IGZI, ZCCIFI: No objection to ERC Issuance of PA to Mapalad PDF Print E-mail
Tuesday, 11 August 2015 11:23

The Industrial Group of Zamboanga, Inc. (IGZI) and the Zamboanga Chamber of Commerce and Industry Foundation, Inc. (ZCCIFI) have submitted to the Energy Regulatory Commission (ERC) a manifestation stating that they have no objection to the issuance of a Provisional Authority to the twin application of Mapalad Power Corporation and the Zamboanga City Electric Coopoerative, Inc.

A few months ago, Mapalad and Zamcelco signed two Power Sales Agreements. The first agreement is a non-firm contract under which Mapalad seeks to supply to Zamcelco  some of its unutilized power from its power stations in Koronadal, South Cotabato and Digos, Davao del Sur. The second agreement is for the supply of 10MW, where Mapalad will rent modular bunker-fired generators and install these in the compound of Zamcelco  who will in turn pay for the lease and use of the modular generator sets.

The first hearing for the PSAs were made by the Energy Regulatory Commission on August 6, 2015 at the Zamcelco multi-purpose covered court.  During the hearings, it became apparent that there are many requirements for Mapalad to submit before a Provisional Authority can be issued by the ERC. The Provisional Authority will enable Mapalad and Zamcelco  to implement the contract pending the final determination of the rates approved by the ERC. In light of the power shortages experienced by the city resulting to 4-6 hours rotational blackout, the issuance of the Provisional Authority at the earliest possible time is important. For this reason IGZI arid the Chamber, who are intervenors in the case, made known to the ERC their joint position that they do not wish to delay the issuance of the provisional authority and that they will participate in any process that will expedite the issuance of the provisional authority.

In earlier press statements, both IGZI and the Chamber explained to the public that the purpose of their intervention is to ensure that Zamboangueños will get the best power rates possible under the circumstances.