Palawan lawmakers have called for a congressional probe into the province’s power situation, as local electricity costs in the province reached unprecedented highs since November last year.
House Resolution No. 1544, jointly sponsored by Speaker Ferdinand Martin Romualdez and Reps. Jose Alvarez (1st district) and Edgardo Salvame (2nd district), urged the House Committee on Energy to specifically look into the Palawan Electric Cooperative (PALECO) and the electricity supply situation in the province.
Romualdez, who assumed the role of caretaker of the 3rd district following the death of former Rep. Edward Hagedorn in October last year, said their goal is to ensure that the people of Palawan have access to electricity at reasonably priced rates with effective distribution and the establishment of sustainable and durable energy sources to fulfill their requirements based on Section 2(b) of Republic Act 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001.
“It has always been the responsibility of the State to provide the people with reliable, secure, and affordable power sources. And what is happening in Palawan involving high power rates, low energization levels, and inefficient power distribution, Congress needs to intervene,” Speaker Romualdez said.
“The dire situation in Palawan dampens our enthusiasm over the directives of President Ferdinand Marcos Jr. to provide the people with low power rates and increase energization targets nationwide by 95% in 2025. I hope that with this probe, we can find a solution for all stakeholders in Palawan, especially our citizens,” he added.
The probe is expected to look into the circumstances behind the power rate hikes that began in November last year, which, according to PALECO, were triggered by the removal of a national subsidy on the electricity produced by one of its main suppliers, Delta P, Inc., under an emergency power supply agreement (EPSA).
DOE Circular 2023-06-0021 states that PALECO and Delta P’s EPSA will not receive any subsidy.
PALECO earlier explained that it entered into an EPSA contract with Delta P after a Supreme Court ruling on the Alyansa Para sa Bagong Pilipinas affected its contract with the same supplier, which had been awarded through a Swiss challenge method instead of open bidding or a competitive selection process (CSP).
The electric cooperative has challenged the DOE circular, pointing to the EPIRA Act of 2021, which entitles Small Power Utility Group (SPUG) areas like Palawan to subsidy.
Romualdez said all of these contentions will be clarified once the Committee on Energy commences its hearings on the resolution.
“What is important is we address all matters at the soonest possible time to unburden Palaweños of the power woes of PALECO. Hindi po nila ito kasalanan pero sila po ang nagdudusa sa malaking binabayaran sa kuryente,” Romualdez said.
The House probe is also expected to look into PALECO’s overall performance. The cooperative reportedly had the lowest collection efficiency (91%) and the highest non-momentary power interruptions in all of Region IV-B during the second quarter of 2023.
The National Electrification Administration (NEA) also determined that PALECO had the lowest energization level in Region IV-B at 73.67%, Romualdez said.
“Sisikapin naming magpa-abot ng anumang tulong o suporta para sa PALECO upang magkaroon tayo ng agaran at pangmatagalang solusyon sa kuryente at enerhiya para sa bawat Palaweño,” Romualdez declared.
“We will also look for ways to help PALECO address its shortcomings and reduce its deficiencies. The sooner we resolve its problems, the sooner we get Palaweños out of this dire situation. As I have said, we aim to help all stakeholders in Palawan, and that includes PALECO,” Romuldez added.
Earlier, PALECO board chair Maylene Ballares explained that the removal of the Universal Charge on Missionary Electrification (UCME) subsidy under the DOE Circular triggered the local power rate hike.
She pointed out the importance of a unified request to the DOE to comply with the guidelines of EPIRA to reintroduce subsidies, even in the presence of an EPSA. This is particularly crucial, she reiterated, as Palawan is a SPUG area.
“Magsama-sama tayong pumunta sa DOE, sumulat ang mga local government units (LGUs) na ayusin [ang tungkol sa subsidy]. Kasi mayroong discrepancy sa between the DOE Circular [No. DC2023-06-0021] at EPIRA,” she said.
“We are a SPUG area, so we should have a subsidy, o yong Universal Charge on Missionary Electrification (UCME). Kung magkakaroon ng UCME subsidy, babalik sa dati ang bill natin. Hindi lang isang EPSA ang pinag-uusapan natin,” added Ballares.
In addition to the rising electricity prices, PALECO has been facing grievances related to extended power interruptions in areas under its service, such as Puerto Princesa, El Nido, Brooke’s Point, and Rio Tuba in Bataraza.
These outages have long caused inconvenience to residents and businesses, which depend heavily on a consistent supply of power, according to a local coalition of members-consumers-owners (MCOs).
The coalition attributes PALECO’s subpar performance to a combination of factors—the use of outdated and vulnerable distribution lines, which are highly susceptible to short-circuiting incidents, a lack of comprehensive training for their technical staff, and the offering of salaries that are not competitive, potentially affecting workforce quality and motivation.
“Sisikapin naming magpaabot ng anumang tulong o suporta para sa Paleco upang magkaroon tayo ng agaran at pangmatagalang solusyon sa kuryente at enerhiya para sa bawat Palaweño,” Romualdez declared.
“We will also look for ways to help PALECO address its shortcomings and reduce its deficiencies. The sooner we resolve its problems, the sooner we get Palaweños out of this dire situation. As I have said, we aim to help all stakeholders in Palawan, and that includes Paleco,” he added.
Meanwhile, Board Member Ryan Maminta, chair of the Sangguniang Panlalawigan energy committee, voiced his support for the initiative taken by the Palawan congressmen, including Speaker Romualdez.
“We express our gratitude to our lawmakers and will fully support the inquiry in the interest of the Palaweños,” he said.
