Press Release
March 11, 2015

TRANSCRIPT OF INTERVIEW OF SEN. SERGE OSMENA

Serge: I don't know when the next bicam would be, it all depends upon whether the House is willing to acceot the compromise, which we offered and which is bigger than what they would have gained.

Alam niyo, ganito po iyon. Nag-agree na kami sa lahat halos ng conflicting issues sa bicam. Pero pagdating sa last issue, iyong no pass-through, ayaw silang pumayag na kukunin natin sa CBK 'yung assistance fund para sa consumers dito sa Luzon. Explain ko sa inyo ano itong sa CBK.

Nasilip po natin na may extra na 500MW ang CBK na hindi nila dineliver all this time. If you remember, I investigated CBK, that was the IMPSA case na dumating pa dito si President Erap, nag-testigo siya na he was offered a $14M bribe for him to approve the contract of IMPSA to rehabilitate and expand Caliraya-Botocan-Kalayaan pump storage plant, that's the hydropower plant dun sa Lake Caliraya. I know that they expanded it to 750MW. Hiningi ko iyong delivery ng CBK at nakita ko na the most that they deliver is 220 MW. Pinuntahan ko dun sa taas, tinanong ko dun sa Hapon ngayon na may-ari, binenta na ng IMPSA sa Japan Power, J Power ang tawag dun. Tinanong ko anong nangyari, meron kang extra na 500MW dito, bakit hindi ninyo dinedeliver iyan eh kailangan na kailangan iyan? May problema po kami kasi wala kaming power paakayat. Ngayon kasi iyang CBK, ganito po iyan. 2 bodies of water beside each other na mataas ang headroom. Sa daytime, nagre-release ng water, gumagana ang turbine and they are delivering 750MW. Sa gabi po, nare-reverse iyong turbine, at pina-pump ang tubig galing sa Laguna de Bay, binabalik po dun sa Lake Caliraya. It's a very useful plant but you can only do it when you have 2 lakes beside each other. This was built buy American engineers in 1930 pa, and Meralco po ang nagpatayo ng first power plant dun. So, bakit hindi ninyo ginagamit? This is a crime. Sir, wala po kaming extra power to pump up the water. We have 3 pumps but we can only use 2. So sabi ko, ang dali-daling order-an ang NGCP to build a new line so puwede ng gamitin iyong 3 pumps. So now we will be getting, kasi de-rated na sila, we will be getting 720MW for 6 hours, peaking hours ito ha from 11 o'clock to 3 o'clock and 7 o'clock to 9 o'clock everyday. So, manna from heaven. Kasio nagkakandarapa kami dito, naghahanap kami ng 1400MW sa ILP na hindi naman magagamit ng full-time, 1 hour or 2 hours lang iyan kasi maliliit na generating sets atsaka luma na iyong iba. And here, we have 500MW plus that we will deliver.

Pag chinarge nila sa WESM, sa WESM kasi iyah eh, aabot po, ang estimate, aabot ng P13 per kilowatt hour kasi peaking eh. May shortage dito during the summer. April iyan. And in May, aabot tayo ng P12.10. sabi ko, we will just ask PSALM to sign a contract with Meralco at P6. So Meralco can only charge P6, walang patong iyong Meralco, pass-through iyan eh. If they do that, we will save the consumer in 1 month alone in April, P489 million. Yes. Malaki iyan. 500MW iyan eh. Sinasabi nila we will be short by 700MW, we found na 500MW na nakatiwangwang lang dun. And then in May, P406 million.

Sinabi ko sa House, nag-pre bicam kami eh. Sinabi ko sa kanila, here use this, huwag niyong gamitin iyang Malampaya. Okay lang kung gagamitin iyong Malampaya pero ang problema ko, kapag sinira mo ang automatic pass-through, marami na ngayong hihingi ng exemption every time we have a problem like this. Now, sabi nila, malaking bagay iyong 1 centavo, 'yung 4 centavos. Ang sabi ko, hindi kayo nagko-compute.

