Madrona to ERC: Move on Tablas power woes

By BusinessMirror – February 5, 2021

REP. Budoy Madrona, Lone Representative, Province of Romblon, has called on the Energy Regulatory Commission (ERC) to resolve a pending case before it in response to the notice sent by the Suweco Tablas Energy Corporation (STEC), the lone power supplier on Tablas Island, that it will scale down its operations by February 15, 2021, due to business losses resulting from the interim approvals of the ERC.

“On behalf of the member-consumers of Tablas Island Electric Cooperative Inc. (Tielco), I am appealing to the ERC, headed by Chair Agnes Devenadera, to immediately resolve and give the final rate of STEC.  This will avoid a foreseeable power crisis should STEC reduce its operations because of business losses,” Madrona said.

In its notice, STEC has informed the ERC that it is constrained to scale down its operations due to business losses, citing that its generation mix should not apply in excess of the maximum net expected energy provided by Tielco; capping of the diesel rate and use of solar rate in excess of the generation mix; and computation of the generation mix on a monthly basis instead of annual basis.  As a result of the aforementioned circumstances which are based on the Orders of ERC, STEC has accumulated losses in the hundreds of millions of pesos already.

“I understand that the combination of the decisions of the ERC in charging solar rate for diesel rate in excess of the generation mix and computing the generation mix on a monthly basis led to the losses of STEC.  ERC should remember its mandate to protect the consumers and the investors as well.  Should STEC reduce its operations, there will now be a power crisis, and it will be the consumers who will also be primarily affected and therefore ERC must act immediately.  This is embarrassing,” Madrona said, “especially (since it was President) Duterte [who] inaugurated the Solar Plant of STEC last August, 2019.”