ERC steps into Aleco-PEMC row to save Albay from outages

The Energy Department has stepped into the dispute between Albay Electric Cooperative Inc. (Aleco) and the Philippine Electricity Market Corp. (PEMC) — operator of the wholesale electricity spot market (WESM) — to keep Albay from experiencing massive outages. Energy Secretary Jose Rene Almendras said he has directed the National Electrification Administration (NEA) to take the lead in the negotiations. "There is an existing" Energy Regulatory Commission (ERC) order regarding the dispute between Aleco and PEMC, said Almendras, pointing out that Aleco would not experience "disconnection as of yet" from PEMC. Last month, ERC ordered the parties to observe a "status quo" with PEMC enjoined from directing system operator National Grid Corp. of the Philippines to cut Aleco off the electric supply grid. "Any move by National Grid to disconnect Aleco from the supply grid, upon the request of PEMC, would jeopardize the present dispute resolution processes being undertaken by the parties," ERC noted. The conflict between Aleco and PEMC stemmed from a complaint lodged by Aleco in May that PEMC was charging exorbitant prices for its electricity. From Jan. 26 to Feb. 25, PEMC charged Aleco P317 million, an increase of almost 300 percent in its bills. Aleco paid PEMC around P12.46 million, which represents the amount it believes is legally due based on time of use rates of the National Power Corp. or Napocor. Aleco likewise filed another case with the ERC, halting PEMC from enforcing its collection of P276.034 million, which represents the alleged balance from Feb. 26 to March 25. It asked ERC to prevent PEMC from suspending Aleco's membership and participation in the WESM. ERC responded by suspending the proceedings and sent letters to the parties calling for a meeting for a possible amicable settlement. PEMC said in a letter to National Grid that Aleco is no longer a member of the WESM, citing WESM rules that "no person or entity is allowed to inject or withdraw electricity from the grid unless that person is a registered member of the WESM." Aleco said that in the event National Grid implements the disconnection, "it would cause mass confusion and irreparable damage to its consumer-members." "All residential users, as well as the businesses of the province of Albay dependent on Aleco for electrical power supply would literally be plunged into darkness, virtually hindering the daily operations of the said province," Aleco said. —JE/VS, GMANews.TV