LOCAL power generation firm Sunwest Water and Electric Co. Inc. (Suweco) is hopeful the payment dispute with the National Power Corp. (NPC) will be resolved soon even as it warned of power interruptions in Catanduanes.
Suweco started scaling down its operations last Saturday, as a result of NPC’s unilateral deferment of payments related to the company’s subsidy billings, some of which the company said have been overdue since May.
First Catanduanes Electric Cooperative Inc. (Ficelco)which over the weekend issued advisories on power interruptions that may be experienced in Catanduanes from Monday to Wednesday this week due to the reduced availability of power supplied by Suweco and low water level at hydro power plants in the region. However, the electric cooperative said the interruptions may or may not occur, depending on the actual power demand and available supply on a given period.
Suweco said in a statement it has promptly been sending its subsidy billings to NPC but despite being duly received by them, the submissions are partially unprocessed and unpaid.
The company said there was also an attempt to transmit the subsidy billing for the month of August but was refused by NPC.
The outstanding amount due to Suweco totals P285,215,641.
Suweco said the refusal of NPC to settle its obligation stems from the decision of the Energy Regulatory Commission (ERC) under Case No. 2023-123 RC dated Jan. 23, 2024, dismissing the application of Ficelco and Suweco for the approval of the second amendment to their electricity supply agreement.
The company filed a motion for reconsideration before the ERC on March 12, 2024, which is pending resolution.
Suweco argued under the terms of the Universal Charge for Missionary Electrification Agreement, deductions from billing collections are not permitted.
The company said it is now forced to scale down its operational schedule through rotational brownouts averaging up to three hours per day.
“We are hoping for the understanding of the thousands of member-consumers of Ficelco who will be directly affected by the brownouts. We have done everything in our control to prevent this, but unfortunately, NPC has taken a position adverse to the member-consumers of Ficelco by its refusal to honor its obligations,” said Floro Barrameda, Suweco business unit head, in the statement.
