Women & Children Leading the Fight to Keep Women & Children Leading the Fight to Keep Mindanao’s Hydropower Resources in Mindanao’s Hydropower Resources in

People’s HandsPeople’s Hands

How We Got How We Got StartedStartedDr. Melchie Ambalong, Dr. Melchie Ambalong, Mindanao Commission Mindanao Commission on Women (MCW) Vice-on Women (MCW) Vice-Chair, is also Chair Chair, is also Chair Emerita of the Lanao Emerita of the Lanao Power Consumers Power Consumers Federation (LAPOCOF)Federation (LAPOCOF)

She has been a power She has been a power sector reform advocate sector reform advocate even before the EPIRA even before the EPIRA law was passed in 2001law was passed in 2001

Why it is a Women’s Why it is a Women’s IssueIssueWomen are the major users of energyWomen are the major users of energy

Our electricity bill accounts for nearly 15% Our electricity bill accounts for nearly 15% of the household budget so any increase in of the household budget so any increase in power rates has an impact on our budgetpower rates has an impact on our budget

Access to electricity is important to Access to electricity is important to women’s productive and reproductive roles women’s productive and reproductive roles so lack of access exacerbates the burden so lack of access exacerbates the burden on women on women

Women’s ability to participate and voice Women’s ability to participate and voice their energy needs in decision-making at their energy needs in decision-making at all levels of the energy system is critical to all levels of the energy system is critical to any reform of the power sector.any reform of the power sector.

Mindanao women are breaking the Mindanao women are breaking the silence and asserting their right to silence and asserting their right to

be heard on Mindanao’s vast be heard on Mindanao’s vast energy resourcesenergy resources

Starting with Agus Starting with Agus PulangiPulangi

The Agus Pulangi The Agus Pulangi Hydropower Hydropower Complex supplies Complex supplies 52% of 52% of Mindanao’s Mindanao’s electricity needselectricity needs

Under the EPIRA Under the EPIRA law, it was up for law, it was up for privatization by privatization by 20112011

The EPIRAThe EPIRAElectric Power Industry Reform Act (EPIRA) or Electric Power Industry Reform Act (EPIRA) or Republic Act 9136 passed on June 26, 2001 Republic Act 9136 passed on June 26, 2001 after seven years of congressional debate and after seven years of congressional debate and court casescourt cases

It has three main objectives: (1) to develop It has three main objectives: (1) to develop indigenous resources; (2) to cut the high cost indigenous resources; (2) to cut the high cost of power in the Philippines; and (3) to privatize of power in the Philippines; and (3) to privatize power assets to pay off NAPOCOR’s debtspower assets to pay off NAPOCOR’s debts

It requires state-owned utility National Power It requires state-owned utility National Power Corporation (NAPOCOR) to break-up its Corporation (NAPOCOR) to break-up its vertically integrated assets into smaller sub-vertically integrated assets into smaller sub-sectors such as generation, transmission, sectors such as generation, transmission, distribution and supply for privatizationdistribution and supply for privatization

Selling NAPOCOR’s Selling NAPOCOR’s AssetsAssets

National Transmission National Transmission CorporationCorporation (TRANSCO) (TRANSCO) to assume Napocor’s to assume Napocor’s substation and substation and transmission assetstransmission assets

Private Sector Assets and Private Sector Assets and Liabilities Management Liabilities Management (PSALM) (PSALM) CorporationCorporation to to handle the privatization handle the privatization of NAPOCOR’s assets and of NAPOCOR’s assets and the management of its the management of its liabilitiesliabilities

In 2001, two subsidiary companies were In 2001, two subsidiary companies were created: created:

What EPIRA Has DoneWhat EPIRA Has DoneIn 2008, the In 2008, the National Grid Corporation of the National Grid Corporation of the PhilippinesPhilippines (NGCP), a private corporation, got (NGCP), a private corporation, got the franchise to manage, operate and maintain the franchise to manage, operate and maintain TRANSCO’s power transmission function TRANSCO’s power transmission function effectively privatizing the country’s power effectively privatizing the country’s power transmissiontransmission

