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Friday, July 28, 2006
Veco hails Transco-Kepco contract
A power distribution firm welcomes the initiative of the National Transmission Co. (Transco) to sign a deal for two 100-megawatt plants proposed by two major power producers, belying reports that this agreement has cost the job of Transo president Alan Ortiz.
“This move aims to address the power supply requirements of the Cebu-Negros-Panay grid,” read a statement issued by Ethel Natera of the Visayan Electric Co. (Veco) of the contract Transco has approved between the Korean Electric Power Corp. (Kepco) and Salcon Power Corp. for the construction of the power plants in Naga, Cebu.
Veco issued the statement amid reports that the Aboitiz group, of which Veco is a part, has lobbied for Ortiz’s replacement.
The press release, however, neither categorically confirmed nor denied the reported lobbying before Malacañang, which was reported yesterday in national dailies.
As of yesterday, Transco public information officer Ben Ypil said Ortiz remained in his post and that he also couldn’t confirm reports that former Energy Regulatory Commission (ERC) Commissioner Oliver Butalid was named the new Transco president.
Butalid reportedly retired as ERC commissioner last July 7.
Capitol-led
Ypil also said it was the Cebu Provincial Government that initiated negotiations for the deal to ensure a market for the Kepco-Salcon plants so their investment will not be wasted.
Ypil said the signing of the memorandum of agreement (MOA) between Kepco-Salcon, Transco, National Power Corp. (Napocor) represented by president Cyril del Callar, and the Power Sector Assets and Liabilities Management Corp. (Psalm) was done two hours before Gov. Gwendolyn Garcia delivered her State of the Province Address last July 14.
The agreement was in response to Veco’s shutting Kepco out of bidding for Cebu’s power supply.
But Natera, in the statement, said that while they are not privy to the details of the Kepco-Salcon-Transco agreement, Veco sees the undertaking as a very positive move to bring power to the Cebu-Negros-Panay grid.
“The impending increased power supply in the island of Cebu allows Veco to have alternatives for sourcing its supply for future power requirements. This will ensure that its customers get reliable, continuous and market-priced power through the Wholesale Electricity Spot Market (WESM) or bilateral supply contracts as approved by ERC.
“Veco looks forward to understanding more about the contract details and its ramifications to the power cost of the Cebu-Negros-Panay grid. Thus, Veco would be happy to sit down with the concerned parties to explore and understand how it can input this additional capacity into its future power demand requirements,” the statement read.
Ypil said that in the agreement, Napocor will buy from Kepco-Salcon 200 megawatts of power, while Transco will provide the auxiliary services such as transmission lines.
He said Garcia considered the agreement an achievement which she is proud of because sooner, Cebu will have power without relying on the Leyte connection.
With these details already ironed out, Garcia, in a separate interview, said Ortiz’s reported ouster will not affect the MOA.
Garcia, however, said she does not want to “second guess” the President when asked about speculations that Ortiz was sacked because of the MOA for Cebu’s power supply.
“Speculations are just that. Lisud kaayo ug mag speculate ta. Ug mao na ang tanan untang namirma hasta si del Callar. But we can’t avoid the speculations considering the relief came after the MOA was signed,” said Garcia.
“But the President has the authority to hire and fire,” she added.
At the Capitol, Ortiz will receive a citation for his efforts in helping Cebu’s power industry during next week’s founding anniversary.
“I do recognize the fact that he was very instrumental in getting all parties together in coming up with this novel approach of ensuring available, affordable power without falling victim to the evils of cross-ownership,” said Garcia.
As for the agreement with Kepco, del Callar told Garcia last Monday that Napocor and Kepco are in an “intensive and extensive” negotiation. “They’re going into the numbers and talks are going on very, very smoothly.” (EOB/JPM)
For Bisaya stories from Cebu. Click here. (July 28, 2006 issue)
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