Gatchalian orders NEA to probe prolonged power problems in Palawan

PUERTO PRINCESA CITY, Aug. 10 – Senator Win Gatchalian has ordered the National Electrification Administration (NEA) to check into the legal responsibility of stakeholders in the spate of persistent power outages that have scourged Palawan since the beginning of this year.

In a media release sent to the Philippine News Agency (PNA) by his office Wednesday afternoon, Gatchalian, who chairs the Senate Committee on Energy, said NEA has until August 11 “to conduct and submit its findings and recommendations.”

“Being the over-all regulator of electric cooperatives, NEA must help identify the root cause of the power interruptions and determine the liability of the PALECO (Palawan Electric Cooperative) for not being able to immediately address the issue,” Gatchalian said during a formal dialogue with Palawan energy stakeholders recently held at the Senate.

The dialogue was initiated by Gatchalian’s committee in the center of growing consumer complaints against PALECO due to frequent and long power interruptions in Puerto Princesa and the province of Palawan.

Complaints, he said, have been recorded from PALECO’s franchise areas, which include Puerto Princesa City, the municipalities of Dumaran, El Nido, Roxas, San Vicente, Taytay, Bataraza, Brooke’s Point, Narra, Quezon, Rizal Sofronio Española and Aborlan, and the island municipalities of Agutaya, Araceli, Cagayancillo, Cuyo, Magsaysay and Balabac.

Data collected by the energy committee showed a maximum of 18 hours of System Average Interruption Duration Index (SAIDI), or the length of power interruption experienced by consumers, in the PALECO-covered areas, with a frequency of at least nine times a month since January this year.

“It is the responsibility of the NEA to ensure that all covered areas of electric cooperatives get reliable power,” Gatchalian said, adding “In this case, PALECO's customers are experiencing serious problems of power outages. NEA needs to step in now; let’s not prolong this problem further.”

He explained that internal internal investigation by the energy committee showed that the power problem was provoked by the failure of independent power producer DMCI Power to deliver the 25 megawatt Guaranteed Dependable Capacity (GDC) in its Power Supply Agreement (PSA) with the PALECO, and what appears to be the electric cooperative’s indecisiveness on the violation of its contract.

Gatchalian chided DMCI Power for the breach of its contractual obligation and gave it until August 11 to submit a plan of action and schedule on how it will accomplish the 25MW power supply requirement under its interim PSA.

Also, Gatchalian urged the PALECO leadership to review all of its existing PSAs with its IPPs and find out if they are complying with their power supply commitments. These are DMCI Power, Palawan Power Generation Inc. (PPGI) and Delta P.

“Since you guys, are in the front line, I strongly suggest that you review your PSAs, bring them to the Board and to your legal counsel. In our own analysis, you have the right to rescind contracts for non-fulfillment,” he said, giving the PALECO until the end of August to submit its report.

Gatchalian said as chair of the energy committee in the Senate, he wants to help Palawan untangle its power problems as much as he can.

“We called for this dialogue to find a solution to this compounding problem in Palawan, especially in Puerto Princesa. Let’s find a solution and narrow it down to a timetable,” he said.

He said it is not only the solution that is important, but also the timetable, as it will affirm the interest of all parties to find a lasting resolution to Puerto Princesa and Palawan’s power woes.

The dialogue was attended by 3rd Palawan District House Rep. Gil Acosta, officials from the Department of Energy (DOE), the Energy Regulatory Commission (ERC), the National Power Corporation (NPC), the NEA, the PALECO, and representatives from the IPPs. (PNA)