PALAWAN Electric Cooperative (PALECO) appealed to Congress and the National Government for immediate intervention to address the sudden increase in power rates that has profoundly impacted the lives of the people in Palawan.
Speaking before the House Committee on Energy, Engr. Rez Contrivida, General Manager of PALECO, said the sudden power rate hike happened after the removal of the subsidy which are given to member-consumers-owners of off-grid electric cooperatives such as PALECO.
PALECO, operating in an area not connected to the Philippine transmission system and part of the National Power Corporation Small Power Utilities Group (NPC-SPUG) area, serves as a vital lifeline in providing electricity to the community.
“I stand before you today not just as the General Manager of the Palawan Electric Cooperative but as a representative of the people of Palawan, particularly the members of PALECO. We are facing a crucial challenge that requires your attention and support,” Contrivida said in his opening statement at the Committee on Energy hearing.
He attributed the surge in rates to the Energy Regulatory Commission’s (ERC) order to halt the implementation of the Power Supply Agreement between PALECO and Delta P Inc. It reached a staggering 108% increase from the generation rate of P6.9520/kWh in October 2023 to P14.4611/kWh in November 2023.
Faced with the imminent threat of massive and prolonged rotational blackouts, PALECO swiftly entered into an Emergency Power Supply Agreement (EPSA) with Delta P, in accordance with the guidelines set forth in the Department of Energy Circular No. DC 2023-06-0021, or the DOE 2023 CSP Circular.
Contrivida said the negotiated procurement of EPSA, as mandated by the circular, has been duly filed with the ERC within the stipulated 30 calendar days after occurrence.
But he pointed out that under the Electric Power Industry Reform Act (EPIRA) Law, PALECO, situated in an off-grid area is entitled to a subsidy regardless of the form of Power Supply Agreement they enter into.
Off-grid areas are those that are not yet connected to the country’s transmission system.
“It is evident that the cost of power in Palawan would have been lower than the current power rate if the subsidy entitled to PALECO Member-Consumers-Owners is being given. The subsidy is crucial to ensuring affordable electricity for our community, and without it, the burden falls heavily on the shoulders of our consumers,” Contrivida said.
He appealed to Congress to explore avenues for reinstating the subsidy entitled to PALECO MCOs, as mandated by the EPIRA Law. He expressed confidence that with the support of Congress, viable solutions can be found to alleviate the burden on the people of Palawan.
The commitment of PALECO to serving the people of Palawan remains unwavering, and they look forward to working collaboratively with Congress to overcome these challenges and secure a sustainable and affordable energy future for the province.
“We are grateful for your time and attention to our plea. May we work hand-in-hand for the betterment of Palawan and its people,” concluded Engr. Rez Contrivida.
