As 61,000 power consumers in Catanduanes and two other provinces will soon find out, the law of unintended consequences is poised to deliver yet another example of how government actions have unanticipated results.
As all citizens enraged by the trillion-peso flood control controversy know by now, Malacañang, through the Anti-Money Laundering Council (AMLC), has caused the issuance of freeze orders on assets of those involved in the scam from legislators to DPWH officials and contractors.
In late November, the AMLC secured two freeze orders that covered P4 billion in air assets belonging to former Ako Bicol Partylist Rep. Elizaldy Co as well as 3,566 bank accounts, 198 insurance policies, 247 motor vehicles, 178 real properties, and 16 e-wallet accounts.
With its accounts frozen and offices closed following the revocation of its licenses, the Sunwest group of companies has allegedly laid off over 5,000 employees in the Bicol mainland, including those of its construction company, a luxury island resort and flying school.
Unfortunately, the Sunwest group includes Sunwest Water & Electricity Co. (SUWECO), the company that accounts for 93 percent of the island’s total generator capacity, courtesy of its two hydroelectric power plants and 23 diesel generators.
Co, the former House appropriations chairman, is the majority owners of SUWECO along with his wife and signed the three Power Supply Agreements the company executed with the First Catanduanes Electric Cooperative, Inc. (FICELCO) from 2010 to 2012.
Even now, with one hydro plant and four gensets under maintenance, the company supplied 89 percent of the 15.55 megawatts needed by Catanduanes on a daily basis, including a system reserve of 3.5 mW.
As the freeze order now includes SUWECO bank accounts, the company’s officials can no longer withdraw from said accounts for use in paying off its fuel supplier, its workers and other necessary expenditures.
Since FICELCO’s monthly energy payments go directly to the bank account, SUWECO could soon run out of cash to pay its supplier, Unioil, for the diesel fuel requirement of its gensets that amounts to at least P3 million per day.
It will be forced to shut down its 23 diesel generators and even its two hydro power plants, since it would no longer be able to pay for the salaries of its operators and technicians.
The result would be massive, day-long brownouts, as the National Power Corporation can only supply 1.7 megawatts or barely 11 percent of the island’s daily electricity needs.
It is lamentable that not one of our top officials, from the two congressmen to the governor and the Sangguniang Panlalawigan, was able to anticipate the unintended consequence of the flood control freeze orders.
Azanza and the provincial board members could probably be excused, consumed as they are by their shameful actions in and out of office over the Quick Reaction Fund controversy.
But the two House representatives could have warned President Ferdinand Marcos Jr. of the potentially disastrous effect of the freeze order on the power supply situation.
Both solons could have asked AMLC to exclude SUWECO’s assets from coverage of the freeze order, considering that it would affect not only Catanduanes but two other provinces – Antique and Romblon – where the company supplies electricity.
Perhaps it is not too late for them to initiate moves to rectify the situation, while the National Electrification Administration is acting quickly to possibly provide alternative power sources.
In the wake of the devastation wrought by the recent super typhoon, subjecting the suffering majority to a dark and muted Christmas celebration would be too much to bear.