GNPower Kauswagan Ltd. Co., the operator of a 552-megawatt coal-fired plant in Kauswagan, Lanao Del Norte, is seeking to recover P1.371 billion from Davao Del Sur Electric Cooperative for payment of deferred power generation capacity covering June 2020 to September 2022.
GNPower Kauswagan filed a petition for dispute resolution against Dasureco with the Energy Regulatory Commission on their power purchase supply agreement executed on Nov. 21, 2012.
“Despite the extension and accommodation of assistance and attempts to come up with an amicable arrangement in respect to the offtake of the allocated contracted capacity, Dasureco has not made any commitment to GNPK that it will abide by its earlier undertakings,” the company said.
GNPK said it faced “financial ruin as it will greatly affect its ability to recover its capital investments made to construct the power plant” over Dasureco’s alleged refusal to honor its obligations under the PPSA.
GNPK asked the ERC to issue a show cause order against Dasureco “to explain why it should not be held administratively liable for non-fulfillment of Dasureco’s obligations under the PPSA, violation of the least-cost principle and violation of the CSP [competitive selection process] rules,” it said.
The Association of Mindanao Electric Cooperatives Power Supply Aggregation Group Corp., the participating electric cooperatives including Dasureco and GNPower Ltd. Co., signed a memorandum of agreement and a PPSA in 2012.
GNPower, Dasureco and AMRECO PSAG executed an addendum to the PPSA where Dasureco’s allocated contracted capacity was agreed at 34.32 MW. The start of the power supply delivery was set on June 26, 2019.
GNPK received a request in 2013 to reduce Dasureco’s contracted capacity to 10 MW due to the delay of the commercial operations of the plant. Dasureco also signed an MOA with AMRECO PSAG in 2014 reducing Dasureco’s contracted capacity to 10 MW and transferring the unused capacity of 24.32 MW to AMRECO PSAG Corp.
