Notice

Isabel SB slams move to buy TransCo assets

by EVMail News on February 6, 2010

ISABEL, LEYTE – The Sanguniang Bayan of this municipality recently passed and approved a resolution vehemently opposing the acquisition of the Leyte Electric Cooperative V (Leyeco V) based in Ormoc City, of sub-transmission assets from the Mahayag substation to PASAR and PHILPHOS in LIDE, and instead endorsed the LIDE Management Corporation to acquire the same assets.

The Electric Power Industry Reform Act (EPIRA) of 1991 provides for the privatization of certain sub-transmission and distribution assets of the Transmission Corporation or TransCo. The preferred customers are the distribution utilities operating in the area, in this case Leyeco V. However, the bundled sub-transmission assets include the 138kV sub-transmission assets which supplies power to PASAR and PHILPHOS. These companies were previously directly connected with Transco, and enjoyed a preferential rate.

LEYECO V, it was learned, has submitted its intention to acquire the sub-transmission assets which is now pending at the Energy Regulatory Commission (ERC).


Meanwhile, the LIDE companies have already filed an opposition with ERC for the acquisition of the said assets by LEYECO V.

Corollary to its petition w/ ERC to acquire the sub-transmission assets, LEYECO V also filed a petition for power rate adjustment with the same office.

The highlights of the proposed power rate adjustment are: a) increase in Demand Charge from Php 16.50/kW to Php 216/kW; b) additional rate component which is the Members contribution for capital expenditure of Php 0.2904/kwH.

This would mean an increase of about 38% in power cost to LIDE locators, said LIDE managers. This will definitely cause a negative financial impact to the locators, they added.

An executive of one of the companies in LIDE, in expressing his dismay to this situation, even hinted on a possible displacement or closure of some of the LIDE locators.

Based on the statistics with the National Statistics Office, PASAR and PHILPHOS and other LIDE companies contributed about 93% of the total export earning for Region 8. The proposal to acquire the sub-transmission assets by LEYECO V, they pointed out, may result in the “killing of the golden goose that lays the golden eggs” for the region, so to speak.

{ 1 comment… read it below or add one }

1 upset February 7, 2010 at 5:41 pm

kani tanan pangwarta ra sa mga nagduma ani. Unya karon mangayo ug hike sa power rate? Nagaige na man gali brown out sa ormoc unya ang hinungdan kuno aron aa umaabot nga eleksyon aduna enough power? dakung binuang. Ngano ang ormoc ra man ang sige ug brownout? Ngano ang uban lugar wala man? Di na lang mo muangkon nga mga guba na ang inyo mga pasilidad unya a g kwarta nga gitagana para diha sa pagmaintain gibulsa na. Karon mangayo ang mga power producers ug dugang nga bill kay para ipaayo ang ila mga guba nga mga kagamitan? Di ba apil na man na sa amo gibayaran kada buqan ang maintenance? Nahain na man diay to nga kwarta? Pareho ra na sa linya sa rubig nga pabayaran ang magconnect aa bag.o nga tubo unya adto pa gyud ka papaliton sa usa ra ka hardware ug di sa uban. Kay naa man kickback! Obvious man kaayo di ba? Kinsa kaha ang nagpaluyo ani? Ug muabot ang higayon nga ako na ang magpataud ug bag.o nga linya unya inyo ko ipugos nga papalitonsa unireal unya ug magda ko ug di gikan ngadto nya di ninyo itaod ipangkiha ta mo.

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