The Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) is opposing the impending privatization of all hydro power plants owned by the National Power Corporation (NPC) in Mindanao.
The energy group is passing advisories enjoining electric distributors to coordinate with sangguniang bayan and barangay councils in Mindanao who wish to declare resolution contesting said privatization as provided for in R.A. 9136 or the Electric Power Industry Reform Act of 2001.
Accordingly, the SB resolutions will be presented to Pres. Noynoy Aquino during a scheduled conference with barangay officials in Manila on July 29-30, 2010.
Under R.A. 9136, the Power Sector Assets and Liabilities Management Corp. (PSALM) is in charge of disposing all assets of NPC in Mindanao ten years after enactment of R.A. 9136 on June 8, 2001.
Accordingly, the NPC properties that will be sold to the public include the geothermal plant in Mt. Apo, the coal-fed plant in Mis. Oriental, the six agus hydro plants in Lanao del Norte, and the Pulangi 4 plant in Bukidnon, among others.
NPC assets in Luzon and the Visayas were disposed of and were privatized. The National Grid Corporation of the Philippines, which provide energy transmission lines, is also a private entity.
The Aboitiz Power Corporation, which owns the Davao Light, and the Alson’s (Alcantara Group) has signified interest to acquire the NPC assets in Mindanao. Figures as to the actual cost of NPC properties are not yet available.
In the advisory, Clint DG Pacana, AMRECO Executive Director, argued the looming privatization might even raise power rates even more. He stressed that private owners would pass on charges and that they would recover amount of acquisition at soaring rates.
It was learned that after the power barges 117 and 118 were sold in February 2010, electric rates moved up. Pacana described further the privatization as reversing the objective of lowering the cost of electricity. AMRECO is also soliciting the support of the media and other civic organizations to push against the privatization. Religious and student groups were also tapped to file resolutions opposing the auction of the remaining NPC properties.
Unconfirmed reports also said that the 1st Consumers Alliance for Rural Energy (1-Care) is lobbying for the scrapping of some provisions of R.A. 9136 to prevent privatization of the remaining NPC ownership.
Meantime, ZAMSURECO I Information Officer Levi Cabatcha revealed the el niño has lowered water levels of the lakes, particularly Lake Lanao, powering the hydro plants in Mindanao. He said that from January to June this year, hydro plants provide only 33% of the energy requirement instead of the usual 53% average in 2009.
On the other hand, the geothermal plant and the coal plant contribute only 10% and 22%, respectively. Diesel plants supplied 35% of power, more than twice of the usual average of 17%.
Hence, NPC is raising rates to defray cost of diesel. ZAMSURECO I is now collecting P8.30 per kwh, a P2.80 increase of the previous P5.50 per kwh.
“If water levels are low, we experience power curtailment to save water during el niño,” said Cabatcha. He added that power shortages are caused by the limitations of using hydro plants to generate electricity.
“Oil or diesel-powered electric plants may augment the necessary power requirements but its output is more expensive than electricity generated by hydro plants,” he added.
Cabatcha explained ZAMSURECO I has nothing to do with the higher rate. He stressed the wheeling rates result from lack of power supply from the six Agus hydro plants.
Power consumers in Pagadian City have expressed disgust over the imposed rate. Residents complain that they experience frequent brownouts yet they are collected at a higher rate.
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