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Monday, January 14, 2013

PSALM allows electric coops to increase years of contract, but to reduce power supply level this year

By Gideon C. Corgue

PAGADIAN CITY, January 14 (PIA)  - - The National Power Corporation (NPC) through Power Sector Assets and Liabilities Management (PSALM) Corporation will increase the number of years of contract in all electric cooperatives in Mindanao but will reduce the supply level of demand of contracted energy for this year.

This was recently revealed by Zamboanga del Sur Electeric Cooperative I (ZAMSURECO I) General Manager (GM) Jose Raul Saniel.

Saniel, who was then board of director of Association of Mindanao Rural Electric Cooperatives (AMRECO) now GM, said PSALM proposed to approve AMRECO’s request of increasing the number of years of their contract from one (1) year to four (4) years saying that 1 year is too short for them to avail their services and brought anxiety to the electric coops.

“Electric coop managers will always be anxious especially during the expiration date of their contract,” Saniel said adding that they are not certain if they could still renew contract with the PSALM.  

AMRECO members, Saniel said used to avail only a 1-year contract from PSALM, the state-run holding company which assumed control of NPC’s .
power plants and where all electric coops used to buy power supply’.

During the recent AMRECO’s board of directors meeting in Cagayan De Oro City, Saniel said PSALM has announced that they will renew electric coops’ contract provided, however that they will reduce the power supply.

The 18,960 kilowatts provided by PSALM to AMRECO in January 2012 will now become 14,094 kilowatts for this year. On February, from 21,000 kilowatts will be reduced to 12,000 kilowatts, and the worst will be on June, from 19,548 kilowatts it will be reduced to 9,552 kilowatts, Saniel sadly reported quoting PSALM.  

Saniel said PSALM’s report of power outlook in Mindanao in 2013 has shocked the AMRECO’s board of directors.

Saniel said despite PSALM’s order to AMRECO to sign a contract with them, they protested the call.

“We (AMRECO) did not sign a contract because if we will do so, this would tantamount to writing a death wish of all electric coops. Instead, the board issued a resolution requesting PSALM to give AMRECO six (6) months leeway to negotiate with them for the retention of power supply enjoyed by the AMRECO in 2012,” Saniel declared.(JPA/GCC/PIA,Pagadian City)