THE general manager of an electric cooperative in Catanduanes filed with the Energy Regulatory Commission a formal opposition seeking the withdrawal of the application of the electric cooperative he is managing for rate approval of the 8 -megawatt minihydropower plant projects in various sites that are proposed by a private construction company involved in government public works projects which is now into power generation.

Carlos Gianan III, general manager of the First Catanduanes Electric Cooperative in Bicol (Ficelco), denounced the electricity-supply agreement  (ESA) signed by the board of directors of Ficelco with Sunwest Water and Electric Co. (Suweco) because of the allegedly onerous provisions that are disadvantageous to the electric cooperative and its members and can hurt it financially in the future.

He cited the following:

§          The proposed rate is too high for a minihydro-power plant. Worse, it would escalate and will triple in price in the 30-year life of the agreement. The rate cap at 96 percent of the National Power Corp. rate that is provided for under Clause 4.2 does not sufficiently protect Ficelco and its member-consumers because the NPC rate is diesel-based.

§          Suweco wanted the right to sell power to other customers if Ficelco cannot buy all the power they can produce. This will effectively create a competitor within its own distribution area and jeopardize the already small market being served by the electric cooperative.

§          Clause 3.2 effectively makes Suweco the exclusive developer and provider of minihydropower on the island of Catanduanes.

Gianan pointed out that through this provision, Suweco would like the government to allow it to enjoy a monopoly of hydropower generation in the province.       

“This is repulsive and contrary to law and public policy. We should not allow the creation of any monopoly of any kind in Catanduanes,” Gianan said.

§          Suweco wants priority dispatch which creates a contractual conflict with Ficelco’s existing electricity supply agreements that are under construction and development. This will expose Ficelco to substantial contractual and financial liabilities that will hurt the co-op, its services and its member-consumers.

Gianan is a 29 year veteran of the electric cooperative, joining Ficelco as a fresh graduate in 1978, rose through the ranks and became general manager in 2001.

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THE general manager of an electric cooperative in Catanduanes filed with the Energy Regulatory Commission a formal opposition seeking the withdrawal of the application of the electric cooperative he is managing for rate approval of the 8 -megawatt minihydropower plant projects in various sites that are proposed by a private construction company involved in government public works projects which is now into power generation.