If the average, siguro iyong mga bill ninyo aabot ng mga P2,000 to P5,000 a month.. kung ang bill ninyo halimbawa ay 300 kilowatts a month, and at 300 kilowatts you are paying P10, let's say lang that you're paying this para sa lahat, if I add 4 centavos, you will pay an extra P12. You're paying P3,000 for 300 kilowatts, I will charge you an extra 4 centavos, that's only P12 a month. Hindi nila name-mention iyon. Ang sinasabi nila 1 percent of the national, 1 centavo in the national is 700 million. Ang sabi ko, sa national naman iyon, silipin mo iyong babayaran ng customer.

Now, bakit ayaw ko ng exemption ng pass through? Because this ILP is forever. Tuwing meron tayong emergency, gagamitin natin iyong ILP. We have been using this in Cebu and Davao for the last 5 years. Tinanong ko ang sarili ko, kung i-exempt namin ang mga taga-Luzon na first-timer lang nito, magko-complain naman iyong mga taga Davao at Cebu, sasabihin nila, 'Boss naman, bigyan mo ang Luzon, bakitn hindi mo kami i-refund dun sa last 5 years?' Naku, sakit sa ulo ito. Atsaka ang gusto ko din, many people will not like this, but kapag nagkaroon tayo ng shortage ng any commodity - gasoline, LPG, bigas, corn - tumataas ang presyo hindi ba? At nagtitipid naman ang tao. That's the pricing signal na sasabihin ng mga magulang ninyo na, 'Anak, patayin mo ang ilaw sa kuwarto.' Nagiging conscious sila. At gusto ko iyon ang mangyari. I was in the US, 14 years po akong na-exile dun, tinuturuan po kami dun sa Amerika, ganito ha, ganito ang gawin mo sa bahay mo, ganito ang thermostat, i-unplug mo ang lahat ng TV sets mo, unplug mo lahat iyan kasi kumakain lang iyan ng kuryente na hindi mo naman ginagamit. So, that's the reason why.

I think, and in fairness to the Senate committee, we offered them P498 million. Dun po sa ILP, ang uubusin lang po nila dun si about P167 million, that's the computation of Meralco because Meralco is the administrator of the ILP.

So bakit ako ang nagiging bad boy dito?

Q: May attempt na mag-usap kayo nila Cong Umali?

Serge: Meron akong kinakausap sa House but I will not mention names. Ine-explain ko sa kanila na, 'Wow, I am offering you P400 million and you're saying no because you want the P167 million?' Mali yata ang mathematics ko ah. '

Q: Bakit ini-insist nila ito? Papa-pogi points?

Serge: Hindi ko alam. Hindi ko alam. Kung bubuksan nila iyang Malampaya funds... alam niyo, may eskandalo po dyan sa Malampaya fund, hindi ba iyong P900M ni Ruby Tuason? Ni Napoles? But, I am not suspecting them of anything. What I am saying is that I don't know why they are insisting on that, sapagkat napaka-resonable iyong compromise ko. It's more than a compromise, it's double, it's more than double what the consumers will get. Kasi ako, tinitingnan ko sa CBK, which is owned by Napocor-PSALM, that they have not started this, run this to maximum since the beginning. Bakit tayo magpapatayo ng 750MW kung gagamitin mo lang naman 200MW? Overpriced pa hindi ba? Iyong sa IMPSA. God, if I were president of this company, I would have fired you long ago, you know.

Q: Yung extra na 500MW anytime pwede na gamitin?

Serge: 500. Yes. Ngayon pinapataas na ang tubig. By March 15, aabot na, it will reach the level of 288.5 meters and it will be able to deliver the maximum 720 MW for 6 hours during the peaking hours.

Q: Malabo ang compromise?

Serge: I don't know if they understand what I am talking about, or if they really don't want to understand.

