BLOATED BILL STILL THERE: We’ve kicked around too long the issue of soaring electricity price, pinpointed the root of the problem, and have gone wild blaming one another. But when we look at our latest electric bill, we still see the bloated bottomline staring at us.

To summarize the prolonged debate, we say that the price of electricity has gone up mainly because of two things — Inefficiency and Corruption. That much is clear to us at this point.

We use the term “inefficiency” to refer to the National Power Corp. system not being able to produce the maximum amount of electricity at minimum cost with minimum wear and tear on the system. The term “corruption” refers to well-placed individuals with sticky fingers grabbing a piece of the action and thereby contributing to the cost.

Aside from the expense incurred in producing and distributing electricity plus the reasonable profits tacked on, we captive consumers are also being made to pay for the high cost of inefficiency and corruption. That is not fair, and that is what we consumers are angry about.

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INEFFICIENCY & CORRUPTION: Part of our rage should now be directed at looking for two things: immediate relief, and long-term measures to lower costs by improving efficiency and cutting corruption. Along the way, somebody should also collar the corrupt officials and give them a lethal electric shock.

President Gloria Macapagal Arroyo’s order scaling down and suspending the collection of PPA (purchased power adjustment) charges is one welcome immediate relief. But it does not offer a lasting solution. Suspension just postpones the inevitable since at some point in the future the accumulated PPA costs will still have to be paid somehow.

The remedial measures being noisily debated in Congress and the media are just variations of the GMA order. Please understand that our politicos have to get into the picture and project an image of care and concern for consumers.

But the circus reeks with hypocrisy. Lawmakers shedding crocodile tears tell us that we won’t have to pay directly for the PPA in the meantime, but they neglect to impress on us that the PPA will still be collected indirectly from us via taxes. And you’ll never catch them saying that they will give up their pork barrel and apply it to lightening our PPA burden.

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CLOSE INEFFICIENT PLANTS: To lower production costs in the midst of excess capacity, Napocor could close some of its own inefficient plants. As it is, Napocor is saddled by too many underutilized generators that just lower the system’s average efficiency and raises average generation costs.

Insiders tell us that Napocor can mothball its dirty Calaca and Masinloc coal-fired generators (600 megawatts each) and other inefficient and polluting plants for a total of 2,000 mw. These Napocor plants do not have “take or pay” contracts that force payment of full rated capacity regardless of actual output.

With these plants out of the way, Napocor can then raise the output of IPPs (independent power producers) enjoying “take or pay” contracts. It’s already paying them for fictitious full capacity anyway, so why not raise their actual production and have Napocor get its money’s worth?

The savings could be used to help lower the average generation cost of the remaining plants linked to the nationwide system.

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WHO GETS COMMISSIONS?: Then there is the matter of Napocor reportedly holding an exclusive contract with the IPPs to procure their fuel, such as coal and bunker fuel, and for them to buy only from/through it.

That’s a lot of money. Who gets the fat commission? For public enlightenment, the Napocor should be given a chance to answer the question. The commissions should go directly to Napocor, not to individuals, and the amount used to help lower the cost of electricity.

Leaner operations could be realized, insiders tell us, if Napocor would improve its transmission system. It is useless for the more efficient plants to operate at optimum capacity if their output cannot be transmitted through non-existent or ageing Napocor lines.

While the Napocor has splurged on excess generation capacity, it has reportedly neglected the upgrading of its transmission facilities. We’ve been told that budgets for transmission are usually so stripped to the bone that the usual sticky fingers do not find them as interesting as padded generation contracts.

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CHEAPER ELECTRICITY, ANYONE?: This brings us to the proposal of the Manila Electric Co. (Meralco) to be allowed to operate at full capacity its two IPPs so it can buy electricity from them at prices much lower than the P4.40/kilowatt-hour that Napocor has been charging.

Meralco promises to pass on the savings to consumers to lower their electric bill, but Napocor has sat on the proposal, giving “transmission constraints” as reason. The Napocor seems to be saying that the idea of Meralco buying cheaper electricity from its own IPPs is not feasible within the present grid system.

If allowed to operate at optimum levels, Meralco’s IPPs — First Gas in Sta. Rita and San Lorenzo in Batangas City, and Quezon Power in Mauban, Quezon — said they could sell electricity at P3.40/kwh and P3.80/kwh, respectively, or lower than Napocor’s price of P4.40/kwh. First Gas uses cheaper gas from the Malampaya offshore fields near Palawan.

We sense that it is not just the alleged “transmission constraints” that blocks this avenue for cheaper electricity in the Meralco franchise area.

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CLUMSY BUCK-PASSING: Former President Fidel V. Ramos, meanwhile, is all over the place blaming a lot of things instead of admitting like a man that he is partly to blame for the huge surplus of generating capacity that has bloated costs and the price of electricity.

He has added a third — President Erap Estrada — to what he called the “double whammy” of the regional financial crisis of 1997 and the El Nino phenomenon that, he said, wrought havoc on his inspired solution to the power crisis of the early 1990s.

He is saying in effect that all those IPPs to whom he gave sweetheart contracts would have been operating now at optimum level (instead of just lying idle or operating below capacity) if only Erap did a good job of perking up the economy and raising the demand for electricity.

Lately he has added former President Cory Aquino to his blame list. He traced the power crisis to Cory’s mothballing of the 600-megawatt Bataan nuclear plant in 1997 without providing for alternative sources.

Such clumsy buck-passing is unbecoming a former president, a gentleman and an officer.

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RAMOS’ DAWN DEALS: The emergency powers granted Ramos by Congress in 1993 to address the power crisis was good for only one year.

Yet, as late as June 1998, we saw FVR still rushing those juicy contracts just a few days before he was to turn over the presidency to Erap. Those who call the contracts “midnight” deals are being kind to FVR, because it was almost dawn of the next day when he signed them.

Samples of those “dawn” deals: Mt. Apo 2 geothermal (48 mw, $152 million investment cost) and the Mindanao coal 1 (200 mw, $310 million) plants. Why did FVR show unusual interest by taking time to follow up the deals with his successor and bother to advise Erap that they were good projects that would help the country?

We’ve noticed also that the system was already awash with excess capacity by 1997, yet FVR continued to sign on IPPs left and right. Samples: San Pascual Cogen (304 mw, $152 million), San Roque multipurpose project (345 mw, $1.191 million) and Ilijan natural gas plant (1,200 mw, $960 million).

Clumsy, if you ask us.

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DESPITE OR BECAUSE OF ERAP?: Figures from the National Economic and Development Authority show that from the 5.3 percent growth of the GNP (gross national product) of the previous quarter (4Q, 1997), the GNP dropped by 2 percent in the first quarter of the next year (1998) and by .30 percent in the second quarter after the regional financial crisis hit. Ramos was then still in command.

Erap was sworn in in June 1998 and the crisis fell on his lap even before he could familiarize himself with the layout of the Executive offices.

The GNP froze to zero growth in the third quarter (July to September), with Erap then the new president. In the next or fourth quarter, the GNP fell lower with a negative 1.2 percent growth.

But while neighbors were reeling under negative growths, the country started to creep up the next year. Was this despite or because of Erap? We don’t know, but while FVR would make us believe that Erap bungled everything he had built, NEDA figures show that despite the regional crisis, the GNP managed to grow under Erap.

NEDA figures show that the GNP growth averaged 3.6 percent in 1999 with an impressive 4.8 percent growth logged for the last quarter of that second year of Erap. The following year (2000), the GNP growth went higher to 4.2 percent.

Maybe FVR should look for another tack to nail Erap to the IPP-PPA mess.