Malapascua power provider out, CEBECO II to take over

CEBU, Philippines — The Cebu Electric Cooperative (CEBECO II) is set to take over the supply of electricity in Malapascua Island in Daanbantayan after terminating a waiver it earlier granted to PowerSource Philippines Inc. (PSPI).

In a meeting at the Capitol on Wednesday, July 3, CEBECO II General Manager Lowell Belciña told Cebu Governor Gwendolyn Garcia that they have agreed to terminate the waiver they signed with PSPI in 2009 because of the latter’s failure to provide enough power supply to Malapascua Island. The takeover will commence after a 90-day transition period.

Atty. Donato Villa, provincial legal officer, said the termination of the waiver will also result in the automatic termination of the contract entered into by PSPI with the National Power Corporation (NAPOCOR).

CEBECO II was prompted to end the waiver it signed in favor of PSPI due to the alleged inability of PSPI to power the island. According to the reports, one of PSPI power generators conked out resulting in power supply shortage that has affected the residents and caused inconvenience to the operation of the businesses in the island.

The complaints from the residents and business owners in the area also prompted the provincial government to intervene. The Capitol rented four generator sets each with 500 KVA capacity to address the power crisis in the island which has a peak power demand of two megawatts.

In February 2007, CEBECO II declared Malapascua Island as a remote and unviable area and consequently opened for the provision of electricity service by a qualified third party (QTP), and then waived its right to provide service in the said QTP area.

In July 2009, CEBECO II and PSPI executed a waiver agreement where CEBECO waived in favor of PSPI the right to provide electricity service in Malapascua, one of the tourist destinations in the province. –FPL (FREEMAN)