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WEDNESDAY, 09 FEBRUARY 2011 19:43 PAUL ANTHONY A. ISLA / REPORTER
THE Philippine Electricity Market Corp. (Pemc) said it was forced to disconnect Albay Electric Cooperative (Aleco) from the Wholesale Electricity Spot Market (Wesm) for the Bicol-based power distributor’s inability to pay its obligations.
“Aleco failed to settle its continuing obligation as it agreed to do in the mediation agreement it entered into with PEMC and WESM on Dec. 9 last year,” said the PEMC.
The PEMC said Aleco entered into a mediation agreement with them and five other power-generation companies which provided that it will pay its December 2010 bill and replenish its prudential requirement on or before Jan. 25, 2011, and pay its obligation from the August 2010 to November 2010 billing period on or before Feb. 1, 2011.
As a result of the disconnection, the PEMC added that the cooperative will be “ineligible to participate in the spot market until such time as the market operator notifies the WESM member and all other relevant trading participants that the suspension notice has been revoked.”
The disconnection is in accordance with Circular Number 2010-08-0010 of the Department of Energy on Terminating the Default Wholesale Supplier Arrangement for the Philippine WESM and declaring a disconnection policy.
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