Tuesday, September 19, 2023

EPSA “Revolt”

 

Last April, many local politicians in Occidental Mindoro and the populace in general, hailed the move of National Electrification Administration chief Antonio Mariano Almeda consulting with the Occidental Mindoro Consolidated Power Corporation (OMCPC), the province’s sole power distributor, which consequently ended the 20-hour rotational brownout in the province.

Everybody praised Almeda and even thanked the OMCPC owner Manuel Luis Banson for agreeing to run their power plants. A local legislative council even issued a resolution along this line. We are generous enough to thank the same entity that mainly caused the crisis.

We proudly and happily declared then: “Hindi baleng mahal (ang kuryente), basta walang brownout.” Those who were with him on that occasion praised the administrator to the high heavens.

Clouded with our political biases, we succumbed to a propaganda blitz and we excessively believed those. We fed their egos and bred the messianic complex deep inside their very bones. Except for one, our representatives to the OMECO Board threw us into this monetary mess.

We are like oysters stuck to a rotting pole in a murky river as we believe that “Hindi baleng mahal (ang kuryente), basta walang brownout.” But such a frame of mind is not acceptable to me as an electric consumer, who counts to nearly 87,000 province-wide, I cannot afford to pay unjust power rates. Not only because of the prevailing prices of basic commodities and a very high standard of living but because such a situation is full of greed. This will have a domino effect on our local economy. Believe me. All of the small and middle-income families will be affected by this.

On July 13, 2023, Almeda issued a directive to OMECO BOD to withdraw its Joint Application with the Energy Regulatory Commission (ERC) for the approval of the SAMARICA Power Supply Agreement (PSA) and instead enter into a negotiated Emergency Power Supply Agreement (EPSA). The order is an insult to me as OMECO MCO.

The EPSA becomes a silver platter bestowing undeserved financial advantage to OMCPC through the full instant payment of the unreasonably ridiculous True Cost Generation Rate (TCGR) without going into regulatory processes approved both by the Energy Regulatory Commission (ERC) and the National Power Commission (NPC).

Under EPSA, the electricity coming from OMCPC's SAMARICA plant will be paid by MCOs at its total cost or TCGR, since EPSA is not covered by government subsidies. This will reach P16.67 to P20.70 per kilowatt hour (kWh) based on the P53.57 cost of crude oil. The EPSA in SAMARICA is an additional nail on the consumer’s cross as it gives a great advantage to OMCPC as I have said.

Still, we are fooling ourselves by adhering to this mindset: Hindi baleng mahal (ang kuryente), basta walang brownout,” just to defend those people on top of the pedestal sponsoring or supporting and mum on the EPSA and giving the power provider a VIP treatment.

Even if the order is instantaneously deprived, we are denied the UCME Subsidy that we are entitled by law to enjoy, just to please and defend your political patron you keep on believing this foolish phrase you erroneously planted in your predisposed mind: Hindi baleng mahal (ang kuryente), basta walang brownout.” Yes, the EPSA trampled our rights to enjoy our UCME Subsidy by requiring us to pay the OMCPC the full cost for the power supplied from the 20mw bunker-fired power plant per 12 January 2022 EPSA for the municipalities of San Jose, Magsaysay, Rizal, and Calintaan. This EPSA might also be proposed in other service areas of EC and that would spell further disaster.

Even those who are declaring then that, “Hindi baleng mahal (ang kuryente), basta walang brownout,” are now ranting over social media. They result in sarcasm and other gestures of anger. Only now they separate their principles from being a MCO and a political partisan. Having such a point or mindset, we all become part of the debacle we are in. Too late the hero.

All we must do is actively appeal to the national government to continue to include us and other off-grid island provinces in getting the subsidy even if we enter any emergency supply deal. Moreover, we also must assert the termination of the 24-MW SAMARICA PSA and immediately go on with the Competitive Selection Process (CSP) adjusted for the recent power demand. For the concerned power regulators to investigate or look into the alleged violations our sole power provider for the reportedly non-delivery of contracted capacities, among other issues.

Power and electricity must be available and affordable. Everything and anything in the middle is revolting.

We need a sustained supply of electricity, the same way we need it at affordable and reasonable prices.

One should not be sacrificed for the other.

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(Photo: OMECO IEC)

 

 

1 comment:

  1. OMECO IS MANDATED BY THE LAW AND ITS OBLIGATION UNDER ITS GOVT FRANCHISE TO PROVIDE LEAST COST POWER TO ITS CAPTIVE CONSUMERS. NEA ADMINISTRATOR ALMEDA'S ORDER FOR OMECO TO WITHDRAW ITS APPLICATION FOR ERC APPROVAL OF ITS SAMARICA PSA IS HIGHLY IRREGULAR, VIOLATES DUE PROCESS, IS UNJUSTLY OPPRESSIVE TO OMECO AND ITS 87K MCOs and should therefore be null and void for being contrary to law, public policy and morals. LOCAL POLITICAL LEADERS WHO ENDORSE ALMEDA'S HIGHLY IRREGULAR EPSA BY THEIR SILENCE AND ACTIVE MISLEADING ENDORSEMENT ARE NOT PORTRAYING PONTIUS PLIATE, BUT EMULATING JUDAS ISCARIOT.

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