In an effort to appease a Metro Manila public crushed by unstable jobs and livelihood and ever-rising prices of basic commodities, power and water, Gloria Macapagal-Arroyo called on Manila Electric Co. (Meralco) to reduce its rates. For this purpose she directed the Department of Trade and Industry to file an omnibus petition with the Energy Regulatory Commission (ERC).

While the action is welcome and in fact long overdue, we are wary of the motives behind it. Ms Arroyo is under pressure to resign from office in the face of serious allegations of corruption and evilness. On the other hand, there is talk that her family has more than a foothold in the power sector. For these reasons, we question the offensive on Meralco. Is it a sinister attempt to consolidate her family’s stake in the power sector, at the same time to gain some public sympathy?

Lest we forget, the Arroyo family now has a sizable influence in National Transmission Corp. (Transco), courtesy of the recently questionable winning bid of Monte Oro Grid Resources for the power transmission monopoly. Diosdado “Buboy” Macapagal Jr., the President’s brother, is closely affiliated with Walter Brown, one of the owners of Monte Oro. Another stakeholder, Enrique Razon, is a close friend of First Gentleman Mike Arroyo and the treasurer of the administration’s Team Unity in the senatorial campaign last year.

Ownership of the national transmission grid is highly lucrative and very strategic. It can be used to favor one generator over another, to favor loyal supporters over critics. While transmission is regulated by the ERC, let us not forget, Ms Arroyo appoints the ERC commissioners and her son, Rep. Mikey Arroyo, heads the energy committee of the House of Representatives. This is rent-seeking of the highest order.

We remain critical of Meralco’s high electricity rates and denounce the Lopezes’ practice of favoring affiliated independent power producers (IPPs) even when cheaper electricity is available. We have long maintained that Metro Manila consumers rightfully own Meralco. This however does not mean that we condone a power grab by the power-hungry and infinitely greedy.

The Electric Power Industry Reform Act (EPIRA) was one of the first laws signed by Ms Arroyo in 2001. Like the ZTE national broadband network deal, she knew it was flawed but she signed it nevertheless. Unlike the ZTE deal, the EPIRA has been in effect for the past seven years and has resulted in 15 rate hikes instead of the promised cheaper electricity. The onerous IPP contracts were reviewed and found to be onerous, but not renegotiated. And now the flaws are being used to the advantage of Ms Arroyo and her cabal.

The Freedom from Debt Coalition vehemently condemns this.

We reiterate our call for affordable electricity and for a new energy law that does not contribute to global warming and that recognizes consumers as equal partners in the sector. We will pursue our vision of an environmentally sustainable, accountable and democratic power sector in a post-Arroyo scenario.

MILO TANCHULING, secretary general, Freedom From Debt Coalition, 11 Matimpiin St., Barangay Pinyahan, Quezon City