Power firm says fuel stock only until Dec. 15
Saturday, December 10, 2005
By Kathy Villalon Cinco
A RENEWED threat of a blackout hounds the Ilonggos after the Panay Power Corporation (PPC), which is owned by Mirant Global Corporation, said their fuel stock will last only until December 15.
Adrian Moncada, vice president of Mirant Global Philippines, revealed this Thursday. "Contrary to what others said, we are not blackmailing the Ilonggos. Much as we like to continue, our fuel stock will not allow us to do so. We have to shut down by December 15," he said.
With the shut down, the PPC can no longer supply power to the Panay Electric Company (Peco), the sole power distributor in Iloilo City.
Moncada said since November 30, they have been meeting with local officials to encourage them to get involved with the problem.
One of those who responded was Representative Raul Gonzalez Jr., who is set to meet with representatives Mirant Global Philippines Friday.
Gonzalez revealed that he wrote to President Gloria Macapagal-Arroyo to intervene on the looming power crisis in Iloilo. He too expressed concern on the severity of the situation.
"It's not good if this (shut down) will happen. If power generation in Iloilo City stops, our economy will also be affected. Our businessmen will suffer losses," he said.
Gonzalez also stated Article 12 Section 17 of the Constitution where it provides that in cases of emergency, the National Government can take over private enterprises.
"Iloilo City is the engine of growth of Western Visayas. The latter is a big contributor in the national economy. We might be in for a big disappointment next year if the region is affected," he said. "So, this situation is already on the hands of the Executive Department. It's up to them to find a way so that the PPC plant will not be shut down," he added.
As regards the "take over" issue, Moncada replied, "Perhaps due process has to be observed." As regards the P360 million debt that Peco has incurred, Moncada said their legal office is handling this.
"But, at the end of the day, the truth remains that every day, our fuel lessens. Even our deliveries were blocked because of the P360 million debt that Peco has incurred in its power purchases from us," he said.
Moncada revealed that Peco's debt increases by more than P100 million a month. He apologized to the public adding, "But we have to tell you this because we don't want you to blame us in the end."
It was suggested that the National Power Corporation (Napocor) should provide power for Peco instead. However, Engr. Nelson Homina, plant manager of Napocor said that they could not meet the 78 megawatts that Peco needs.
"Even the president of Transco said they could not deliver the power needed by Iloilo because their facilities are not enough for them to do so," Moncada said. Moncada revealed that throughout Panay, a rotating brownout has been occurring for quite sometime now, an indicator that Napocor does not have enough power to supply Panay.
He explained that the power of Panay interconnects with several islands starting from Leyte. "From Leyte, there's a geothermal line that brings electricity to Cebu. Through a submarine cable, it passes towards Negros, then to Panay. We are at the end of the transmission line, so whatever is left from the uses of these islands, goes to us."
Moncada added that although Transco upgraded their submarine cable from Leyte to Cebu, causing their capacity to increase, it won't be for long because the additional cables are meant to replace their plants in Cebu. Moncada cited the Cebu experience wherein a private power corporation there expressed that they could no longer afford to supply power because they are incurring losses. "With the intervention of the local officials, they were given provisional authority."
This is the same provisional authority that Peco is asking from the Energy Regulatory Commission (ERC) during the public hearing held in Iloilo City last December 6.
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posted by philpower @ 10:22 AM,
