Albay is in danger of being plunged into darkness with the decision of a power supplier to cut off the province’s electric cooperative for non-payment of nearly P1 billion in bills.
The Philippine Electricity Market Corp. ordered the disconnection of Albay Electric Cooperative from the electricity spot market after the co-op reneged on its commitment to pay up on or before February 1.
The coporation said in a statement “it is constrained to issue a notice of suspension and request for the electric cooperative’s disconnection” following Aleco’s inability to settle its obligation as it agreed to do in the mediation agreement dated December 9, 2010.”
Aleco’s obligations to PEMC has reached P975.72 million.
Aleco entered into an agreement with PEMC and five other generation companies under which the cooperative pledged to pay its December 2010 bill and replenish its prudential requirement on or before January 25.
Aleco also agreed to pay its obligation from the August 2010 to November 2010 billing period on or before February 1.
Aleco, however, failed to comply with its commitment, aviolating the rules of the wholesale electricity spot market, which PEMC said. PEMC owns the wholesale spot market.
Aleco purchased 100 percent of Albay’s power requirements from the spot market for the period covering June 2009 up to April 2010, and up to December 2010 procured from the market at an average of 65 percent.
PEMC has also asked the National Grid Corporation of the Philippines for the disconnection of Aleco. National Grid officials have not disconnected Aleco due to some “procedural requirements” that have yet to be accomplished.
Aleco is also banned from the spot market until such time as the suspension notice is revoked.
No comments:
Post a Comment