Akelco-Mirant amended EPPA questioned
BY BOY RYAN B. ZABAL

KALIBO, Aklan – Bayan Muna Rep. Teodoro ‘Teddy’ Acevedo-Casiño has filed a resolution seeking for a legislative inquiry on the power purchase agreement signed between the Aklan Electric Cooperative (Akelco) and the Mirant Global Power Corp., now called the Global Business Power Corp. (GBPC).
Casiño, who traces his roots in Aklan, said the controversy has caused uproar in the province of Aklan, with consumers led by the People Opposed to Warrantless Electricity Rates (Power-Aklan) and the clergy led by Fr. Isauro David even going to the streets in protest to what they consider an “illegal and immoral power rate increase.”
"The power hike would add more burden to electric power consumers in Aklan if this controversial and onerous amended EPPA is implemented," he said in a press conference on January 13, 2007 here.
In his resolution, Casiño stressed that key officials of Akelco revealed that more power rate hikes are to be expected, and that the total projected power rate increase would reach P2.10 per KwH under a blended cost/rate of power purchased from both National Power Corporation (Napocor) and Mirant, such piece being way above previous electricity rates when Akelco was exclusively buying power from Napocor.
Akelco is the sole electric distributor in Aklan, including Boracay Island and the northern towns of Antique since 1972.
From being one of the worst performing electric cooperatives prior to the takeover of its management by National Electrification Administration (NEA), Akelco has exhibited "exceptional performance, rising from bankruptcy under an E category to an outstanding A+ cooperative.”
Earlier, a caravan and rally protest on December 14, 2006 was held by Power-Aklan assailing the amended EPPA signed on August 3, 2004, which was approved by the Energy Regulatory Commission (ERC) on August 2, 2006.
On September 27, 2006, the Aklan Provincial Board, in its Resolution No. 06-405, also granted Aklan Government Carlito S. Marquez the authority to take legal action against the implementation of the amended EPPA.
Power Aklan stressed under the original EPPA, the Mirant Global would supply electricity with rates similar to the Napocor rate of P4.30 per kWh, including the transmission charges.
However, the Mirant Global would collect a higher rate of P8.82 per kWh, which is 105 percent higher than that of the national power firm in the amended EPPA.
Casiño said the implementation of the rate increase has been questioned by consumers in ERC in a motion filed on November 27, 2006, and in a case filed with the Regional Trial Court.
“In arguing for the original EPPAs, Akelco officials impressed upon the Aklan Provincial Board and the public at large that the rate to be charged to consumers under the Akelco-Mirant EPPA would be equal to or even lower than the Napocor rate, but in presentations after the EPPAs’ were amended, Akelco officials reversed themselves and said that power sourced from Mirant would cost P8.83 per KwH, a 105% increase from the prevailing Napocor rate of P4.31 per KwH,” Casiño added.
“The country’s lawmaking body, it is imperative for Congress to look into issues surrounding the power industry and the rights of its consumers, especially the practice of surreptitiously increasing electricity prices through the amendment of existing power purchase agreements,” Casiño said.