Celso: NEA OKs P187 million standby credit for Zamcelco PDF Print E-mail
Wednesday, 06 January 2016 13:36

The National Electrification Administration (NEA) has approved a Php 187-million Stand-By Credit applied for by the Zamboanga City Electric Cooperative (ZAMCELCO), according to Congressman Celso Lobregat who received information on NEA’s approval, Tuesday afternoon from NEA Administrator Edith Bueno.

Lobregat said he has been in touch with Administrator Bueno both by voice call and text messages regarding ZAMCELCO’s application for the Stand-By Credit Facility. It was only on Tuesday afternoon that he received Bueno’s good news.

Lobregat said the Php 187-million Stand-By Credit will ensure that ZAMCELCO will be able to pay for the power supplied by Western Mindanao Power Corporation (WMPC) and the payment for such purchases can be drawn from the Stand-By Credit Facility.

The congressman explained that ZAMCELCO badly needs the Stand-By Credit considering that it is operating at a loss and the facility will serve as a guarantee to the supplier that ZAMCELCO will be able to pay for its power purchases. ZAMCELCO’s is suffering from huge financial problem mainly due to its high system’s loss now averaging 20 % per month. The NEA-prescribed System’s Loss maximum rate is 13 %. ZAMCELCO loses Php 2-million  for every 1 % system’s loss in excess of the allowed System’s Loss rate.  This translates into losses of Php 14-million a month or Php 168-million a year.

It will be recalled that the Energy Regulatory Commission (ERC) on Dec. 11, 2015 granted ZAMCELCO a provisional authority to draw 50 megawatt power from WMPC.  WMPC subsequently agreed to provide the request for power by ZAMCELCO even without without a loan or Standby-Credit Facility secured by ZAMCELCO. Zamboanga City electric consumers, in turn, benefitted by enjoying ZERO BLACK-OUT throughout the Christmas season and onward up to this time.

With NEA’s approval of the Stand-By Credit, WMPC is now assured that ZAMCELCO will be able to pay the power drawn from WMPC, Lobregat said. — Lea LM