Decision of new Paleco Board chair to sign DMCI’s Supplemental PSA upsets civil society

Inside the Conference Room of Paleco (Palawan News file photo)

The civil society group in the Province of Palawan is dismayed by the decision of newly installed chairman of the board of Palawan Electric Cooperative Jeffrey Tan Endriga to sign the supplemental Power Supply Agreement of DMCI Power Corporation.


In a letter of the Palawan Alliance for Clean Energy it urged the board to revisit and reconsider its approval of the proposed Supplemental PSA.


The board (by a majority vote) approved the supplemental agreement despite several issues raised by civil society.


PACE enumerated some of the many contentious issues regarding the supplemental PSA like  the absence of corroboration with the Energy Regulatory Commission on the rate to be charged by DMCI; there was no Grid Impact Study  that has to conducted by DMCI to measure the impact of bunker technology on the performance of the grid; use of old bunker engines with no assurance they will run reliably or economically because the engines are almost 20 years old; DMCI’s failure to comply with its PSA which is in default for not delivering the Guaranteed Dependable Capacity.


It also raised the complaints of residents living near the DMCI’s diesel power plant in Brgy. Irawan which produces too much noise. This issue has reached the City Council of Puerto Princesa and has been under investigation for three years.


“We strongly believe the PALECO BOD should hold in abeyance the execution of the Supplemental agreement and instead open the discussion on this matter to its member-consumers. The resolution of these issues is imperative before the BOD embarks on a new agreement with DMCI,” PACE said in their letter.


Jeffrey Endriga, said that DMCI Power Corporation has already explained the issue on the tariff or cost of electricity it will be charged to Paleco saying that it is lower compared to other independent power producers.


“Kanina na explain na ang taripa. Actually, makakamura tayo kasi wala tayong minimum off-take sa halip kung ano lang ang energy delivered nila yun lang ang sisingilin not like the other IPP’s na may minimum off-take,” Endriga said.


He said that he will sign the Supplemental PSA in the first week of January (2016).


Endriga added that DMCI has requested PALECO to give them (DMCI) ample time to settle their penalty amounting to almost P10M.


“Sa kanilang sulat humihingi sila(DMCI) ng ample time para –settle yan kasi mayroon din naman silang claim sa NPC,” Endriga said.


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