LEGAZPI CITY—The province of Albay is bewailing that while it has an indigenous clean source of geothermal power that benefits other regions, the province is pathetically enduring the high cost of the very energy it produces.
Gov. Joey Sarte Salceda said the Tiwi geothermal power plant which produces 330 megawatts, is directly distributing its power to the Luzon grid, a portion of which is returned to Albay, but sold at a much higher cost. “This is very unfair considering that the Tiwi geothermal power plant acquired by the Aboitiz Power Corp. announced it is currently supplying clean energy to the San Fernando Electric Power Corp. in Pampanga at the cheaper electric rate coming from Albay,” Salceda said.
A kilowatt-hour of geothermal power costs 56 centavos when leaving Albay. The Albay Electric Cooperative said a kilowatt hour of power cost P7.73 in September. This has gone up to P8.76 per kWh as of Oct. 10.
Bicolanos had long been clamoring for a special lower power rate for having its own source of the indigenous power since 1976. It is estimated that the entire Bicol region only needs 30 MW of power. However, the Marcos regime demanded that all natural sources of power such that of Tiwi be enjoyed equally by all sectors of society.
Salceda said Albay is enduring spikes in power rates being imposed by the Philippine Electricity Market Corp.(PEMC). He added that the use of the Tiwi geothermal power plant has also affected the province’s tourism interest, saying the geothermal operation had killed the famous Tiwi Hot Spring that used to attract tourists.
The Albay governor also decried that the Tiwi geothermal reserves have been dramatically depleted, thus jeopardizing a natural source of power for future generations of Albayanos.
The Albay Electric Cooperative (Aleco) owes P982 million in outstanding power bills with PEMC, which recently threatened the province of power disconnection. To stop the impending disconnection threat, Salceda had to beg President Aquino, however, with payment to be sourced from a proposed rate increase of P1.66 per kilowatt-hour.
Salceda’s proposal, however, was strongly opposed by the Catholic Church, the Albay Consumers’ Watch and the six Albay congressmen, including the three nominees from the Ako-Bicol party list, headed by Rep. Christopher Co.
The Albay congressmen contended that gross mismanagement and corruption within Aleco are the very causes of the power cooperative’s bankruptcy and failure to settle its obligation.
In defending his proposed power-rate increase, Salceda said that even if Aleco is stripped of inefficiencies, power costs are still far higher at the Wholesale Electricity Spot market, which is operated by the PEMC. He said an increase in power rate to prevent future disconnection threat is the only solution.
Aleco has a standing debt of P2.2 billion from the Power Sector Assets and Liabilities Management Corp, PEMC and the national electricity administration, according to the Albay Consumers’ Watch.
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