ILOILO CITY - Energy Secretary Raphael Lotilla has assured Ilonggos of continued power supply amid threats of a power blackout in Iloilo City.

Lotilla who spoke before the assembly of the Iloilo Business Club Wednesday night said the Department of Energy, Energy Regulatory Commission and power providers in the city "are committed to doing their best to ensure power supply especially during the Christmas season."

The Panay Power Corp. had earlier said it would be forced to stop operating its 72-megawatt power plant today because it could not fulfill its financial obligations with its fuel supplier. PPC is the sole power provider to the Panay Electric Company which distributes electricity to the city's 180 barangays.

PPC said it has been operating at a loss because of Peco's debts of more than P250 million after the ERC ordered a slashed of Peco's rates to its consumers by P2 per kilo-watt-hour.

Peco has a pending before the ERC to restore to increase its rates by around P2 per kwh. The ERC earlier ordered the unbundling of Peco's charges and a reduction of its rates.

ERC chairman Rodolfo Albano Jr. said they have issued a provisional authority to Peco to adjust its rates and to pay the actual cost of generation to PPC. But the order was still not released as of 3:30 p.m. yesterday because one of the five commissioners has not signed the resolution.

Albano said the amount of the increase would be set monthly until a final order of the ERC will be issued. "What is important is that PPC will not cease its operations," Albano said in a telephone interview.

Greggy Romualdez, Mirant public affairs manager, said the PPC "has come up with an arrangement" with its fuel supplier Shell.

He said the arrangement will allow their plant to continue operations for four days. "We continue to seek a lasting position to the current situation," said Romualdez.

Lotilla said the long-term solution to the power supply problem in the city and province relies on putting power supply plants in Panay.

He said the high price of bunker fuel in the world market necessitates the putting up of additional base load on the island. He cited the need to fast-track the construction of coal-fired power plants.

Lotilla said the power supply in the city would still be critical even if Peco would get its electricity from the National Power Corp. because the available supply it can provide to Iloilo is only around 40 mw, way below the 83 mw required by the city.

Mirant, that owns PPC, is proposing the construction of a 200-mw coal-fired plant in Barotac Viejo town in Iloilo. A similar plant is being eyed by DMCI in Concepcion town, Iloilo.

Both plants are, however, facing stiff opposition from environmental and church groups over fears of environmental and health hazards.*NPB

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