By MT News Network
Tubod, Lanao del Norte---The Energy Regulatory Commission (ERC) had denied the intervention of the Lanao del Norte Electric Cooperative Incorporated (LANECO) and the Misamis Oriental–I Rural Electric Service Cooperative Incorporated (MORESCO-I) during the 2nd public hearing of the National Grid Corporation of the Philippines (NGCP)–Therma Marine Incorporated (TMI) on their application for approval of the Ancillary Services Procurement Agreement (ASPA) conducted in Manila on June 15, 2010 according to a top official of the electric cooperatives.
LANECO BOD President Reinario B. Bihag said that LANECO GM Resnol Torres sent Baroy BOD Benjamin R. Cabatic accompanied by their Legal Counsel, Atty. Florendo B. Opay who attended the 2nd public hearing at ERC Manila making intervention but was denied outright by the ERC because the regulatory period has already lapsed.
This was confirmed by MORESCO–I BOD Vice President Melvyn D. Eballe during the forum yesterday that GM Julie Real and BOD President Bernard R. Benavidez had sent them to attend the said hearing in ERC Manila last week.
This developed when in March 2010 NGCP and TMI submitted to the ERC their application for approval of the Ancillary Services Procurement Agreement (ASPA) with Prayer with Provisional Authority (PA) with separate applications of Power Barge 117 and Power Barge 118 on which the government energy regulating body had approved.
After getting the Provisional Authority (PA) NGCP–TMI billed electric cooperatives in Mindanao P335,717,087.96 for the ancillary services they delivered to electric cooperatives and other private power distribution utilities from February to April 2010 resulting for an increase of P90 per kilowatt hour or P400 to every consumers.
The said astronomical increase of electric bills caused a furor among electric consumers, electric cooperatives and other private power distribution utilities as complaints mounted on the high electric bills.
The astronomical ancillary rates galvanized electric cooperatives in action because even though the ancillary reserve charges are being pass-on to consumers, complains poured to them for the nearly 100% increase of their monthly electric bills.
Member–consumers are expecting to pay lesser electric bills because of the 8–hour brownout daily, discovered that they have to pay an increase of nearly 100% of their electric bills.
The consumers blamed electric cooperatives on the sharp 100% increase of their monthly electric bills, forcing electric cooperatives to seek remedial measures to avert the astronomical rates that are being saddled to member–consumers.
Meanwhile, after forum were being held by various Non–Government Organizations (NGOs) regarding the said astronomical ancillary charges at different areas in Mindanao and the latest was conducted by the People’s Forum on Power and Electricity at the Our Lady of Fatima Parish, Camaman-an, Cagayan de Oro yesterday, Friday, June 25, 2010, that was attended by electric cooperatives, private power distribution utilities, NGOs, government officials, media, religious groups including concern citizens.
According to one of the board of the Mindanao Electric Power Alliance (MEPA) David A. Tauli, that the ERC has issued a warning during the hearing on June 15, 2010 on the tri–media in Mindanao that they will be charged with sub–judici upon learning that the groups are now discussing the faulty ancillary services rates implemented by NGCP–TMI based on the Provisional Authority granted by the ERC.
Tauli distributed copies of his exposé regarding the ancillary reserve services during yesterday’s forum. According to the Section 4, definition of terms (b) of the Electric Power Reform Act (EPIRA) “Ancillary Services” refer to those services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code to be adopted in accordance with the Act and according also to the Philippine Grid Code, “Ancillary Services” support services such as Frequency Regulating and Contingency Reserves, Reactive Power support, and Black Start capability which are necessary to support the transmission capacity and Energy that are essential in maintaining Power Quality and Reliability and Security of the Grid.
And the types of Ancillary Services purchased by NGCP and supplied to the Grid are:
- Regulating Reserve
- Contingency Reserve
- Dispatchable Reserve
- Black Start Reserve
- Reactive Power Support Service
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