmoil further exacerbated by the killer floods and the landslides.

“The least these companies like Meralco and Shell, Caltex and Petron can do is to set aside however temporarily their voraciousness and throw their customers a lifeline in the form of rate cuts and price caps,” he said.

Santiago reiterated the call of Bayan Muna and other progressive party-list groups for the immediate nationalization of the power industry and the scrapping of electricity privatization.

Meanwhile, lawmakers yesterday renewed their call for Reyes to resign from his post after taking the cudgels to defend the oil companies from charges of alleged overpricing.

The lawmakers were reacting to a statement made by Reyes that placing petroleum products under the price ceiling would violate the Oil Deregulation Law.

Anakpawis Rep. Joel Maglunsod, Akbayan Rep. Ana Theresia Hontiveros-Baraquel and Nueva Ecija Rep. Edno Joson said Reyes should stop issuing statements which tend to defend the oil firms from allegations of overpricing.

Reyes, according to Maglunsod, should resign as soon as possible and spare the people from further misery following the devastation brought about by typhoons “Pepeng” and “Ondoy.”

“Mas malaki ang nagawang violation ng DoE na hindi nila tinutupad ang mandate nila to monitor the oil companies. Palaging increase ang presyo ng langis kaya inutil si Secretary Reyes, dapat mag-resign na siya,” said Maglunsod.

Baraquel, for her part, said allowing the oil firms to raise their prices at this time is the height of irony.

“Mas paglabag sa batas ang hayaan ang Big Three na itaas ang mga presyo ng kanilang mga petroleum products ngayong nasa relief at patungong rehab pa lang ang ating mga kababayan pagkatapos ng Ondoy at Pepeng,” Hontiveros said.

Under RA 8479, the DoE is “required to maintain a periodic schedule of present and future total industry inventory of petroleum products for determining the level of supply and to publish this matter as this is of public interest.”

Publishing the inventories is necessary to ensure fair play in the downstream oil industry, Joson said.

Pilipinas Shell on Tuesday hiked its pump prices by 25 centavos followed by Seaoil and Chevron.

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