‘Water is not like oil. There is no substitute. If we continue to take it for granted, much of the earth is going to run short of water or food—or both.” This insight comes from a recent study made by the International Food Policy Research Institute and the International Water Management Institute entitled “Global Water Outlook to 2025: Averting an Impending Crisis.”

The report created three scenarios based on sophisticated computer modeling. The “business as usual” scenario sees substantial increases in global water consumption, resulting in lower levels of food production because competition from growing cities and industries worldwide would limit the amount of water available for irrigation. The environment would also sustain significant damage as water is diverted to agriculture, households and industry.

The “water crisis” scenario reveals even more dramatic increases in water consumption. Poor planning and lower levels of investment would significantly increase malnutrition and food insecurity, causing declines in food production and skyrocketing food prices.

The “sustainable water” scenario, on the other hand, shows global water consumption at 20 percent lower than “business as usual” levels, allowing for overall increases in food production and lower levels of food insecurity and malnutrition worldwide. This entails increased investment in improving water productivity, rural infrastructure and technological changes, as well as pricing water to reflect its cost and value.

The report concludes with these words: “A crisis is not inevitable. The world can achieve sustainable water use, but we must act now. The required strategies take not only money and political will, but time as well.”

This observation is particularly relevant today, when the urgent need is to promote efficient, equitable and sustainable use of water resources.

Secretary Lito Atienza of the Department of Environment and Natural Resources (DENR) is, therefore, on the right track when he recently invited foreign investors to invest in the country’s water sector. Among the viable areas for investment, he said, are desalination and wastewater treatment, water-supply projects, especially outside Metro Manila, and water-related projects such as sewerage and waste management.

It is good to know the DENR has already embarked on programs to make every drop of water count. Among these are water-supply projects for Metro Manila—where only 82.2 percent of the population is connected through piped water, with the remainder still getting  water supply from private water deliveries or groundwater extraction through pumps—and for 432 priority municipalities; use of innovative water technologies like recycling, desalination and rainwater harvesting; promotion of water conservation; and strict enforcement of water-pollution laws.

Atienza points out that water scarcity is not our main problem, because we have an abundant water supply from rainfall, of which only 28 percent is used. The challenge, he says, is “bringing this excess water to where it is needed, when it is needed.”

Squeezing blood from stone

On June 11 the Energy Regulatory Commission (ERC) issued a provisional order to the National Power Corp. (Napocor) to reduce rates in Luzon by 71.16 centavos/kWh and in Mindanao by 2.46 centavos/kWh. Visayas, however, will have an increase in rates by 8.78 centavos/kWh. The adjustments were supposed to be effective starting the May 26 to June 25, 2008, billing period. The ERC order, according to ERC Chairman Rodolfo Albano, was intended “to further help moderate the plight of end-consumers who are already burdened with high prices of basic commodities.”

For consumers like you and me, this is welcome news, as this would give us some relief from high power rates. But what’s this we hear that the P10-billion refund due consumers should have been made two years ago? Is it true that Napocor intentionally delayed for 21 months the filing of the P0.71/kWh refund to customers in Luzon? With the peso steadily gaining against the dollar in the last three years, power rates should have been correspondingly reduced. But even with the peso appreciation, consumers have not benefited, since we have to bear electricity rates based on the high peso-dollar exchange rates.

What the ERC order means is that Napocor overcharged consumers to the tune of P10 billion between July 2006 and March 2008. But the refund would only be for six months. And that’s not the end of it. At the end of six months, electricity rates would increase again because Napocor has a pending application for an increase in the generation charge that could reach P4.75/kWh.

This is a classic instance of what the left hand gives, the right hand takes away; something that the state-run power generation enterprise seems to have perfected to state-of-the-art over the years. Napocor is clearly part of the problem of high power rates in this country, and not part of the solution, as it claims. Can we expect lower electricity- generation charges by Napocor in the near future? Not by a long shot, given its lackluster track record in protecting the public interest. 

E-mail: ernhil@yahoo.com.

Editorial: A chair, a sweater—for the world?

THE situation of Cebu’s furniture industry, which has thrived for decades as a class unto itself in the global market, is one worth reviewing by those who make economic policy at the national and local government levels, and those who want to stay in business in these challenging times.

Outside the Box: The coming commodity-price collapse

The indirect consequence of the oil-price rise and the dollar-value drop is the largest increase in commodity prices since 1973. Commodities finished their best first-half year in 35 years. And what is unique about 1973?

About Town: Making every drop count

‘Water is not like oil. There is no substitute. If we continue to take it for granted, much of the earth is going to run short of water or food—or both.” This insight comes from a recent study made by the International Food Policy Research Institute and the International Water Management Institute entitled “Global Water Outlook to 2025: Averting an Impending Crisis.”

Tax Law for Business: More teeth in the administration of justice

Republic Act 9503, or “An Act enlarging the organizational structure of the Court of Tax Appeals, amending for the purpose certain sections of the law creating the Court of Tax Appeals and for other purposes,” was signed into law by the President on June 11.

Alálaong bagá: Learning from the meek and humble

He came riding a donkey, distinguished and victorious; he came to proclaim peace, offering a universal hope to the nations (Zechariah 9:9-10). He called those who are weary and burdened in life, and promised them solace and rest (Matthew11:25-30).

Inter Press Service: George W. Bush deserves Nobel Peace Prize

ROME—With Barack Obama likely to win the White House this November, George W. Bush has become more of a lame duck than other US presidents at the end of their terms. The unusually high turnout in the primary elections demonstrated the desire of the American populace to free itself from an administration that is already considered the worst in American history.

Reflections from the Mirror: Assassination threat ignored?

The announced claim of former Vice President Teofisto Guingona Jr. that he was approached by someone who offered to kill the President is not only a queer incident, but also indicates that former VP Guingona must have considered the threat against the President as frivolous. Either that or the former Veep is irresponsible.