Solon wants House probe on Camiguin power utility

CAGAYAN DE ORO CITY – Camiguin province's lone district representative,  Xavier Jesus Romualdo, wants the House of Representatives to investigate the island-province's only electric cooperative for alleged mismanagement.

Romualdo on Tuesday said he has already requested the House energy committee to investigate management issues surrounding the Camiguin Electric Cooperative Inc. (Camelco), including its “over contracting” and the exorbitant electricity rates resulting from these deals, as well as the power firm's unpaid financial obligations and losses amounting to hundreds of millions of pesos.

The lawmaker said Camelco officials' alleged mismanagement has caused panic among the people, who fear of looming increase in power rates seen to affect the tourism industry in the island-province--touted as one of the best tourist destinations in the country.

Romualdo, the House energy committee vice chairman, said the committee is expected to convene as soon as Congress resumes its regular session.

In particular, the lawmaker has accused Camelco of entering into contracts with a number of independent power producers that will provide Camiguin with electricity more than its required need.

"In effect, the 19,710 Camelco member-consumers will be the ones to bear the burden of paying for more because of this oversupply of power," Romualdo said.

He said the current residential rate in Camiguin is at P16 per kilowatt hour (kWh), which he said is the most expensive rate in the country today.

Camelco, Romualdo said, “will now start drawing power from another of its suppliers and, when we get our electricity bill in August, calculations show that we will be billed not less than P20.00 per kWh.” (PNA)


According to Romualdo, Camelco’s maximum peak demand is only four megawatts (MW) per day, but the electric cooperative entered into power supply contracts with FDC Misamis Power Corporation for four megawatts, King Energy Generation Inc. for four megawatts, and GN Power Kauswagan for 2.73 megawatts, for a total contracted capacity of 10.73 megawatts.


Camelco also draws two megawatts from the Power Sector Assets and Liabilities Management Corp. (Psalm).


“It is very clear that Camelco contracted too much power and, as we all know, consumers pay for all the power that is contracted even if we do not use it,” he said.


For his part, Camelco General Manager Adriano Ebcas said the contract it signed with FDC Misamis Power and other power producers went through a process and was approved by the Energy Regulatory Commission (ERC).


Ebcas said the reason Camelco contracted FDC Misamis Power for additional power was in preparation for the expansion plans of several business establishments in Camiguin.


A mall and a hotel are under construction in the island and are expected to open in a few months, he noted.


“We have to prepare for it. We have to do it now since it would take three to five years for the ERC to approve a contract. We don’t want to be criticized for not being prepared,” Ebcas said in an interview.