Transco's transmission lines needed for NPC-Peco linkage
From left: Nelso Homena, Plant Manager,
Panay Diesel Power Pant, Eduardo Eroy,
Head NPC Visayas, and Vice Mayor
Guillermo Dela Llana.l
Panay Electric Company (Peco) already entered into a Power Supply Agreement (PSA) with National Power Corporation (NPC) but it could not yet get power from NPC until it enters into another contract with the National Transmission Commission (Transco).
Vice President for Thermal Generation & Head of National Power Corporation for Visayas Eduardo Eroy said the PSA automatically allows the NPC to sell power supply to Peco.
At present, NPC sells power for P3.3654 per kilowatt hour (kWh) and additional charges of P1.15 per kilowatt hour for wheeling charges from Transco or a total of P4.5154 per kWh, a price or rate lesser compared to what is being paid by city consumers to Peco.
The contract between NPC and Peco was signed by Cyril del Callar and Luis Miguel Cacho, respectively.
However, the signing of the PSA is only a step to end the power supply problem of Iloilo City. The Peco still has to sign another contract with the Transco for the transmission of power supply. The contract is called Transmission Supply Agreement (TSA).
Eroy explained that they could provide Peco with their power needs but the transmission lines of Transco is still needed for physical connection between NPC and Peco.
Eroy said, at present the total power capacity of NPC is 143.40 megawatts (MW). The total peak demand of Panay without Iloilo City is 130 MW. While, Peco only needs an additional 3 MW to compensate the shortage of Mirant-Panay Power Corp.
The NPC official could not however say on whether there would be legal impediments should Peco ink a TSA contract with Transco.
Earlier, the city government requested for the immediate transfer of the 24 MW Power Barge 101 from Cebu to Iloilo City to augment to the city's power needs this summer season.
However, Power Barge 101 is still undergoing repairs in Batangas and is expected to be finished by the month of June.