Mindanao execs protest plans to hike rates for electricity

DIGOS CITY—Davao del Sur and North Cotabato officials are crying foul over plans by the Power Sector Assets and Liabilities Management (Psalm) to increase universal charge for electricity by 30 centavos per kilowatt hour.

The officials said they couldn’t understand why Mindanao should suffer from higher power rates when a large part of the island is dependent on hydroelectric power sources.

Digos City Vice Mayor Reynaldo Hermosisima said the planned increase shows that Psalm is a failure in terms of providing affordable electricity.

Davao del Sur Board Member Nonito Llanos III said what officials could not understand was why Psalm incurred huge debts despite the sale of many government-owned power assets.

Llanos said Psalm has a total debt to independent power producers (IPPs) amounting to about $15 billion.

He said it was puzzling where the proceeds of the sale of assets went.

North Cotabato Vice Gov. Gregorio Ipong said Psalm’s lack of transparency is adding to consumers’ miseries.

Ipong said officials could not accept the proposed increase in universal charge.

North Cotabato Gov. Emmylou Taliño Mendoza said increased rates are the same reasons that the government should not proceed with the sale of two hydroelectric power plants—Agus and Polangui—in Mindanao.

“I am afraid that because of this ill-advised policy, Mindanao will also suffer the fate of Luzon and Visayas,” she said.