The National Electrification Administration (NEA) has laid
down its recommendations to assist beleaguered Masbate Electric Cooperative Inc.
(Maselco), following a directive from the energy department for the conduct of
a performance assessment and audit on the struggling electric co-operative
(EC).
The Department of Energy (DOE) ordered an audit on Maselco
early last month. It issued Department Order 2019-04-0011, which created a task force “to
audit the system and performance of Maselco in order to assess the root cause
of the problem and to ensure the quality, reliability, security and affordability
of the supply within its franchise area in line with the total electrification
program” of the government.
Maselco is one of the “underperforming, financially and
technically distressed EC submitted by NEA to the DOE” in its December 2018
report.
The task force, according to the circular, shall conduct
performance audit and assessment on Maselco, and make a recommendation to
Energy Secretary Alfonso G. Cusi on the appropriate course of action.
The NEA said it already met with DMCI Masbate Power Corp.
(DMPC) and Maselco representatives last April 30, barely three weeks after the
DOE ordered the audit.
Discussed were the ongoing construction of coal thermal
power plant, the installation of 5 Megavolt Ampere (MVA) power substations for
Cataingan and Uson, and the uprating of National Power Corp. (NPC) 10MVA power
transformer to 30MVA in Mobo.
NEA also recommended the establishment of substations in
strategic locations to reduce system loss, improve power quality and
reliability; review of power supply agreement; and, harmonization of projects,
among others.
It also noted that Maselco has limited control and
monitoring over its own facilities because the existing substations in Masbate
were owned and operated by the NPC, as the transmission line provider, and DMPC
(as lone power supplier).
The NEA also recommended for Maselco to apply early for its
capital expenditure approval before the Energy Regulatory Commission (ERC),
citing its importance “to address operational concerns” and “to sustain the
gains of its improving operations.”
Maselco is currently under the leadership of Romeo V.
Acuesta, whom the NEA designated as project supervisor and acting general
manager last February 20, to ensure the continuation of the reforms initiated
by the agency.
To recall, the NEA, which has supervisory powers over all
ECs across the country, exercised its step-in rights and took over the
operations and management of Maselco in 2017 following the latter’s failure to
settle its overdue obligations to the DMPC.
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