Catanduanes power situation returns to normal, says Napocor

By Iris C. Gonzales (The Philippine Star) | Updated July 12, 2014 - 12:00am

MANILA, Philippines - The state-run National Power Corp. (Napocor) said the power situation in the province of Catanduanes has returned to normal on July 7.

Napocor said Catanduanes Power Generation Inc. (CPGI) has fully restored power in the island province. CPGI is the leasee-operator of the 3.6 megawatt generator sets of First Catanduanes Electric Cooperative (Ficelco).

The state-owned power company said the sudden maintenance shutdown and the occasional breakdown of Napocor’s generator set contract with Cost Plus, an Indian company, caused the power shortage in the province.

The insufficient water supply to run the hydropower plants of Sunwest Water and Electric Co. Inc. (Suweco) also contributed to the power shortage.

In 2008, Ficelco entered into a phase in – phase out (PIPO) agreement with Napocor.

By 2009, Catanduanes should have been fully taken over by the private sector.

Napocor vice president for corporate affairs Urbano Mendiola said Ficelco cannot deny responsibility for power failure in the area after it failed to fulfill its obligations under the 2008 PIPO agreement.

Thus, Napocor stressed that its continuing presence in the province is just a temporary measure until full privatization takes place.

Catanduanes is one of the 14 First Wave areas to embark on privatization by virtue of Department of Energy Circular 2004-01-001 prescribing the rules for private sector participation in existing Napocor-Small Power Utilities Group (SPUG) areas. Based on the circular, electric coops may conduct a competitive selection process to secure a new power provider (NPP) that will take over the generation function of Napocor-SPUG.

Local businessmen in Catanduanes have earlier complained over the 20-hour power shortage in the province. source