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Manila Bulletin devider Philippines devider National devider House energy panel to probe Palawan's power woes 

House energy panel to probe Palawan's power woes 

Published Jan 18, 2024 04:39 am

At A Glance

  • The House of Representatives is eyeing an inquiry on the "dire" power situation in Palawan even as local residents continue to grapple with the high cost of electricity. 
  • No less than House Speaker Martin Romualdez led the filing of House Resolution (HR) No. 1544, which directed the Committee on Energy to conduct an inquiry.

IMG-4c78c12bd0ea128383277c1b3593ab92-V.jpgHouse of Representatives (Ellson Quismorio/ MANILA BULLETIN) 

 

 

 

 

 

 

 

 

The House of Representatives is eyeing an inquiry on the "dire" power situation in Palawan even as local residents continue to grapple with the high cost of electricity. 

No less than House Speaker Martin Romualdez led the filing of House Resolution (HR) No. 1544, which directed the Committee on Energy to conduct an inquiry, in aid of legislation, on the situation of the Palawan Electric Cooperative (PALECO). 

Romualdez, leader of the 300-plus-strong House of Representatives, reckoned that Congress must intervene amid what is happening in Palawan. 

Romualdez said the problems include high power rates, low energization levels, and inefficient power distribution. 

“The dire situation in Palawan dampens our enthusiasm over the directives of President Ferdinand Marcos Jr. to provide the people with low power rates and increase energization targets nationwide by 95 percent in 2025. I hope that with this probe, we can find a solution for all stakeholders in Palawan, especially our citizens,” he added. 

Reports said that energy rates in Palawan started to rise in November 2023 after PALECO entered into an Emergency Power Supply Agreement (EPSA) with Delta P, Inc. a month before. 

This was due to an order issued by the Energy Regulatory Commission (ERC) for the electric cooperative to cease its Power Supply Agreement (PSA) with Delta in line with a ruling of the Supreme Court (SC). 

The EPSA has a non-extendable life of only one year and is set to expire in October this year. 

According to a Department of Energy (DOE) Circular 2023-06-0021, the EPSA between PALECO and Delta shall not be entitled to any subsidy, and this is the main argument being used by the electric cooperative in the increase of its power rates. 

PALECO argued that the Electric Power Industry Reform Act (EPIRA) of 2001 entitles them to subsidies and that the said DOE circular runs contrary to the law since the cooperative belongs to the category of Small Power Utility Groups (SPUG) and is therefore entitled to subsidy. 

Speaker Romualdez said all of these contentions will be clarified once the Committee on Energy commences its hearings. 

“What is important is we address all matters at the soonest possible time to unburden Palaweños of the power woes of PALECO. Hindi po nila ito kasalanan pero sila po ang nagdudusa sa malaking binabayaran sa kuryente,” he said. 

(This is not their fault, yet they are the ones who are suffering.) 

As for PALECO, the House leader and Leyte 1st district congressman said they will do everything in their power to aid the cooperative in its current situation. 

The electric cooperative is suffering from poor performance: it has the lowest collection efficiency (91 percent) and the highest non-momentary power interruptions in all of Region IV-B during the second quarter of 2023. 

PALECO was also assessed by the National Electrification Administration (NEA) to have the lowest energization level at 73.67 percent in Region IV-B. This is contrary to President Marcos’ directive for increased energization. 

“We will also look for ways to help PALECO address its shortcomings and reduce its deficiencies. The sooner we resolve its problems, the sooner we get Palaweños out of this dire situation. As I have said, we aim to help all stakeholders in Palawan, and that includes PALECO,” added Romualdez. 

 

Related Tags

committee on energy Palawan PALECO Martin Romualdez
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