By Joy Tabuada - Dec 17, 2015
http://palawan-news.com/decision-of-new-paleco-board-chair-to-sign-dmcis-supplemental-psa-upsets-civil-society/
The civil society group in the
Province of Palawan is dismayed by the decision of newly installed chairman of
the board of Palawan Electric Cooperative Jeffrey Tan Endriga to sign the
supplemental Power Supply Agreement of DMCI Power Corporation.
In the letter of Palawan Alliance
for Clean Energy it urged the board to revisit and reconsider its approval of
the proposed Supplemental PSA.
The board has unanimously approved
the supplemental agreement despite several issues raised by the civil society.
PACE enumerated some of the many
contentious issues regarding the supplemental PSA like the absence of
corroboration with the Energy Regulatory Commission on the rate to be charged
by DMCI; there was no Grid Impact Study that has to conducted by DMCI to
measure the impact of bunker technology on the performance of the grid; use of
old bunker engines which has no assurance that it will run reliably or
economically because the engines are almost 20 years old; DMCI’s failure to
comply with its PSA which is default for not delivering the Guaranteed
Dependable Capacity.
It also raised the complaints of
residents living near the DMCI’s diesel power plant in Brgy. Irawan which
produces too much noise. This issue has reached the City Council of Puerto
Princesa but still under investigation for three years.
“We strongly believe that the PALECO
BOD will hold in abeyance the execution of the supplemental agreement and
instead open the discussion on this matter to the member-consumers. The
resolution on these issues is imperative before the BOD embarks on a new
agreement with DMCI,” PACE said in their letter.
Jeffrey Endriga, said that DMCI
Power Corporation has already explained the issue on the tariff or cost of
electricity it will be charged to Paleco saying that it is lower compared to
other independent power producers.
“Kanina na explain na ang taripa.
Actually, makakamura tayo kasi wala tayong minimum off-take sa halip kung ano
lang ang energy delivered nila yun lang ang sisingilin not like the other IPP’s
na may minimum off-take,” Endriga said.
He said that he will sign the
supplemental PSA in the first week of January (2016).
Endriga added that DMCI has
requested Paleco to give them (DMCI) ample time to settle their penalty
amounting to almost P10M.
“Sa kanilang sulat humihingi
sila(DMCI) ng ample time para –settle yan kasi mayroon din naman silang claim
sa NPC,” Endriga said.
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