Iloilo leaders to meet GMA over power situation
Officials from both Iloilo city and province, including Malacañang's representative in Region VI, are set to meet personally with President Arroyo this Wednesday to discuss concerns related to the privatization of the Panay Diesel Power Plant (PDPP) in Dingle, particularly the fear of a possible island-wide blackout.
The scheduled meet with Mrs. Arroyo comes several days after the Infrastructure Development Committee of the Regional Development Council passed a resolution Friday last week urging the President to defer the turn over of the PDPP to private firm SPC Island Power Corporation.
SIPC, which bought the 146.5 Megawatt (MW)-PDPP for $5.86 million last year, is poised to take over the power facility in Dingle town on March 26.
Presidential Assistant for Western Visayas, Raul Banias said he will join Mayor Jerry Treñas, Gov. Niel Tupas, and 3rd Dist. Rep. Arthur Defensor in briefing the President of the power situation on Panay Island.
Power distributors in Panay, especially the electric cooperatives, have expressed concern with what SIPC implied when the latter said they will continue to supply electricity, but at their own rates, instead of the State-subsidized rates of the National Power Corporation, Banias said.
And, he added, without the State subsidy, consumers will be paying for the true cost of power. With State subsidy, consumers pay P6.00 – P7.00 per kilowatt-hour. Without the subsidy, Banias said that the power rate will increase by about P2.50 to P3.00.
He also said that it takes the Energy Regulatory Commission (ERC) anywhere from 34-75 days to approve a petition for a power rate increase.
“At the minimum, the ERC can approve the new rates within 34 days from filing of application,” he said, noting that there are only 10 days remaining until SIPC can take over the PDPP, and it has yet to apply with the ERC.
“There is urgency on this matter,” Banias told The News Today yesterday, explaining the need to personally meet with Mrs. Arroyo.
At present, the PDPP answers for 54 MW of Panay's peak demand of 210 MW.
So if you take out 54 MW, electric distributors will have no choice but to shed load, which would result to a rotating brownout, Banias said.