As system operator of the power grid, NGCP has As system operator of the power grid, NGCP has the sole power to decide who gets electricity the sole power to decide who gets electricity when and for how muchwhen and for how much

PSALM has privatized more than 91% of all PSALM has privatized more than 91% of all NAPOCOR power plants yet the debt remains at NAPOCOR power plants yet the debt remains at US$16.7 Billion US$16.7 Billion (as of September 2011)(as of September 2011), , more more than the original debtthan the original debt of US$16.4 Billion in 2001 of US$16.4 Billion in 2001 before the passage of EPIRAbefore the passage of EPIRA

Environmental ChargeEnvironmental ChargeSection 34 of EPIRA provides that all power Section 34 of EPIRA provides that all power consumers must pay an Environmental Charge of consumers must pay an Environmental Charge of P0.0025 per kilowatt hour monthly to be used P0.0025 per kilowatt hour monthly to be used solely for watershed rehabilitation and solely for watershed rehabilitation and managementmanagement

Collections and disbursements as of March 31, Collections and disbursements as of March 31, 2010: 2010:

Total CollectionTotal Collection P 775,249,304.76P 775,249,304.76

AvailmentsAvailments P 338,928,492.72P 338,928,492.72

BalanceBalance P 436,320,812.04P 436,320,812.04

Lanao-Agus Lanao-Agus ReforestationReforestation

Total Area: 194,160 Total Area: 194,160 hectareshectares

Forested: 151,094 Forested: 151,094 hectareshectares

Without Forest Cover: Without Forest Cover: 43,066 hectares43,066 hectares

NAPOCOR reforestation NAPOCOR reforestation from 1992-present: from 1992-present: 2,004 hectares only2,004 hectares only

MARAWI CITY

ILIGAN CITY

Lanao del Sur

Lanao del Norte

Pulangi ReforestationPulangi Reforestation

Total Area: 1.8 M Total Area: 1.8 M hectares, second hectares, second largest in the countrylargest in the country

Watershed Reservation: Watershed Reservation: 309,750 hectares309,750 hectares

Without Forest Cover: Without Forest Cover: 192,368 hectares or 192,368 hectares or 60% is devoid of trees60% is devoid of trees

Reforested as of 2006: Reforested as of 2006: 500 hectares only500 hectares only

Where do the hundreds of Where do the hundreds of millions of pesos collected as millions of pesos collected as “environmental charge” for “environmental charge” for

reforestation go? reforestation go?

Who is responsible Who is responsible and accountable for it?and accountable for it?

Impact on Power Impact on Power RatesRates

June 2001 June 2001 Average Retail Average Retail

PricePrice

March 2011March 2011Average Retail Average Retail

PricePrice

LuzonLuzon P P 5.32/Kwh5.32/Kwh LuzonLuzon P P

9.84/Kwh9.84/Kwh

VisayasVisayas P P 5.21/Kwh5.21/Kwh VisayasVisayas P P

8.19/Kwh8.19/Kwh

MindanaMindanaoo

P P 3.52/Kwh3.52/Kwh

MindanaMindanaoo

P P 6.70/Kwh6.70/Kwh

EPIRA is an EPIRA is an Epic FailureEpic Failure

It did not reduce power costs.It did not reduce power costs.

Privatization of NAPOCOR’s Privatization of NAPOCOR’s assets did not pay off its assets did not pay off its debt, but increased it.debt, but increased it.

Power capacity was not Power capacity was not increased, there are more increased, there are more brownouts instead.brownouts instead.

Agus River, 36.5 Agus River, 36.5 kmkm

Pulangi River, 320 Pulangi River, 320 kmkm

And yet the sale goes on...And yet the sale goes on...

The People of Mindanao The People of Mindanao have clearly spoken.have clearly spoken.

