Malacañang To Forgo Money From Malampaya - Yeah Right!

We have probably one of the highest power rates in the world. And the service that we get for the amount that we pay is not really commensurate with the costs.

Meralco has again increased power rates amid rolling brown outs. They cite increase fuel costs as well as maintenance and repair costs as well.

Deputy Presidential Spokesman Gary Olivar has defended the increase saying that "power shortage is usually accompanied by higher prices due to unplanned capital expenses when power plants break down."

That may be but in any business especially power generation shouldn't they have plans for such scenarios and the funding to take care of it without ramming the costs down our throats.

It's bad enough that now they transfer all the risks of electricity being stolen to the consumers but they also transfer their loss as well.

Olivar further added that "The power sector has to hold more repair and maintenance services of their power plants to accommodate high power demand during the summer months, he said. This meant additional expenses for power generating and distributing companies and more charges on electricity consumers. That’s the law of supply and demand."

Yes sir that may be the law of supply and demand but that is also the law of unpreparedness and Mr. Olivar sir, these companies are not prepared.

All of a sudden Malacañang is open to the suggestion of Senate President Juan Ponce Enrile to forego royalty taxes from indigenous energy sources, such as the Malampaya natural gas plant, to ease the burden of power consumers.

Wait! How come when Enrile proposed it it is taken as constructive but when activists and pro-people suggest it it is nothing more than un-supported ideals and is discarded?

When the people blame and call for the removal of royalties and the EVAT Malacañang balks but when it's known politicians it's acceptable.

Because if I remember before such a proposal was made but I believe was rebuffed as nonesense by Malacañang.

Ah politics indeed. Will something come out of this so called constructive proposal. I doubt it.

After all the government relies on Malampaya royalties and the EVAT to boost government revenues need to reduce its bloating budget deficit. I think the government gets over P9 billion from the Malampaya natural gas project on average.

That's a lot of money that they will lose (from their pockets) should they follow Enrile's recommendation and use the money to boost power distribution and maintenance instead.

There will be a lot of empty political pockets should that occur. And in our government loss of revenue (for their pockets) is a no no.

Why do you think we have a bloated budget deficit?