Albay faces powerless days

MANILA, Philippines - The province of Albay is facing powerless days if its electric cooperative and government-run Philippine Electricity Market Corp. (PEMC) will not resolve their issues.

Energy Secretary Jose Rene Almendras, who sees the great impact of the dispute to Albay residents, had decided to step in.

Almendras had directed the National Electrification Administration (NEA) to mediate between Albay Electric Cooperative Inc. and the PEMC, operator of the wholesale electricity spot market (WESM).

It would be noted that Almendras, aware of the impending problem of ECs amid the restructuring of the power sector, had also ordered NEA to prepare these small distribution utilities to open access and retail competition.

True to its foresight, Almendras is already seeing some problems with regard to Luzon-based ECs trading in the WESM. “NEA is interacting with Aleco and discussions are ongoing. I have given directions to NEA,” he said.

Mindful of the sensitivity of the problem, Almendras refused to elaborate on the issue “as negotiations may be affected.”

But the energy chief noted that “there is an existing Energy Regulatory Commission order” regarding the dispute between Aleco and PEMC.

He, however, said the problem, if not resolved, may lead to power disconnection of Aleco in the power grid.

“We cannot disconnect as of yet but I believe we eventually will be able to do so,” he said.

It would be recalled that last month, the ERC ruled that the parties observe the “status quo” and PEMC is enjoined from directing system operator National Grid Corp. of the Philippines (NGCP) to cut off Aleco from the electric supply grid.

“Any move by NGCP to disconnect Aleco from the supply grid, upon the request of PEMC, would jeopardize the present dispute resolution processes being undertaken by the parties. More importantly, such is premature as there is no final determination as to Aleco’s liability to PEMC,” the ERC, in its order, said.

Aleco filed a case against National Power Corp. and PEMC in May this year due to the exorbitant and steep increase in the billings of PEMC as well as latter’s refusal to grant Aleco’s requests for the consideration of the questioned billings.

The complaint stemmed from PEMC’s billing to Aleco covering the period from Jan. 26 to Feb. 25 charging Aleco of P317 million, an increase of almost 300 percent from its previous billings.