State-run National Electrification Administration (NEA) will hold a hearing on the administrative complaint against the general manager and other officials of the Camiguin Electric Cooperative, Inc. (CAMELCO) in connection with allegations of overcontracted power supply agreements.
The NEA Administrative Committee set the hearing for Thursday, July 5 at Camelco’s headquarters in Mambajao, Camiguin.
According to NEA Administrative Committee Chairman Atty. Vic Alvaro, the hearing has been scheduled as early as May.
“On 26 June 2018, we received a letter from the Office of Congressman Xavier Jesus Romualdo, requesting the Committee to hold the hearing on July 5 in Camiguin, instead of in Misamis Oriental in view of the interest of the member-consumers of Camelco. Accordingly, the request for transfer of venue was granted,” said the order signed by the Committee.
The administrative case is a motu proprio investigation arising from the letter of Camiguin Rep. Xavier Jesus Romualdo asking the NEA to investigate Camelco’s alleged overcontracting of its power supply, which have resulted in high electricity rates in the island province.
On February 6, 2018, NEA Administrator Edgardo Masongsong issued a memorandum to the Committee to conduct a motu proprio investigation regarding Romualdo’s letter. On May 31, a clarificatory hearing was held.
Romualdo claimed that Camelco entered into power supply contracts with three power generating companies for a total contracted capacity of 10.73 MW, on top of the 2 MW from the Power Sector Assets and Liabilities Management Corp. (PSALM).
However, the congressman said, Camiguin’s power distributor’s maximum peak demand is only 4 MW. He attributed the higher electricity rates in Camiguin to Camelco’s alleged overcontracting.
The NEA, the supervisory body of all electric cooperatives nationwide, is tasked with the implementation of the total electrification of the country, through the ECs.
Any application for power rate adjustments of the ECs, however, undergo the review and approval of the Energy Regulatory Commission (ERC) through public consultation and hearing.
Respondents of the administrative case are Camelco General Manager Adriano Ebcas, Board of Directors president Mario Sacal, and Board members Joseph Gaa, Rey Badilla and Dinnah Limpangog. ###