Wake Up, Philippines!

Public to pay for BNPP revival—solons

Posted in DOE, Energy, Social Issues/Concerns by Erineus on February 11, 2009

MANILA, Philippines – The public will partly shoulder the cost of reviving the mothballed Bataan Nuclear Power Plant (BNPP) that is being pushed at the House of Representatives as an alternative and cheaper source of energy for the country.

House Bill 4631 or the “Bataan Nuclear Power Plant Commissioning Act of 2008″, authored by Representative Mark Cojuangco, intends to raise as much as $1 billion, to be sourced from the 10-centavo per kilowatt hour surcharge of the total electric power generated and which would be collected from consumers and international or domestic loans.

On Tuesday’s hearing at the House of Representatives, members of the committee on appropriation engaged anew in debates on the funding for the plant’s rehabilitation, decommissioning, and commercial operation.

Albay Representative Edcel Lagman questioned why funds should be sourced from the General Appropriations Act, or the annual budget, to be able to operate the plant again.

Cojuangco agreed to delete that contentious portion, but maintained that Section 22 of the bill, which provides the 10 centavos surcharge and the loans, should stay.

“Section 22 is still unacceptable because of the surcharge and the international and domestic loan agreements. The surcharge will be levied to consumers even before the plant starts running. … We heard from the Department of Finance that the government is still financing for the principal and interest of the BNPP . . . it’s not even fully paid for. . . . So it would be like throwing good money after bad,” Akbayan partylist Representative Risa Hontiveros told the committee.

Bayan Muna Representative Teodoro Casiño said removing the section of the source of the funding would be “deceptive and misleading” since it would still be the government that would impose the 10-centavo surcharge.

And when government borrows, Casiño said that payments would be made through automatic appropriations, which would, in effect, mean getting the money from the annual budget.

Cojuangco countered that having the plant as a source of energy would save the public P2 per kilowatt hour. And shelling out a measly 10 centavos per kilowatt hour would make the consumers owners of the plant.

With the P2 per kilowatt hour savings, the consumers will save at least P9 billion annually, Cojuangco added.

The committee will hold another hearing to vote on the “appropriation language” of the bill, but Hontiveros vowed to block it, saying the revival of the plant will need further study.

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