NPC AND POWERSOURCE PHILS., INC. SIGN 1st QTP CONTRACT   (18 July 2008)


    National Power (NPC) President Cyril C. Del Callar and Powersource Philippines, Inc, CEO Frederick E. LaCroix signed on Friday, 18 July 2008, the Qualified Third Party (QTP) Service Contract for the supply of electricity in Rio Tuba, Bataraza, Palawan. The contract also includes the provision of subsidies from the Universal Charge for Missionary Electrification (UC-ME).

 

    The contract is the first signed by NPC with a QTP and is in accordance with the Department of Energy’s (DOE):

 

1. Department Circular No. DC2004-06-006 entitled “Prescribing the Qualification Criteria for the Qualified Third Party (the “DOE QTP Qualification Circular”)"; and

 

2. Department Circular No. DC 2005-12-011 entitled “Prescribing the Guidelines for Participation of Qualified Third Parties (QTPs) for the provision of Electric Service in Remote and Unviable Areas, Pursuant to Sections 59 and 70 of the EPIRA and its Implementing Rules and Regulations (the “DOE QTP Participation Circular”)".

 

The operation of Powersource will be further regulated by the Energy Regulatory Commission’s (ERC) Resolution No. 22, Series of 2006: "The Guidelines for the Regulation of Qualified Third Parties Engaged in Missionary Electrification in Areas Declared Unviable by the DOE.”

 

    Powersource initiated operations in Rio Tuba in April of 2005 and was classified as eligible of QTP status because it was already engaged in providing electricity service prior to the issuance of the ERC’s guidelines. It currently provides 24-hour electricity service to approximately 1,000 households using 2 x 250 kW diesel generating sets and plans to increase its system’s capacity this year by an additional 320 kW in September and by another 50 kW using a biogas facility in October.

 

    Powersource shall consequently be filing an application with the ERC for its subsidy allocation from the UC-ME. Such application will include the QTP Service Contract with NPC, the waiver agreement with the Palawan Electric Cooperative, Inc. (PALECO) – signed on 04 July 2008, and the DOE’s certification/endorsement, among others.

 

    Also present during the signing were NPC-SPUG Vice-President Lorenzo S. Marcelo, NPC-SPUG Planning & Technical Services Department Manager Rafael L. Abergas, Powersource Vice-President John D. Hermann, Powersource consultant Marcial Ocampo, and from the DOE, Ms. Alicia De Guzman, Atty. Claudette Ubaldo, and Ms. Maris Mariano.