House Bill No. 7106 filed House Bill No. 7106 filed by Iligan City, Lanao del by Iligan City, Lanao del Norte Rep. Vicente Varf Norte Rep. Vicente Varf Belmonte excluding Belmonte excluding Agus Pulangi Agus Pulangi Hydropower Complex Hydropower Complex from privatizationfrom privatization

House Resolution No. House Resolution No. 107 deferring the sale 107 deferring the sale of Agus Pulangi of Agus Pulangi Hydropower Complex Hydropower Complex pending review of EPIRApending review of EPIRA

House InitiativesHouse Initiatives

Senate Bill No. 3182 Senate Bill No. 3182 filed by Senator filed by Senator Gregorio Honasan II Gregorio Honasan II excluding Agus Pulangi excluding Agus Pulangi Hydropower Complex Hydropower Complex from privatizationfrom privatization

Senate President Juan Senate President Juan Ponce Enrile has Ponce Enrile has pushed for the review pushed for the review of EPIRAof EPIRA

Senate InitiativesSenate Initiatives

Multi-Sectoral Multi-Sectoral OppositionOpposition

Lanao Power Consumers FederationLanao Power Consumers Federation

Mindanao Commission on Women Mindanao Commission on Women

Confederation of Mindanao Governors and Confederation of Mindanao Governors and Mayors Mayors

Mindanao Congressional BlocMindanao Congressional Bloc

Various local government units in MindanaoVarious local government units in Mindanao

Association of Mindanao Rural Electric CoopsAssociation of Mindanao Rural Electric Coops

Mindanao Chambers of CommerceMindanao Chambers of Commerce

Regional Development CouncilsRegional Development Councils

Freedom from Debt CoalitionFreedom from Debt Coalition

NAPOCOR Employees AssociationNAPOCOR Employees Association

We Oppose We Oppose PrivatizationPrivatization

Because Agus Pulangi Hydropower Because Agus Pulangi Hydropower Complex (APHC), which is the source of Complex (APHC), which is the source of more than half of Mindanao’s electricity more than half of Mindanao’s electricity needs, keeps our cost of power relatively needs, keeps our cost of power relatively low and cheaper than the rest of the low and cheaper than the rest of the countrycountry

Because passing on ownership of APHC Because passing on ownership of APHC to private hands will be giving the new to private hands will be giving the new private sector owner excessive market private sector owner excessive market power controlling 51% of Mindanao power controlling 51% of Mindanao market and power grid (a violation of market and power grid (a violation of EPIRA)EPIRA)

We Oppose We Oppose PrivatizationPrivatization

Because electricity is a public utility and Because electricity is a public utility and a basic need, it should not be traded like a basic need, it should not be traded like any other commodityany other commodity

Because private power costs more, at Because private power costs more, at least 20% moreleast 20% more

Because in a privatized electricity Because in a privatized electricity system, the price of electricity is driven system, the price of electricity is driven up by the added costs of profits, higher up by the added costs of profits, higher returns for the banks that finance private returns for the banks that finance private power projects and the fees of many power projects and the fees of many consultants and brokersconsultants and brokers

We Oppose We Oppose PrivatizationPrivatization

Because Agus River and Pulangi River, Because Agus River and Pulangi River, which come from Lake Lanao, are part of which come from Lake Lanao, are part of the ancestral domain of Mindanao’s the ancestral domain of Mindanao’s indigenous peoples notably the Maranao, indigenous peoples notably the Maranao, the Pulangiyon Manobo, and the Higa-the Pulangiyon Manobo, and the Higa-unonunon

Because selling this ancestral domain to Because selling this ancestral domain to the highest bidder will stand in the way of the highest bidder will stand in the way of a peaceful settlement between the GRP a peaceful settlement between the GRP and the MILF and the MILF

Because Mindanao’s vast hydropower Because Mindanao’s vast hydropower resource is our children’s heritage, it resource is our children’s heritage, it should not belong to one private ownershould not belong to one private owner

