By Francis Allan L. Angelo

 

THE turnover of Panay Diesel-fired Power Plant (PDPP) in Dingle, Iloilo to SPC Power Corp. will go on as scheduled.

 

Presidential adviser for Western Visayas Raul Banias said the national government will not delay the March 26 turnover of the plant to SPC despite apprehensions that it will worsen the power crisis in Panay Island.

 

Banias said delaying the PDPP turnover is one of the proposals they presented to President Gloria Arroyo and the Department of Energy (DOE) to prevent the power shortage from deteriorating.

 

But Banias said Energy Secretary Angelo Reyes rejected the proposed solution as the sale was already consummated.

 

Reyes also disapproved the transfer of Power Barge 104 in Davao City as it is scheduled for maintenance and repair.

 

“Secretary Reyes instead pushed for power augmentation program which they expect to arrest the looming shortage,” Banias said.

 

The DOE will mount an energy summit with the National Power Corp. (Napocor), SPC and other power sector stakeholders in the island to discuss and solve the energy crisis.

 

SPC Power Corp. (SPC), formerly Salcon Power Corp., won the bidding for the 146.5-megawatt (MW) Panay and 22-MW Bohol diesel power plants.

 

The Power Sector Assets and Liabilities Management Corp. (PSALM), which oversees the sale of government’s power assets, said SPC outbid two other firms after submitting the highest offer of $5.86 million for the two plants.

 

Atty. Conrad Tolentino, PSALM spokesman, allayed fears that SPC will not operate PDPP after March 26.

 

Tolentino said while there is no assurance from SPC, it is more logical for the firm to operate the plant so it can recoup its investments.

 

“SPC will lose more if it does not run PDPP,” Tolentino said over Bombo Radyo-Iloilo.

 

Tolentino also said that SPC must first seek the approval of the Energy Regulatory Commission before it can jack up prices of electricity. 

 

Energy industry sources said SPC is hesitant to operate PDPP because of the price of electricity.

 

SPC will only run the plant if electric cooperatives agree to pay for the real cost of power which is more expensive than Napocor’s subsidized rates.