Traders urge Palawan to solve power problem

MANILA, Philippines - Local business group said the power problem in Palawan should be solved before the summer because it could translate in lost tourism revenues.

In a statement, the Palawan Chamber of Commerce called on all the parties involved to urgently resolve the dispute that is causing the power problems in the main island of Palawan especially the City of Puerto Princesa.

The very popular tourist City of Puerto Princesa was unexpectedly thrown into darkness when power generator Delta P decided to shut down their 16 mw plant last Feb. 2 claiming that they have already delivered the 55 million kwh a year they have contracted and will lose money if they supply more power under the rate approved by the Energy Regulatory Commission (ERC).

“We are facing the summer months when the influx of tourists reach its annual peak and when the vibrant local tourism industry depend on for a big portion of their annual revenues,” the business group said.

“We are supposed to have a very good year for tourism because the hot summer seems to be coming earlier. The lost revenues could run into a million pesos if local and foreign tourists are not assured of power and air-conditioning and they decide to go to alternative vacation destinations like Cebu, Bohol, Davao, and Baguio,” the Palawan Chamber added.

According to the Palawan Chamber, these brownouts are disappointing because Palawan is supposed to be improving its power supply with the signing of the Paleco contract with Delta P for a net dependable capacity of 13.5 mw and the supply of 55 to 72 million kwh of power every year.

Paleco’s other power supply contractor, Palawan Power Generation Inc. is supposed to have completed their rehabilitation of the 9 mw Puerto Princesa diesel plant with a net dependable capacity of 7.2 mw.

The five mw expansion of the plant has been finished and another 5 mw plant in Narra is supposed to be completed in May 2010. Additionally, the Napocor Special Power Utilities Group (SPUG) still maintains a peak and reserve capacity of about 15 mw to help stabilize the power supply in Puerto Princesa.

Delta P is appealing to the ERC on the reduction of their variable costs which the regulatory agency reduced from more than P1 to about 0.31 per kwh based on the cost data and operating costs submitted by Delta P.