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Monday May 12, 1:23 PM Philippines' Gsis Can Buy Meralco, Says Oscar Lopez $all $ph $enr $utl MANILA, May 12 Asia Pulse - "If he wants, he can buy us out." Thus said Oscar M. Lopez, president of First Philippine Holdings Corp., (FPHC) on Thursday as the squabble between Manila Electric Company (Meralco) and Winston Garcia, president of the Government Service Insurance System (GSIS) continued to heat up following the alleged plans of the government to take over the country's largest distribution utility firms. According to Lopez, the reported takeover plan of GSIS on Meralco is a reversal of what the government is doing with state-run National Power Corporation (Napocor). He said the government is keen on privatizing Napocor assets to improve its service and bring down power rates and yet they are poised to enter and control Meralco. Asked if he is willing to sell the Lopez share to GSIS, the FPHC chief said either to him or foreign investors. Lopez said Meralco should not be blamed for the high power rates since they are sourcing their supply from Napocor, Wholesale Electricity Spot Market (WESM) and the Independent Power Producers (IPPs). "It's not Meralcos responsibility to lower the rates, our rates are lower," Lopez told reporters at the sidelines of the Philippines-Europe Business Conference sponsored by European Chamber of Commerce of the Philippines (ECCP) and the European Union held at the New World Rennaisance Hotel in Makati. Moreover, Lopez said its governments responsibility to bring rates down and not Meralco, adding that one way to do this is to first take away the royalties on natural gas. On the reported plans of Congress and Senate to investigate Meralcos rates, Lopez responded they can do anything they want. Lopez also said that he is personally sick and tired of this business especially when power rates go up and they are blamed for it. The rift between Garcia and the Lopez clan, which controls 33.4 per cent of Meralco, started when the GSIS chief asked copies of the financial statement and commercial transactions made by Meralco. Garcia was also reported to have been soliciting proxy votes for the incoming stockholders meeting of the company to remove Lopez from the board and for the government to control the firm. In an earlier interview, Lopez said despite the alleged plans of Garcia to control Meralco, they have no plans to increase their stake in the distribution utility firm. He also denied having knowledge of the real motives of Garcia, saying "I don't know about the ultimate plan of Mr. Garcia, whether he is doing this in order to get a better price for his share because that is his main business, to go in the company and try to shake it, to get a good price." GSIS was able to secure a seat in the board after acquiring governments 10 per cent stake. Aside from GSIS, other government-owned and controlled corporations have shares with Meralco, bringing the entire government's share to 33 per cent. Meanwhile, European investors said they welcome government's effort to bring down power rates in the Philippines. Hubert d' Aboville, president of ECCP, explained that high power rates is one factor that investors in Europe are considering in infusing investment in the country. "From the industry point of view, it's a good thing that the government recognizes the need to bring power rates down," he said during a press briefing. He also lauded the decision of the Energy Regulatory Commission (ERC) and the Philippine Economic Zone Authority (PEZA) to reduce the cost of power in the ecozones. However, he pointed out that "there should be less government involvement but more private sector involvement" if the government really wants investors to come in. (PNA)