EPPA’S INJUNCTION MAY RESULT TO AKLAN’S POWER SHORTAGES

“Aklan Electric Cooperative, Inc., (AKELCO) will follow the order” said AKELCO’s General Manager Wilfredo A. Ortiz.

This is in reaction to the Regional Trial Court’s denial of AKELCO and Global Business Power Corporation’s (GBPC) joint Motion for Reconsideration in relation to the Temporary Restraining Order filed by Congressman Florencio T. Miraflores which seeks to stop the implementation of the Electricity Power Purchase Agreement (EPPA) between AKELCO & GBPC (then Mirant Global Corporation).

Following the order, OIC-G.M. Ortiz sent a letter dated July 3, 2007 to GBPC Management informing that AKELCO will temporarily suspend getting the supply of power from GBPC’s power plant until the Petition for Prohibition and Certiorari before the court of appeal is given due course.

Said letter was also furnished to Aklan’s top local government officials and agencies such as the National Electrification Administration, Dept. of Energy, Philippine Tourism Authority, Sangguniang Panlalawigan of Aklan, and the Provincial Governor. Likewise to top organizations in the island of Boracay, the Boracay Chamber of Commerce & Industry (BCCI) and Boracay Foundation Inc. (BFI). Moreover, the letter was also sent to the Bishop of Kalibo, Most Rev. Jose Romeo Lazo.

AKELCO however is apprehensive that stopping GBPC from generating power will result to power shortages in Aklan especially in the island of Boracay being at the tail end of the Visayan Power grid.

AKELCO’s record shows that in 2006, there are more than 60 Manual Load Shedding request from National Power Corporation. From January up to May this year, NPC has requested seven load shedding.

AKELCO’s power quality is also affected. OIC-for Engineering Dept., Engr. Rogen Delos Reyes, reported that as of yesterday, power voltage in the island of Boracay is down to 60 KV only. The standard power voltage should be 69 KV. Low voltage quality according to Engr. Rogen Delos Reyes will result to damage of some appliances and equipments.

The EPPA was entered into by AKELCO to ensure adequate, affordable and reliable supply of power in view of the inability of the NPC to supply all the power requirements of Aklan.

AKELCO’s EPPA with Mirant Global was approved on August 2, 2006. It has undergone the strictest scrutiny required by law, having been approved by the Energy Regulatory Commission (ERC), a quasi judicial body.