Hindi naman natin kailangan na ipasa iyong joint resolution. Matagal ko ng hini-hint sa inyo. Kayo lang ang emergency-emergency power. Walang emergency powers dito because emergency powers is to give the president the power to buy a new plant, to lease a new plant. Nakasulat na sa Epira na hindi na papasok ang government diyan, hindi sila magkakaroon ng competition with the private sector. Or else, hindi na papasok dito ang private sector kasi alam na alam nila na very politicized ang rates ng government. Kapag government ang may-ari, magde-demonstrate na, ibaba ninyo ang presyo, matatakot na naman ang presidente, ipapababa. This is an example of it. And I don't want that to happen. Because malalaki itong mga investors na pumapasok dito, alam niyo naman na it's $2M or P90M per MW. Mag-build ka ng 1,000MW na gas plant, that P90B. susmarya!

Q: Hindi na kailangan ang Joint Reso?

Serge: It will help. Kung babasahin ninyo itong latest draft, you will see these are all management, binibigyan natin ng diin, hindi lang pansin kundi diin, itong director, itong secretary of DOE... The department of energy is hereby directed to... ang haba niyan. Alam niyo sino sumulat niyan? Ang secretary of energy. Pinapapasok ko lahat ng mga suggestions nila, explain lang sakin at kapag naintindihan ko, pasok lahat iyan. Lahat iyan - NGCP, DOE, ERC, PEMC, CBK-Napocor, Psalm. Wala akong complaint. You can ask any of them if I have any complaint kung may complaint ba sila sa version ni Sen. Osmena, sasabihin nila, hindi ho, kami ho ang kunsumisyon dito.

Q: Ok lang kahit walang maipasang Joint Reso? Wala bang pressure from Palace?

Serge: Do you see me worried? Iyon nga din ang pinagtataka ko. Sila Liberal, ako hindi ako Liberal. Ang Presidente humihingi nito. Alam niyo naman pinaghirapan natin ito, I have been working on this for 5 months, wala na akong ibang pinagka-abalahan. Ayan o, 2 box na iyan at meron pa akong 13 boxes diyan sa labas. Napag-aralan ko iyan. It's the Palace who asked for this. If this is wrong, if this cannot help, eh di don't pass it. Pero huwag natin sirain iyong protocol ng pass through. Kasi meron naman akong kapalit na ibinibigay sa inyo na mas malaki, ayaw niyo naman tanggapin, hindi ko maintindihan kung bakit.

Q: Magagamit pa iyon even without the resolution?

Serge: yes. They are implementing all of these.

The ILP has already been implemented in Cebu and Davao, it was already okay for Luzon, ngayon ina-update lang nila iyong rules. But yes, they are implementing it. As a matter of fact, nag test run na sila ng 2x eh, last week and 3 weeks ago, and very good daw ang results sabi ni Oscar Reyes ng Meralco.

Q: Iyong sa CBK, they only need an agreement...

Serge: CBK will need to operate or I'll take them to the anti-graft court. With or without the resolution. You don't need the resolution to run the CBK, it was a management problem. Pinuntahan ko lang ang NGCP, 'hoy, yung power dun, i-open mo. Itaas mo iyong tubig by half meter lang. They have been raising it since last week, by March 15, sabi nila sakin, 'Sir aabot na po kami sa 288.5, right on time on March 15.

Q: Iyong ILP plus 'yung CBK...

Serge: Ang malaki diyan iyong CBK talaga. Iyan talaga ang 6 hours a day, solid every day.

Q: Iyong Joint Reso...

Serge: Emphasis lang ito. Pwede ko na itong itapon ngayon.

Q: If they use ILP now, automatic na consumer ipapasa ito?

Serge: I am working on that now. Hindi natin naipasa ito, kakausapin ko iyong secretary of finance, puwede ba i-kontrata mo na iyong 500MW na nakita namin na inactive sa Caliraya. He can instruct, siya kasi ang chairman of the board ng PSALM. He can advise PSALM to sign a contract, instead of WESM, kasi kapag tinapon nila sa WESM, mahal, ang magiging presyo, projected ng computer ito. Kaya ang sabi ko, sign a contract at P6 with Meralco, because Meralco lang ang makaka-absorb niyan eh.

Q: Anong assurance na hindi sa WESM?

Serge: Yun na nga. If we pass this, we will have assurances that we will sign that contract at P6.

Q: For the sake of the consumers?

