Capitol focuses on power shortage in Camotes

CEBU, Philippines - Capitol is now addressing the power shortage in Camotes Island after the National Power Corporation asked the local government unit to intervene and help solve the problems being caused by the budget cut in its department.

Governor Gwendolyn Garcia yesterday met with NPC President Froilan Tampinco, Camotes Electric Cooperative General Manager Rolando Camaso and representatives of the Energy Regulatory Commission and mayors of the Camotes Island municipalities.

During the meeting yesterday, the NPC reported that the approved Corporate Operating Budget under the General Appropriations Act for 2011 was only P7.5 billion, a far cry from the proposed P18.2 billion.

Of the said amount, P3.3 billion was correspondingly allocated for fuel and lubricant oil requirements for this year.

The said amount is P4.3 billion short of the actual budgetary requirement of P7.6 billion. Based on the approved budget level, the fuel and lube oil supply for small power utilities grid (SPUG) areas is expected to last only until May 2011 which may be extended to another month should a four-hour blackout be implemented in the said areas during the early mornings.

The NPC has requested the intervention of the Province of Cebu in addressing its predicament with regard to its precarious financial condition and its impact to the power supply in off-grid islands or SPUG areas.

In Cebu, SPUG areas include Camotes Island, Pilar, Doong and Guintarcan islets in Bantayan Island.

There is no problem on power supply in SPUG areas in Bantayan Island prompting Garcia to focus only on Camotes.

At present, Camotes Island only has nine hours of power everyday and it needs around 6,000 liters of fuel to perform a 24-hour operation.

NPC asked Celco to pay in advance the amount of P4.5 million but Camaso said the cooperative has no capability to pay in advance as they only rely on the payment of billing from the consumers.

Celco has an average collection of P5 million per month and it has an average payable amount of P3.2 million to the NPC.

This prompted Garcia to lend P43.5 million to Celco to repay with minimal interest.

A Memorandum of Agreement specifying the terms and conditions is set to be signed on Friday.

The MOA will immediately be implemented and 24-hour power in Camotes will be restored as soon as the fuel is available.   (FREEMAN NEWS)