The House of Representatives wants to investigate the power crisis now brewing in Palawan and seek relief for its citizens amid the skyrocketing prices of electricity in the province.
House Resolution (HR) 1544, introduced by Speaker Martin Romualdez and Palawan Reps. Jose Chaves Alvarez and Edgardo Salvame, directed the House Committee on Energy to conduct an inquiry, in aid of legislation, on the situation of the Palawan Electric Cooperative (PALECO).
“It has always been the responsibility of the State to provide the people with reliable, secure and affordable power sources. And what is happening in Palawan involving high power rates, low energization levels and inefficient power distribution, Congress needs to intervene,” Romualdez, leader of the 310-strong House of Representatives, said.
“The dire situation in Palawan dampens our enthusiasm over the directives of President Ferdinand Marcos Jr. to provide the people with low power rates and increase energization targets nationwide by 95% in 2025. I hope that with this probe, we can find a solution for all stakeholders in Palawan, especially our citizens,” he added.
Energy rates in Palawan started to rise in November last year after PALECO entered into an Emergency Power Supply Agreement (EPSA) with Delta P, Inc. a month before.
This is due to an Energy Regulatory Commission (ERC) order for the electric cooperative to cease its Power Supply Agreement (PSA) with Delta in line with a Supreme Court (SC) ruling.
The EPSA has a non-extendable life of only one year and is set to expire in October this year.
According to a Department of Energy (DOE) Circular 2023-06-0021, the EPSA between PALECO and Delta shall not be entitled to any subsidy, and this is the main argument being used by the electric cooperative in increasing its power rates.
PALECO argues that the EPIRA Act of 2001 entitles them to subsidies and that the said DOE circular runs contrary to the law because the cooperative belongs to the category of Small Power Utility Groups (SPUG) and is, therefore, entitled to subsidy.
Romualdez said all of these contentions will be clarified once the Committee on Energy commences its hearings on the resolution.
“What is important is we address all matters at the soonest possible time to unburden Palaweños of the power woes of PALECO. Hindi po nila ito kasalanan pero sila po ang nagdurusa sa malaking binabayaran sa kuryente (This not their fault, but they are the ones shouldering the high costs of electricity),” Romualdez said.
As for PALECO, the House leader said they will do everything in their power to aid the cooperative in its current situation.
The electric cooperative is suffering from poor performance. It has the lowest collection efficiency (91%) and the highest non-momentary power interruptions in all of Mimaropa during the second quarter of 2023.
The National Electrification Administration (NEA) also assessed that PALECO has the lowest energization level at 73.67 percent in the region, contrary to President Marcos’s directive for increased energization of 95 percent nationwide by 2025.
“We will try to extend any help or support for PALECO, so that we can have immediate and long-term electricity and energy solutions for every Palaweño,” Romualdez said in Filipino.
“We will also look for ways to help PALECO address its shortcomings and reduce its deficiencies. The sooner we resolve its problems, the sooner we get Palaweños out of this dire situation. As I have said, we aim to help all stakeholders in Palawan, and that includes PALECO,” the Speaker added.
