THE provincial board would start deliberating on the effects of the privatization of Steag State Power Inc.’s Independent Power Producer Administrator (Ippa) today.
Misamis Oriental Vice Gov. Jose Mari Pelaez said energy stakeholders were invited to today’s Sangguniang Panlalawigan session. Among those who have been invited were Misamis Oriental I Rural Electric Service Cooperative (Moresco I) general manager Julie Real, Engr. Joseph Legaspi of Moresco II, Association of Mindanao Rural Electric Cooperatives (Amreco) executive director Clint Django Pacana, and representatives of a consumers’ group.
The concern on the privatization came up when the Power Sector Assets and Liabilities Management (Psalm) set to bid out Steag’s Ippa this Sept. 23.
“This poses a serious concern to us. This is another consumers’ burden,” Pelaez said. “It will also affect businesses and industries which are dependent on electricity.”
Pelaez said he feared an imminent increase in the prices of electricity once the privatization is consummated, citing the case of the Mt. Apo Geothermal Power Plant. He said prior to its Ippa privatization, Psalm charged an average rate of P3 per kilowatthour but after it was privatized, the rate averaged P5 per kwh.
“If the Mt. Apo Geothermal Power Plant, which uses renewable and cheap source of energy, had its rates increased substantially, what more with Steag which uses imported and expensive coal?” Pelaez asked rhetorically. He said the provincial board would likely seek to defer the Steaf’s Ippa privatization.
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