Hedcor told to continue operating hydro plants

BY LENIE LECTURA – JUNE 29, 2021
from Business Mirror

The Department of Energy (DOE) wants Hedcor Inc., a wholly-owned subsidiary of Aboitiz Power Corp., to continue operating its three hydroelectric power plants in Benguet province.

In a letter dated June 25, the agency advised Hedcor to proceed with the operations of Labay, Lon-oy and F.L. Singit hydropower plants in Bakun town in Benguet.

This after the National Commission on Indigenous Peoples (NCIP) in Cordillera issued a cease-and-desist order (CDO) against Hedcor last June 22. The CDO stemmed from alleged issues in obtaining consent from indigenous tribes, particularly the Bakun Indigenous Tribes Organization (BITO).

The DOE, however, pointed out that it is mandated “to ensure the quality, reliability, security, and affordability of the supply of electric power especially during this period of health pandemic,” pursuant to the Electric Power Industry Reform Act of 2001.

As such, DOE advised Hedcor to continue operating the hydropower plants given the “shortage of available capacity from the grid caused by the unavailability of large power plants as well as derated operation of operating power plants aside from the high system peak demand due to high ambient temperature.”

The DOE also reiterated its advisory last March titled “Ensuring Reliable and Stable Electric Power Supply during the Government’s COVID-19 Vaccine Rollout Program.” The advisory enjoined all generation companies, including government-owned and -controlled corporations and generation facilities being operated by the private sector to ensure the availability of power supply at the maximum dependable capacities of respective generation facilities and provide the necessary support for Covid-19 vaccine cold storage and healthcare facilities, as well as installing backup power supply, as needed.

The agency noted that Energy Regulation 1-94 (ER 1-94) funds are dependent on the kWh generated by power plants, stoppage of operation of power facilities will affect the mobilization of the said funds for COVID-19 response.

“We recognize the concerns of our Bakun IP community and our doors remain open for dialogue. We believe that the tongtongan is crucial to the resolution of this issue, not only to protect the welfare of our IPs/ICCs, but also to fulfill our contribution to ensuring the availability and reliability of power supply for the country,” said Noreen Vicencio, Hedcor’s Vice President for Corporate Services.

Hedcor said it is ready and willing to sit with the Bakun IPs at the soonest possible time to address issues and concerns and to find a way forward that “sustains the gains and strengthens the relationship carefully built over the past three decades.”