Party seeks authority to provide power in Malapascua Island

CEBU, Philippines - Powersource Philippines Inc. has filed application before the Energy Regulatory Commission for authorization to provide electricity service as a Qualified Third Party (QTP) in Malapascua Island in Barangay Logon, Daanbantayan, Cebu.

PSPI, a pioneer in QTP for having been issued the very first Authority to Operate as a QTP in the entire country for barangay Rio Tuba in Palawan, was also selected by Cebu Electric Company II to perform the electrification service in the said island.

CEBECO II is the exclusive franchise holder in the island, as well as other towns in the Fourth and Fifth District of Cebu.

However, CEBECO II declared PSPI as service provider in the island  by declaring it as a  remote and unviable area by the former, who waives its right to provide service in the area in favor of the latter.

In their application, aside from asking ERC to grant such authority, PSPI also asked for the approval of the QTP service contract including the full cost recovery rate; for PSPI to be authorized to charge its customers a tariff equivalent to the ERC-approved retail rate of Cebeco II.

It also asked to direct the National Power Corporation to release the Universal Charges Missionary Electrification to PSPI in accordance with the QTP service contract.

In line with this, the ERC has issued an order for the conduct of pre-trial conference, expository presentation, jurisdictional and evidentiary hearing on February 21, 2014 at 9 a.m. in Malapascua Island.

As stated in their petition that was posted at ERC website, PSPI said that the total capital cost for the generation facilities amounts to P47,287,635 consisting of the costs of the plant equipment, buildings, capitalized expenses and working capital for initial stocks of fuels and lubes and mobilization during plant trials and personnel training.

PSPI has been operating on the island since December 23, 2009 due to constant pressure from the local residents to get energy source.

It said that after they were selected by Cebeco II (sometime in 2009) to act as the service provider, it initially decided to defer installation of its generation and distribution facilities in the site until after the regulatory and administrative framework on QTP projects would be finalized by the concerned authorities.

"However, due to the constant pressure from the local government units and the residents, it finally gave in to the request and gradually began construction," read the petition that was filed on December 27, 2013.

As of  November 2013, PSPI has around 700 connections in the island.

The island, as well as other parts of Northern Cebu, was devastated by super typhoon Yolanda last November 8, resulting to damages on PSPI's facilities amounting to P3.5 million.  (FREEMAN)