THE Senate Committee on Energy will be thoroughly studying the planned privatization of Mindanao’s two large hydro power plants owing to the unwavering opposition coming from distribution utilities and consumers.
Senator Sherwin Gatchalian, chairman Committee on Energy said that the position of the Association of Mindanao Rural Electric Cooperative (Amreco) opposing the sale of the Agus and Pulangi Hydro Electric Plants (APHEPs) has credence and should be looked into for the Senate to make a policy position.
“My committee will gather all pertinent information about the APHEPs and conduct formal hearings to arrive at an accurate decision on whether the two hydro plants should be privatized or not.” Gachalian said.
Gatchalian who was the guest speaker during the first Amreco General Membership Assembly in Cagayan de Oro City on November 25 to 26, assured power consumers, particularly the distribution utilities that their concerns would be given due importance in the Senate and resolve issues confronting the power sector.
Amreco has been consistently advocating for the perpetual non-privatization of the APHEPs in Mindanao and continues to hold this stand.
Sergio Dagooc, Amreco president said that the privatization of the hydro plants will result to loss of economic competitiveness of the power supply sector of Mindanao, including that of the commercial and industrial firms in the region that are energy intensive.
“Keeping these hydro plants in the government will certainly moderate any price adjustments as they will give a mix to the price of power that will keep the rate low.” Dagooc said.
The combined capacity of Agus and Pulangi power plants supply about 30 percent of power n Mindanao.
Amreco also said that the capacity of the APHEPs should not be used as ancilliary reserve of the system operators, the National Grid of the Philippines and instead for the transmission company to contract power from other sources given that there is a surplus of supply in the Mindanao grid.
“The electric cooperatives in the country are an important component of the power sector that should be given due government attention for them to adequately serve their consumers with efficient and affordable electricity, and I want to know the parochial problems of these cooperatives to fully understand their concerns.” Gatchalian said.
Gachalian also said that he would lobby for a P400 million funding allocation intended for the disaster risk reduction management program for the power sector that would be coursed through the National Electrification Administration.
He said that such fund would enable the power sector, especially the distribution utilities to react swiftly and bring normalcy by restoring electricity after a disaster.