Serfe: Yeah, kaya nga. I have been thinking of the consumers pero ang pinapalabas nila I am not thinking of the consumers. No. I am thinking of the consumers. Kaya hindi ako pumayag na mag-lease tayo kasi aabot ng P35/kwh ang lease of diesel plants.

Q: Message or efforts from Malacanang?

Serge: Wala naman. Malacanang does not call me anymore. After I told them to say they're sorry, nagalit na sila sa akin.

Q: Hanggang next week na lang ang session. The possibility of a compromise?

Serge: If they accept the compromise offer of the Senate, and I don't know why they don't want to accept it...

Q: Ano ang takbo ng usapan niyo nung kausap niyo from the House?

Serge: Maybe. Maybe they will call for a private meeting and I can explain to them what it is. Alam niyo, hindi pa ako pinapasalamatan ng DOE, ng House. I just found 500MW for you. Susmarya! We don't even need that ILP. Baka hindi na natin gamitin iyang ILP. This comes ahead of the ILP, ito muna, this is the first one that will be produced. Because here, you will only be paying how much... between P6 and maximum of P13. Ang ILP is P15, at gagamitin mo maliliit na gensets. Dito tuloy tuloy 720MW dine-deliver nila.

Q: The 500MW from CBK and the ILP, wala ng power shortage?

Serge: Unless 2 giant plants breakdown. Iyan hindi ko mape-predict, these are what we call the unscheduled breakdowns....in a normal scale, we are safe.

Q: 1-2 hours?

Serge: Yes. But when I reviewed my computation, with this 500MW, if they operationalize that ha, kung walang magsa-sabotage diyan, we would have sufficient power.

Q: Ibabawal ang sabay-sabay na shutdown?

Serge: Kung scheduled. Iyong sasabihin mo sa NGCP na May 1-15 I will be down to clean and rehab the plants. Iyang mga iyan pinapa-postpone namin to July. That's 350MW. Kinausap namin na huwag humingi ng down time sa May, i-move na lang sa July. We need your 350MW.

Q: Adjourn na next week... deadlock?

Serge: I already gave them my position, paninindigan ko iyan, ayoko sirain ang pass-through provisions na automatic. Ayaw ko naman sagutin kung magkakaroon ng complaint from Cebu and Davao, 'boss paano naman ang samin?'...

Q: Hanggang next week na lang and after that wala na talagang bicam?

Serge: Yes...

Q: Ayaw niyo gamitin ang Malampaya kasi open to abuse?

Serge: It's not that I really don't want to use Malampaya. It's just that dinadaan nila na no pass-through. That's the protocol that we established already. Kaya hindi sumisipa iyong mga participants sa ILP sa Cebu at Davao kasi alam nila na automatic. Kapag pinaandar nila, sasabihin lang nila that they ran so much at ilalagay na sa bill. At maximum, tsina-charge dun is 4 centavos per kilowatt hour. Dun walang nagko-complaint, hindi mo mararamdaman iyong 4 centavos/kwh. Divided by everybody eh. Wag nating sirain iyan. Hirap na hirap tayong mag-establish ng ILP.

Q: Kung walang maipasang resolution next week, will you still push for the CBK?

Serge: I will push for it.

Q: Wala iyong reduced na power cost?

Serge: ito yung P489M, iyan ang savings. If they sign the contract at P6 instead of throwing it to the WESM, the WESM is projected to average for April, P13.41. If we use this, you'll get it at P6. So if you use up the entire 500MW, which will be used up by the way, that's 66 million KWH in one month, you will save P489M. You won't feel it kasi walang credit dun sa bill mo pero alam mo...

Q: Iyan ang alternative sa joint reso?

Serge: I am pushing for this with or without the joint resolution. If we have the joint resolution, automatic. But without, kakausapin ko pa iyong secretary ng department of finance, psalm, npc, sasabihin ko sa kanila, pagbigyan niyo na ang tao. I discovered this. Otherwise, you would not even be earning this money, at least makaka P6 pa.

2 or 3 months. In June, the WESM price is projected at 8.35 average. It's during the month of April and May na talagang puputok.

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