VS. Mirant Power Rates
By Boy Ryan Zabal
Vice Gov. Ronquillo C. Tolentino said, "the provincial government is seriously considering legal action to stop the implementation of the Electric Power Purchase Agreement (EPPA) between the Aklan Electric Cooperative (Akelco) and Mirant Global Corp., an independent power producer."
"It has been a nightmare for Aklanons. The electric rates are grossly detrimental to consumers. The provincial government will file the necessary court action if needed," he said. Fr. Isauro David of the Diocesan Social Action Center also challenged the Akelco board of directors on the reasonableness of the rates. Father David raised the issues of transparency and morality against Akelco management for its non-disclosure of some information prior to the inclusion of the "church" as intervenor.
"In the interest of fair play and righteousness, and for the greater interest of consumer-members, Akelco officials should thoroughly explain the EPPA rates," he said in a forum during Akelco’s Annual General Membership Assembly (AGMA). Over 1,000 members attended the forum held in Lezo, Aklan on Saturday. September 16.
The National Association of Electricity Consumers for Reforms, Inc. (NASECORE) Aklan led by Genaro Mabasa also criticized Akelco and Mirant.
The Sangguniang Panlalawigan of Aklan earlier endorsed the issuance of Environment Clearance Certificate (ECC) in favor of Mirant, but they later found out that the certificate was used by Avon River Holdings, a subsidiary of Mirant.
Ariel Arman Lapuz, Vice President for Commercial of Avon River, explained that Mirant assigned its rights to the EPPAs to Avon River Holdings Corporation during the initial hearing on May 27, 2005 conducted by the Energy Regulatory Commission (ERC).
POWER SHORTAGE
Akelco, the sole distributor of power in Aklan province, including the northern towns of Pandan and Libertad, Antique and Boracay Island, contracted Mirant Global Philippines to supply electricity. At present, there is a shortage of power in the entire Panay Island; the projected supply-demand scenario in the Cebu-Negros-Panay Grid is tight this year.
Akelco, at the long end of the power grid, is vulnerable to power fluctuations and load shedding once the power supply is insufficient, thus it contracted Mirant. National Power Corporation (NPC) President Cyril Del Callar also issued a certification on May 18, 2005, that NPC or its successor generating companies do not have the capacity in the Visayas to supply 12,500 kw and 4,000,000 kwh per month electric power Akelco intends to source from Mirant.Akelco has a current demand of about 25 MW, with 8 MW supplied to the island of Boracay.
Under a 20-year build-own-operate agreement with Akelco, the 12.5-megawatt Nabas plant is one of the two power-generating plants constructed in Aklan, with total investment cost of P800 million, including the 5-MW diesel-fired power plant in New Washington, Aklan. Akelco and Mirant executed two identical EPPAs on October 1, 2003, but it was amended on August 4, 2004, which was also approved by the Akelco board of directors on the following day, August 5. The agreement was further restated in the Amended Agreement to EPPA for the 12.5 MW power plant in Nabas on January 10, 2005.
It was learned that Mirant/Avon River has already constructed the 12.5-Nabas power plant and currently supplying electric power to Akelco beginning April 14, 2005 where the price of the electric power has been pegged at the assured NPC grid rate of roughly P3 per kilowatt hour, below the true generating cost of Mirant.
Lawyer Romeo Inocencio and Aklan SP member Ramon Gelito stressed that "the EPPA entered into by Akelco and Mirant will not help ensure the reliability and competitive pricing of the electric power in Aklan." In its August 2, 2006 decision on the petition for approval of the inclusion of Akelco’s retail rate of costs from EPPA with Mirant, the ERC subjected the base rate of P2.375/Kwh. /MP mailto:madyaas_pen@yahoo.com
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