Firm cuts power to Ecija town

PANTABANGAN, Nueva Ecija -- Subsidiary of Lopez-led power producer First Gen Corp. has stopped supplying electricity to a power distribution firm of this town.

The disconnection resulted from the municipal government’s non-payment of more than P80 million in electricity bills since 2008, the company said.

In a statement, First Gen Hydro Power Corp. (FGHPC), which owns and operates the 132-megawatt (MW) Pantabangan-Masiway hydroelectric complex, said it cut off the power supply to Pantabangan Municipal Electric Services (PAMES) on Monday afternoon.

The FGHPC said PAMES failed anew to honor its obligations under the terms of a restructuring agreement last March 16 to settle more than P80 million in debts.

The amount represents the unpaid power bills of PAMES since 2008.

“We have been negotiating with PAMES since they ran first into arrears in 2007,” First Gen vice president Dennis Gonzales said in a text message.

“We have continued supplying to them despite their continuing non-payment, and the expiry of the power supply contract since December 2008, primarily out of concern for the residents of Pantabangan and other PAMES consumers,” he added.