Coops rile over PDDP sale

 

By Francis Allan L. Angelo

 

THE privatization of the National Power Corp.’s, (Napocor) Panay diesel-fired Power Plant (PDPP) in Dingle, Iloilo would be disastrous to electric cooperatives and their consumers if they fail to forge agreements with the new owner.

 

This was the contention of Engr. Wilfred Billena, Iloilo Electric Cooperative (Ileco-1), over cable TV talk show Serbisyo Publiko hosted by Iloilo City Councilor Perla Zulueta Sunday.

 

Billena said they get 66% of their 30 megawatt power requirement from PDPP which was sold to SPC Power Corp. for more than US$5 million.

 

Earlier reports said SPC might not operate PDPP after March 26 for two reasons – rehabilitation of the plant and uncertainty over the price of power it will produce.

 

Worse, the power supply agreements between Napocor and Panay electric cooperatives which are good until December 2010 were not included in the sale to SPC.

 

“This is disastrous because we don’t know where to get the electricity we will lose if that happens. The Northern Negros geothermal production field is not performing as expected,” Billena said.

 

Billena said if they negotiate a new power supply agreement with SPC, the price of electricity will surely increase because the new owner will have to offer the true cost of power from a diesel-fired power plant.

 

Atty. Dennis Ventilacion, Ileco-3 director, said they will sue Napocor if it fails to deliver electricity under their supply contract.

 

“Negotiating with SPC is one possibility but Napocor must fulfill their part to deliver power to the cooperatives because we have live contracts with them,” Ventilacion said over The Daily Guardian on Air Saturday program at Aksyon Radyo.

 

Ventilacion said the Power Sector Assets and Liabilities Management Corp. (PSALM) lacked foresight when it failed to include their contracts in the PDPP sale.

 

“We don’t care if PDPP was sold to SPC but we will demand the power we contracted with Napocor until 2010,” Ventilacion said.

 

Ventilacion, meanwhile, said their new power supply agreement with two renewable energy producers and two coal-fired power plants will be available January 2011. 

 

Even Panay Electric Co. (Peco), the sole power distributor in Iloilo City, will also be affected by the looming shutdown of PDPP.

 

Engr. Randy Pastolero, special assistant to Peco president Miguel Cacho, said they have a standing contract with Napocor to get 15MW from the Cebu-Negros-Panay grid. Presently, Peco only gets 8-9MW of the contracted electricity.

 

“Hopefully, Panay Power Corp.’s plants will not experience problems because if they do, we will suffer from brownouts because we don’t have reserve power which we ought to get from Napocor,” Pastolero said.

 

Presidential adviser for Western Visayas Raul Banias said the problems of the cooperatives and Napocor will be discussed during the March 13 power summit in Iloilo City.

 

Banias said among the proposals to address the problem is to rehabilitate Peco’ diesel-fired power plant and draw electricity from private generators.

 

“But it would take four months to rehabilitate Peco’s power plant and we have to inventory the amount of electricity we can get from private establishments,” Banias said.