BY JOB REALUBIT

OSCAR Lopez, president of First Philippine Holdings Corp., yesterday said if GSIS president and general manager Winston Garcia is willing to buy out his family's share in the Manila Electric Co. (Meralco), he would "be more than willing" to sell it.

First Philippine Holdings, one of the holding companies of the Lopez family, has a 33.4 percent stake in Meralco. GSIS owns 33 percent. The rest of the shares are owned by public investors.

"If he (Garcia) wants, he can buy us out," Lopez said at the sidelines of the RP-European Union Business Conference.

Garcia, in a television interview, said GSIS is willing to sit down with the Lopez group to know the extent and terms of the offer.

Garcia has been vocal about Meralco's lack of transparency in determining its power rates. He has asked for the opening of the firm's financial records.

Lopez said, "I am sick and tired of this business. We even can't get a rate increase because the government is saying our rate is too high."

The last time Meralco raised its basic distribution charge was in June 2003.

Last April 2, it filed a new petition before the Energy Regulatory Commission for a P0.1938 per kilowatt-hour rate increase for the period covering July 1, 2008 to June 30, 2009. The ERC has yet to act on the petition.

Lopez said the plan of GSIS to take over Meralco is the opposite of what the government is doing with the National Power Corp (Napocor).

He said the government is privatizing Napocor's assets to improve its service and to bring down power rates, which is a contradiction to what it is doing with Meralco.

Lopez said it is the government's responsibility to bring down power rates, and not Meralco's.

He said the government has to cut the value added tax on electricity and remove the royalties on natural gas.

Press Secretary Ignacio Bunye said Meralco should stop suggesting the government is charging exorbitant fees through taxes and royalties, stressing that removing or reducing these rates may not be the solution to the power rate problem.

He said the government's call to open Meralco's books should not be interpreted as a means to eventually take over.

Justice Secretary Raul Gonzalez said the proposed takeover by GSIS should not be attributed to government.

"The government does not take over unless there's an emergency. Under the corporation law, whoever controls the stocks controls the corporation," he said.

POLITICAL MOVE

Caloocan Bishop Deogracias Iñiguez said the issue about Meralco's power rates is not devoid of political motives.

"I personally think that it is a political move (by the government)," Iñiguez, head of the Catholic Bishops Conference of the Philippines (CBCP) Public Affairs Committee, said in a forum.

Iñiguez advised the public to look closely at the developments, noting that Meralco is one of the foremost companies that serve a large part of the population.

Lingayen-Dagupan Archbishop Oscar Cruz said it is possible that President Arroyo is using the Meralco issue to deodorize her continuous plunge in the public satisfaction ratings.

"Bakit ngayon lang nire-raise ang issue e pitong taon na siya diyan sa puwesto? Lumalabas na nagka-cram siya sa natitira niyang two years," said Cruz, former CBCP president.

GO EASY, GOV'T TOLD

Senate President Manuel Villar called on government to go easy on Meralco.

Villar said the Lopez-controlled power distributor is well capable of defending its pricing before the public and Congress.

"Ako ay naniniwala na maipapaliwanag ito ng Meralco kung tunay nga na walang mali sa kanilang pagtataas."

The Joint Congressional Power Commission (Powercom), chaired by Sen. Miriam Defensor-Santiago and Pampanga Rep. Juan Miguel "Mikey" Arroyo, will start hearings Monday on Meralco's high power rates as a possible result of violations of antitrust laws.

Santiago, chair of the Senate committee on energy, said the Powercom would look particularly into Meralco's power purchases from Lopez-owned independent power producers (IPPs).

Arroyo said his energy committee held its own hearing Tuesday on Meralco's exorbitant rates.

HELL-BENT

Sen. Rodolfo Biazon said the government, with its vast power and resources, is apparently hell-bent on controlling Meralco.

"If government succeeds to effect government control and management of the company we will witness a parade of incompetent political appointees who will be coming one after another depending on the direction of the political winds," he said.

He said that if this happens, "then there is danger that this utility company could go under." - With Jocelyn Montemayor, Gerard Naval, Dennis Gadil and JP Lopez