Beng sees hope in Zamcelco-SMC deal PDF Print E-mail
Thursday, 21 January 2016 13:22


Mayor Beng Climaco commended the Zamboanga City Electric Cooperative (Zamcelco) for striking a deal with the San Miguel Consolidated Power Corporation (SMCPC), a coal-fired power producer that is expected to help ensure normalization of power supply in Zamboanga in the coming months.

Based on the deal, SMCPC will provide a 35MW power supply to Zamcelco at P3.40 pwkh. The deal is in anticipation of the termination of the Zamcelco contracts with Mapalad and Therma Marine Inc. (TMI)- both diesel-fired power producers sometime in March.

Mayor Climaco said she sees hope in the city in the aspiration to normalize power supply. “WE might face increase in our fees because we are heavily reliant on diesel but once San Miguel will come in we expect clearer and brighter future for Zamboanga and we thank the Zamcelco management for this.”

She acknowledged that the P3.40 pkwh rate is the lowest ever offer to Zamcelco and that the contract will not lock down the cooperative and will have liberty to look for cheaper and most competitive rates after the contract expiration.

“Our challenge is to continue to contract more affordable electricity, a P3.40 per KWH rate is the lowest we can have for Zamboanga City,” the mayor said.

Zamcelco Board President Omar Sahi on Monday said flexibility (increase/decrease the contract demand without penalty), cheaper and more competitive rates are among the selling points of the SMCPC which is why the board has chosen to not extend the contract with the two diesel power suppliers when it expires soon.

He stressed that the contract will undergo the competitive selection process, a requirement in the procurement act, before the same can finally be implemented.

Mayor Climaco has been in contact with the Department of Energy, officials of which affirm that the city needs the 50MW power from the Western Mindanao Power Corporation (WMPC) but do not agree to a 10-year deal. It can be on standby when the SMC comes in, the energy officials said.

Per presentation to the mayor last year, the SMCPC claimed they can supply more and support the whole power demand of Zamcelco in 2016, that would mean a 24/7 power supply in the city. The SMC represenatives highlighted that their offer will not lock down Zamcelco and that the coop will have the liberty to look for lower rates after the contract expiration. Flexibility (increase/decrease the contract demand without penalty), cheaper and most competitive rates were among their selling points. — Sheila Covarrubias