INEC holds seminar on their operation under the Epira law
N A BID to shore up its sagging image brought about by the incessant and steep power rate increase in the last few months, the Ilocos Norte Electric Cooperative (INEC) staged a seminar that focused mainly on the cooperative’s operation under the Epira law on July 26 at the Palazzo de Laoag Hotel. Attended by member-consumers, the local tri-media, the Filipino-Chinese Chamber of Commerce, other businessmen, and mayors of the different municipalities of the province, the one-day seminar featured speakers from the various government agencies in the power sector as well as officials of the power distribution cooperative. Among them were Cesar Faeldon of the National Electrification Administration (NEA), who tackled NEA’s role with regards to the electric cooperatives’ operations; National Transmission Corp. (Transco) division manager Nick Ventura, Transco operations; National Power Corp. (Napocor) corporate staff officer Cynthia Encarnacion and marketing and commercial relations officer Mike Lopez, operations and rates; senior energy regulation officer Amabelle del Rosario of the Energy Regulatory Commission; and Philippine Electricity Market Corp. (PEMC) manager Regino Galindes. INEC’s Board of Director Pres. Lorenzo Ruiz gave the welcome message while acting general manager Renato Balintec gave an overview of INEC’s current operations. An open forum followed after all the discussions were completed where participants were given the opportunity to ask their respective questions. Former Laoag Mayor Roger C. Fariñas, a prime mover of an earlier dialogue between INEC and member consumers to resolve the sudden increase in the last few months, thanked the speakers for their explanation. However during the open forum Fariñas asked to be clarified on the abrupt rate increase implemented by INEC last May and he asked if it is possible for INEC to cancel its contract with Northwind and the Wholesale Electricity Spot Market (WESM) and for the coop to exclusively source its power demands from NPC. He stressed that he strongly believes that the power rate increase was due to the existence of the contract between INEC and Northwind and the WESM. After the speakers explained the issue, Fariñas seemed satisfied with their replies. Engineer Lopez, a NEA official, also announced during the said forum that the NPC has recently approved the INEC request for the increase of its monthly contracted energy with the generation company effective this month, to lessen the impact of buying power from Northwind and the WESM. INEC’s request is until June 2008. NPC’ Encarnacion also explained that the NPC is using the Time of Use (TOU) scheme, wherein power rates are based on the time it is being supplied. Peak hours usage would mean higher rates while low demand hours would also mean lower rates. The NPC official added that this is one of the reasons of the sudden power rate increase last May as consumers were forced to use more energy due to the heat. Meanwhile, ERC’s Ms. Del Rosario stressed that comparing electric rates with ISECO (Ilocos Sur Electric Cooperative) or other distribution utilities could not be the basis for bench marking since rates are market driven. She also stressed that ERC values transparency in all information relative to operations of electric cooperatives all over the country. For his part, Ruiz expressed his gratitude to all the participants, especially to the resource speakers for enlightening all participants about INEC’s operation under the Epira law. Ruiz also took the opportunity to announce that they may suspend the participation of INEC in the WESM, even if under the Epira law, INEC as a member should buy at least 10 percent of its power needs from the WESM. INEC officials also mentioned that they have tried to invite a representative from Northwind to attend the seminar but no one came. Ruiz also expressed that INEC has again invited Northwind to sit down with INEC for both parties to thresh out their differences, especially with regards to the alleged missing provision on their energy sales agreement (ESA), wherein it was stated that if Northwind fails to provide the power specifically mentioned it in their contract, it would look for other energy sources to be sold at the Northwind’s rate. Balintec also thanked all participants as he said that the approval of the NPC of their request means the coop is trying its best to give member-consumers the best service possible. He expressed hopes that with the said seminar, the participants have been enlightened about the INEC’s operations. He further stressed that it should be clear now that INEC has nothing to do with the abrupt increase of power rates recently. Dominic B. dela Cruz
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