City, Beneco tiff over power sale unresolved

By Paul Rillorta

BAGUIO CITY – The issue of whether the Benguet Electric Coop. Inc. will purchase power from the city’s Asin mini hydro plants has not yet been resolved.

Majority of councilors here said the decision of Beneco to stop purchasing from the power plant here was “bad timing.”

During a special session Monday, councilors met with Beneco general manager Gerardo Versoza and the firm’s board of directors to discuss the issue.

Councilor Betty Lourdes Tabanda said, “the decision of the Beneco board is affecting the delivery of services to the people.”

But Beneco lawyer Alfredo Santos said the decision of the board was more of a legal issue considering the city government as a “power producer” should first secure a “certificate of compliance” from the Energy Regulatory Commission.

Under the Electric Power Reform Act of 2001 or RA 9136, Section 6 “any new generation company shall, before it operates, secure from the Energy Regulatory Commission a COC pursuant to the standards set forth, as well as health, safety and environmental clearances from appropriate government agencies under existing laws.”

Santos said, “continuous purchase of power from the city as a supplier is a violation considering that the city government has not secured the necessary Certificate of Compliance from the Energy Regulatory Commission.”

Councilors here however argued that based on said act, only “new generation companies,” will secure the needed COC in which case the city government has in fact operated the plant even before the effectivity of the law.

Beneco halted purchase of power from the city owned Asin mini hydro electric power plants  October this year citing legal implications and administrative sanctions and penalties the ERC might impose citing lack of the needed COC and an Energy Purchasing Power Agreement between the city government and Beneco.

However, councilor Fred Bagbagen said an “interim agreement exists between the city and Beneco reason why the distribution company has been purchasing power for over five years now until its decision to stop.”

Versoza said the MOA between the city government as an electric supplier and Beneco as a power distributor still needed corrections and they have relayed the proposed amendments to the city for its perusal.

“We are willing resume the purchase of power from the city government if the necessary certificate of compliance has been secured and are willing to enter into an energy power purchasing agreement ,” he said.

Meantime, Mayor Mauricio Domogan said, a letter of query was sent to the ERC regarding the issue. “We are asking ERC if the city government should secure a certificate of compliance from them considering that under the city charter, the city can sell power without the COC and only those newly created power plants are required to secure it,” he said.

Domogan added because Beneco refused to buy from the Asin mini hydro, the city was forced to lay-off its workers at the plant and the expected revenue of 30 million could not be met.