THE Department of Energy (DOE) has postponed the November auction of the bulk energy contract of Steag State Power Incorporated.
Zenaida Monsada, DOE officer-in-charge, said the DOE had to postpone the auction since a prolonged El Niño is threatening Mindanao which may cause a drop of water levels of the Agus-Pulangi hydroelectric complexes.
The DOE had been mulling on privatizing the Independent Power Producer Administration (IPPA) contract for the bulk energy of the 210-megawatt (MW) coal-fired power plant, a move that was opposed by the Misamis Oriental provincial government and the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO).
Privatizing STEAG’s IPPA contract would have led to the privatization of the procurement of the power plants’ fuel requirements and the management of the contracted energy output of the facilities, including the sale of power and offering of ancillary services.
Opponents of privatization pointed out that the move would only lead to a hike in generation costs which in turn would be passed to consumers.
Steag supplies more than a fifth of the Mindanao grid’s power needs.
Monsada admitted that the El Niño would likely affect power supply and a shortage would likely lead to increased power rates.
“So, the direction now is that it would be best if the privatization would take place when supply is stable. So probably by next year,” Monsada said.
Misamis Oriental vice-governor Joey Pelaez, who submitted an appeal to the government requesting for the deferment of the privatization, said he is satisfied that the national government listened to Mindanaons.
"Pasalamat ta kay naminaw na gyud sila sa ato kay we are the ones who has a say on this issue, we are the stakeholders, kita ang ma-apektuhan gyud," Pelaez said.
Pelaez said the construction of power plants in Mindanao should be finished first before the privatization will take place.
"Kung ila gyud gituloy, it would be very disadvantageous to the consumers. I hope we will all be vigilant and I hope this would all be deferred until the power supply in Mindanao is stabilized," Pelaez said. (PJO)