SUWECO cuts ops, brownouts loom

Barrameda noted that the lack of subsidy settlements from NPC had caused operational difficulties, forcing the company to make this decision.

By Maria Bernadette Romero – 05 Oct 2024, 00:20
from Daily Tribune

Power customers in some parts of Catanduanes may have to brace for at least three hours of rotational brownouts starting today as Sunwest Water and Electric Co. Inc. (SUWECO) scales down operations.

SUWECO Business Unit Head Floro P. Barrameda said on Friday that the operational adjustments were triggered by the National Power Corp.’s (NPC) unilateral deferment of payments related to its subsidy billing.

The move is expected to impact services in the area.

Barrameda noted that the lack of subsidy settlements from NPC had caused operational difficulties, forcing the company to make this decision.

“We are not comfortable collecting the full electricity rate, or the True Cost Generation Rate, from FICELCO (First Catanduanes Electric Cooperative Inc.) member-consumers since it would be higher and burdensome for them,” Barrameda said.

NP defaulted on obligations

“We have done everything in our control to prevent this, but unfortunately, NPC has taken a position adverse to the member-consumers of FICELCO by refusing to honor its obligations,” he added.

Since May, SUWECO has been submitting its subsidy billings to NPC, but the payments remain unprocessed and unpaid.

A recent attempt to transmit the August billing was “unjustifiably refused” by NPC-SPUG, bringing NPC’s outstanding balance to SUWECO to P285,215,641.

The refusal stems from the Energy Regulatory Commission’s decision under Case 2023-123 RC in January 2024, which dismissed the application of FICELCO and SUWECO to amend their Electricity Supply Agreement.

SUWECO filed a Motion for Reconsideration in March and has reminded NPC that the ERC’s decision is not yet final. However, NPC has not responded.