MANILA – Normal and steady power supply will be back in Zamboanga City by Monday after Crown-Desco agreed to pay its past due accounts to Western Mindanao Power Corporation (WMPC) for the months of October and November amounting to P240 million following a compromise agreement reached during the hearing at the Energy Regulatory Commission (ERC) on Thursday.
ERC hearing officer Gregorio Ofalsa immediately summoned counsels from opposing camps after manifesting their appearances and ordered a recess for more than one hour for the parties to resolve power outages in the city without compromise to their respective petitions.
After a lengthy recess, both parties agreed to resume nominating and supplying power to the Zamboanga City Electric Cooperative (ZAMCELCO) effective Monday, April 29, upon receipt of payment from Crown-Desco, the investor-manager of the electric cooperative.
WMPC earlier filed a petition at the ERC seeking relief from the refusal of Crown-Desco to pay past due accounts that have ballooned to over PHP467 million from October in 2018 to February 4 this year when the Alcantara-owned power plant shut down its 105-MW bunker fuel-fired power plant in Zamboanga due to critical fuel supply level.
Crown-Desco, in turn, filed a petition also seeking relief over alleged overbilling by WMPC, which the latter vigorously denied.
Zamboanga City was hit with power supply and voltage shortages after Crown-Desco stopped nominating power from WMPC prompting Zamboanga Rep. Celso Lobregat to write a letter to ERC to act on the issue.
WMPC thereafter also cut off supply but not before warning that it will be forced to do so if Crown-Desco fails to settle its obligation due to depleted fuel inventory.
WMPC and Crown-Desco also agreed to thresh out differences on the billings incurred for the months of December and January, which amounted to over PHP247 million which is included in the compromise agreement.
In addition, the partial payment of PHP220 million will no longer be contested by Crown-Desco.
The two contending parties also agreed to put into writing the compromise agreement by Monday when, thereafter, ERC hearing officer Alfasa will issue a 60-day status quo ante order.
WMPC vice president Joseph Nocos immediately welcomed the ERC intervention.
“This will provide much needed relief to the people of Zamboanga City, especially during the summer months and as we approach Election Day,” he said.
He also underscored that the resumption of power supply to Zamcelco by Monday will be under the terms and provision of the power supply agreement (PSA) that Crown-Desco had earlier claimed was infirmed and ineffective.
The compromise agreement, however, is without prejudice to the petitions and manifestations both parties submitted for resolution to the ERC.
Early in the hearing, Crown-Desco sought a ruling over its petition questioning the jurisdiction of ERC over the dispute resolution sought by WMPC.
Ofalsa, however, quickly summoned both parties to the bench and urged both parties to reach a compromise agreement before the ERC rules on the main petitions filed by WMPC and Crown-Desco.
This development provided for an immediate solution to the recurring but unscheduled power outages in Zamboanga City that run between 1 to 6 hours every day. (PR)
