DMCI to make initial payment of penalty with Paleco

By Joy Tabuada - Jan 19, 2016
http://palawan-news.com/dmci-to-make-initial-payment-of-penalty-with-paleco/

The power giant DMCI Power Corporation has assured the Palawan Electric Cooperative that initial payment for penalty imposed due to its failure to provide the guaranteed dependable capacity in the previous year will be made in February 2016 according to the newly installed Chairman of Paleco Board Jeffrey Tan-Endriga.

Based on the computation of Paleco the penalty is around P10 million.

Endriga however did not elaborate the exact amount the power company would be paying in February.

He added that DPC is asking the support of Paleco for them to collect the penalty due to the power company by the National Power Corporation.

In January 11, 2016, the Supplemental Power Supply Agreement to the July 25, 2012 PSA was signed by Paleco officers and DMCI Power Corporation. The agreement permits DPC to upgrade or convert its diesel engines to bunker.

Endriga said that with the use of bunker fuel, the cost of electricity being supplied by DMCI is reduced.

The decision however of Paleco Board to sign the Supplemental PSA dismayed the civil society group who expressed their sentiments in the previous reports of Palawan News.

In a letter of the Palawan Alliance for Clean Energy it urged the board to revisit and reconsider its approval of the proposed Supplemental PSA.

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 with no assurance they will run reliably or economically because the engines are almost 20 years old; DMCI’s failure to comply with its PSA which is in default for not delivering the Guaranteed Dependable Capacity.