BY WENDELL VIGILIA

REP. Amado Bagatsing (Kampi, Manila), an ally of Rep. Pablo Garcia (Kampi, Cebu) has filed a bill that would prohibit Manila Electric Co (Meralco) from passing its systems losses to consumers, saying the charge is "anti-poor."

GSIS president and general manager Winston Garcia, who has been engaging the Lopez family in a word war over the ownership of the country’s largest power distributor, is a son of Rep. Garcia.

He has been vocal about Meralco’s lack of transparency in determining its rates and has been demanding that it open its financial records.

Bagatsing filed House Bill 4073 repealing R.A. 7832 or the Anti-Electricity and Electric Transmission Lines-Materials Pilferage Act of 1994 which allows distribution utilities to charge systems losses.

Systems loss refers to electricity lost to pilferage and to conversion to heat as it passes electric wires.

"We now feel that distribution utilities like Meralco should not pass on to consumers their systems losses. They have been unjust and unreasonable in continuously passing on their losses to the consumers while they remain remiss in putting up controls to plug pilferage."

Meralco has said it has already lowered its systems loss to single digit from a high of over 20 percent.

Meralco has announced that it would increase its electricity charges following a hike in the systems loss charge and systems loss by 7.70 centavos per kilowatt-hour (kWh) and P3.52 per kWh respectively.

It said generation charges were expected to rise by 51.88 centavos per kWh and transmission cost by 7.59 centavos per kWh.

Senate President Manuel Villar and Loren Legarda warned against a government takeover of Meralco.

"The government should not handle a private corporation. There is yet to be precedent where the government ended up successful in supervising the operations of a company of the same nature (as Meralco)," Villar said.

Oscar Lopez, president of First Philippine Holdings Corp., on Thursday said if Winston Garcia is willing to buy out his family’s share in Meralco, he would "be more than willing" to sell it.

Garcia replied that he is ready to sit down with the Lopez group to discuss terms.

First Philippine Holdings, one of the holding companies of the Lopez family, has a 33.4 percent stake in Meralco.

The government, through the GSIS, owns a 33 percent share in the power distribution firm and holds four seats in the 11-member board.

Villar said Lopez’ statement "could be just out of exasperation to the continuing pressure on them. It’s a no-win situation when you’re up against the government," he said.

Legarda said that business matters are best left to the private sector.

Sen. Rodolfo Biazon reiterated his concern over political appointees occupying managerial positions crucial in the operations of companies such as the Meralco.

SENATE-PALACE COLLISION PART 2

Villar warned of another collision between the Senate and Malacañang if President Arroyo prevents energy officials from attending Monday’s hearing on the high cost of electricity to be conducted by the joint congressional Power Commission (Powercom).

The chairpersons of Powercom are Sen. Miriam Defensor Santiago and Rep. Juan Miguel "Mikey" Arroyo.

Santiago has said the joint panel would not tackle the buy-out of the Lopezes from Meralco.

Villar said the public would again suspect that the government is hiding something if officials are not allowed by the President to attend congressional inquiries.

Invited as resource persons are Winston Garcia, Energy Secretary Angelo Reyes, Napocor president Cyril del Callar, Energy Regulatory Commission chair Rodolfo Albano Jr., Meralco president Jesus Francisco, and representatives from electric cooperatives, party-list groups and cause-oriented organizations. – With JP Lopez