POWER SUPPLY AGREEMENT CONSULTATIONS
WITH DISTRIBUTION UTILITIES HELD

(30 January 2009)

 

 

In the Energy Family meeting held at Bagac, Bataan in late November 2008, Department of Energy (DOE) Secretary Angelo T. Reyes instructed the DOE, the National Electrification Administration (NEA) and NPC-SPUG to undertake the necessary activities to formalize the power supply arrangements between NPC-SPUG and its customer Distribution Utilities (DUs).  The National Power Board has also mandated NPC-SPUG to enter into formal Power Supply Agreements (PSAs) with all of its customers as a perquisite to the sale of electricity.  Any discounts and subsidy allocation from the Universal Charge for Missionary Electrification shall also be hinged on the PSA.

 

 

In compliance with Secretary Reyes’ and the National Power Board’s directives, NPC-SPUG, in coordination with DOE and NEA, organized two consultative meetings with ECs/DUs to whom NPC-SPUG supplies electricity to emphasize the importance of entering into a PSA, and to present a draft PSA for the consideration of all.  The first meeting, which was attended by DUs from Luzon, was held at the NEA office in Quezon City on 27 January 2009.  The event was graced by DOE EPIMB Director Mylene C. Capongcol, former DOE Undersecretary and now Consultant Melinda L. Ocampo, NEA Deputy Administrator Edilberto I. Bassig, and NPC-SPUG Vice-President Lorenzo S. Marcelo.  The second meeting held at the Aboitiz Foundation on 29 January 2009 in Cebu City was attended by Distribution Utilities from the Visayas and Mindanao.  In both events, General Manager Rene Fajilagutan of the Romblon Electric Cooperative, Inc.  (ROMELCO) gave closing remarks in his capacity as the President of the Association of Isolated ECs.

 

Both the Quezon City and Cebu City consultative meets were well attended by more than one-hundred and fifty (150) General Managers and Board Presidents and other representatives from ECs/DUs, as well as by their counterpart NPC-SPUG personnel from the NPC-SPUG served areas.  A frank and open exchange of ideas and concerns ensued throughout the consultations.  The discussions, led by NPC-SPUG Planning and Technical Services Department Manager Rafael L. Abergas, resulted in material revisions and improvements to the initially proposed draft PSA.  The next hurdle is the presentation of the proposed PSA for approval to the respective Boards of the ECs/DUs.  NPC-SPUG expects to gather all comments and suggestions to the draft PSA by 13 February 2009.  The signing of all PSAs by both NPC and the ECs/DUs is being targeted on the end of February 2009.

NPC-SPUG supplies electric power to thirty-nine electric cooperatives, four Local Government Units and one multipurpose cooperative all over the country.