A DAY after DMCI Masbate Power Corp. (DMPC) discontinued delivering electricity to Masbate Electric Cooperative (Maselco), the company said on Thursday that power was temporarily restored pending discussions to resolve the electric cooperative’s overdue obligation amounting to P240 million.
“This is to inform the customers of Maselco that DMPC has agreed to temporarily restore its power supply to the electric cooperative effective 8 a.m. today [June 1],” said the Consunji-led firm.
DMPC was compelled to discontinue its service to Maselco on May 31 due to the continued nonsettlement of the latter’s overdue obligation. The amount excludes Maselco’s partial payment of P20 million on May 30.
“Despite our repeated requests for payment and demand letters, we have yet to receive any reasonable and acceptable commitment from Maselco to promptly and fairly settle this matter,” DMPC said on Wednesday.
On Thursday DMPC said both parties resumed discussions as to Maselco’s firm and acceptable commitment to settle its overdue obligations, as well as the upgrading of the electric cooperative’s distribution system to ensure reliability of the power supply to its customers.
DMPC is also negotiating with its creditors and suppliers for cooperation and support to ensure temporary supply of electricity to Maselco.
“We appreciate the assistance of Governor Antonio Kho, the Department of Energy, the National Electrification Administration [NEA] and other local government units, all of whom have assured us that the necessary reforms to resolve the issues will be implemented,” it said.
DMCI Power Corp. (DPC), one of the biggest off-grid power producers in the Philippines, has long-term power-supply agreements with Palawan Electric Cooperative (Paleco), Oriental Mindoro Electric Cooperative (Ormeco) and Maselco.
In 2016 DPC posted a 14-percent growth in energy sales volume, from 212 gigawatt-hours (GWh) to 240 GWh, mainly due to higher power demand and dispatch across all cooperatives accounted.
Dispatch to Maselco went up by 11 percent, from 85.81 GWh to 94.91 GWh, following a 5-percent increase in the cooperative’s line connections.
Palawan registered the highest sales growth at 17 percent, rising to 91.27 GWh from 78 GWh. This was mainly on account of increased economic activity in the province and the installation of a satellite plant in Brooke’s Point.
Power sales to Ormeco also grew 11 percent, from 46.24 GWh to 51.76GWh brought about by the full-year operations of the company’s 15-MW bunker-fired diesel power plant in Calapan City.