We Oppose We Oppose PrivatizationPrivatization

Because privately-owned electrical utilities Because privately-owned electrical utilities have a poor track record in terms of have a poor track record in terms of undertaking environmentally-responsible undertaking environmentally-responsible initiatives unless there is a lot of money to initiatives unless there is a lot of money to be made so it is a climate crisis riskbe made so it is a climate crisis risk

Because the power industry structure in Because the power industry structure in the Philippines is geared towards the Philippines is geared towards monopoly/oligopoly rather than monopoly/oligopoly rather than competition competition

Because market demand is too small in Because market demand is too small in Mindanao for there to be enough players Mindanao for there to be enough players to compete in a level playing fieldto compete in a level playing field

We do not want to sell We do not want to sell the Agus Pulangi the Agus Pulangi

Hydropower Complex Hydropower Complex because it is our people’s because it is our people’s

treasure.treasure.

It keeps our power cost It keeps our power cost low and earns money low and earns money for the government.for the government.

Agus Pulangi is NOT Agus Pulangi is NOT LosingLosingIt is a NET EARNERIt is a NET EARNER

The P15 B reported The P15 B reported losses are actually losses are actually paper losses paper losses (representing (representing depreciation and depreciation and amortization)amortization)

It actually It actually subsidizes the subsidizes the payment for payment for onerous IPP onerous IPP contracts from the contracts from the past past administrationadministration

If properly maintained and If properly maintained and when IPP contracts of when IPP contracts of

losing assets expire, it is losing assets expire, it is projected to increase projected to increase more more

than four timesthan four times its current net earningsits current net earnings

PNoy’s Response to Power PNoy’s Response to Power Crisis: Crisis:

Pay more or live with Pay more or live with brownouts! brownouts!

Because PNoy Because PNoy insists on insists on

privatizing Agus privatizing Agus Pulangi, the Pulangi, the

people will “buy” people will “buy” the power the power complex complex

collectively.collectively.

We will “buy” it We will “buy” it so that it will be so that it will be

owned by the owned by the people now and people now and in the future. in the future.

If there are 21 million people in Mindanao If there are 21 million people in Mindanao and every man, woman, and child pledges at and every man, woman, and child pledges at least P50, we can raise at least P1 Billion in least P50, we can raise at least P1 Billion in

pledgespledges

Why PIPOL’S Why PIPOL’S POWER?POWER?

To remind PNoy who his real To remind PNoy who his real boss is -- the very people who boss is -- the very people who toppled a dictator and toppled a dictator and installed the country’s first installed the country’s first woman president, his motherwoman president, his mother

Power -- political and Power -- political and electrical -- must remain in electrical -- must remain in people’s handspeople’s hands

From “outage” to “outrage” From “outage” to “outrage” -- collective action will change -- collective action will change the people’s feeling of the people’s feeling of powerlessness to being powerlessness to being powerfulpowerful

Women and Children Lead PIPOL’S Women and Children Lead PIPOL’S POWERPOWER

Here’s how you Here’s how you can join us...can join us...

Set up a Set up a Pipol’s Power Pipol’s Power Pledging Pledging Station in Station in your your community.community.

Organize a Organize a forum to forum to make people make people aware of the aware of the issues.issues.

Both Houses of Congress (Senate & Both Houses of Congress (Senate & HoR)HoR)

Provincial/City/Municipal/Barangay Provincial/City/Municipal/Barangay CouncilsCouncils

Lobby Your Lobby Your RepresentativesRepresentatives

to Change the Lawto Change the Law

Join Our Online Join Our Online CampaignCampaign

http://pipolspower.blogspot.com//

http://www.facebook.com//pipolspowerprojectpipolspowerproject

https://twitter.com/PipolsPower

Let’s show PNoy Let’s show PNoy Mindanao’s Mindanao’s

Power.Power.

Let’s show PNoyLet’s show PNoywho’s the boss.who’s the boss.

Now na!Now na!

Before he delivers his State of the Before he delivers his State of the Nation Address (SONA) on July 23, Nation Address (SONA) on July 23,

2012...2012...