Threat of closure of the three generating units of the 70-megawatt Bakun hydropower facility in Benguet province is seen causing ‘added stress’ on Luzon grid power supply, which is already treading on ‘tight margins’ because of forced outages predicaments of some plants.

On that premise, Senate Committee on Energy Chairman Sherwin T. Gatchalian is nudging the Department of Energy (DOE) “to exercise its mandate to resolve the issues surrounding the impending shutdown of operations” of the Bakun hydro plant.

The lawmaker stressed “at a time when there’s a threat of yellow and red alerts in power supply, we have to make sure that all plants are up and running, especially now that we’re in the middle of a global health crisis.”

Last week, the Bakun hydro plant of Hedcor Inc. of the Aboitiz group was served with a ‘cease and desist order’ (CDO) by the National Commission on Indigenous Peoples – Cordillera Administrative Region (NCIP-CAR), due to “alleged irregularities regarding the free and prior informed consent memorandum of agreement (FPIC-MOA) between Hedcor and the Bakun Indigenous Tribes Organization (BITO)” – a pact that was signed on October 15, 2019.

The NCIP ordered Bakun hydro facility to cease the operations of its three generating units in Lower Labay Hydro, FLS Hydro and Lon-oy Hydro “five days from the receipt of the CDO.” The CDO was issued on June 22.

But as stated by Hedcor Vice President for Corporate Services Noreen Vicencio, “the CDO will not just affect Hedcor, but also the customers and the communities we serve.”

She added “at this time of a red alert situation in the Luzon grid, the continued operation of our plants is very critical.”

Vicencio emphasized “we believe we have been compliant with all the requirements during the course of the FPIC application process, and have been waiting for the issuance of the certificate precondition (CP) since the FPIC-MOA was signed.”

Given the foreseeable adverse impact of the hydro plant’s closure, Gatchalian noted that “while the issue confronting Hedcor and the indigenous communities are legal in nature, I implore the NCIP and DOE to work out a possible solution.”

The lawmaker opined that the development of the Bakun hydropower project should have not been feasible without prior consent and approval, because under the Indigenous People’s Rights Act of 1997 (IPRA), “project developers can only acquire permits and licenses upon the issuance of the certification precondition (CP) by the NCIP which proves consent from the indigenous community where the project will be situated.”