Solon to ERC: Act on Tablas power situation

Romblon Rep. Budoy Madrona has called on the Energy Regulatory Commission (ERC) to resolve a pending case before it.

This is in response to the notice sent by the Suweco Tablas Energy Corporation (STEC), the lone power supplier in Tablas Island, that it will scale down its operations by February 15, 2021 due to business losses resulting from the interim approvals of the ERC.

“On behalf of the members-consumers of Tablas Island Electric Cooperative, Inc. (TIELCO), I am appealing to the ERC, headed by Chair Agnes Devenadera, to immediately resolve and give the final rate of STEC. This will avoid a foreseeable power crisis should STEC reduce its operations because of business losses,” Madrona said.

In its notice, STEC informed the ERC that it is constrained to scale down its operations due to business losses, saying that its generation mix should not apply in excess of the maximum net expected energy provided by TIELCO; capping of the diesel rate and use of solar rate in excess of the generation mix; and computation of the generation mix on a monthly basis instead of annual basis.

As a result of these circumstances based on the orders of ERC, STEC has accumulated losses in hundreds of millions of pesos already, the congressman said.

“I understand that the combination of the decisions of the ERC in charging solar rate for diesel rate in excess of the generation mix and computing the generation mix on a monthly basis led to the losses of STEC,” he said.

“ERC should remember its mandate to protect the consumers and the investors as well.  Should STEC reduce its operations, there will now be a power crisis, and it will be the consumers who will also be primarily affected and therefore ERC must act immediately,” the lawmaker added.

“This is embarrassing especially since it is Pres. Rodrigo Duterte who inaugurated the Solar Plant of STEC last August 2019,” Madrona said.

Topics: Rep. Budoy Madrona , Energy Regulatory Commission , ERC , Suweco Tablas Energy Corporation , STEC
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