Power cut off in Iriga City, 6 Camarines Sur towns

NAGA CITY, Philippines – Electricity has been cut off in Iriga City and six towns in Camarines Sur since 12 noon Monday (March 30) after these areas were disconnected from the Luzon grid for failure to pay their debts to supplier San Miguel Energy Corp. (SMEC).

Fernando Turiano, spokesperson of Camarines Sur III Electric Cooperative (Casureco III), said they have not paid an outstanding debt of P87 million to SMEC, which sought a partial payment of P7.5 million on Monday.

He said Casureco III was uncertain when the power supply in its service areas — Iriga City and the towns of Buhi, Baao, Balatan, Bato, Bula and Nabua — would be restored.

Turiano said Casureco III has been drawing 90 percent of the power supply from SMEC and the 10 percent from the Wholesale Electricity Spot Market.

According to Turiano, 96 percent of their consumers are residential and only four percent are big-load consumers like local government units and business establishments. Casureco III is one of the four power cooperatives distributing power supply in Camarines Sur.

Turiano said that on March 28, the general assembly of the Casureco III voted for “privatization” as a solution to the coop’s recurring problem of inability to pay its power supplier.

But he said the Board of Directors of Casureco III has not determined whether privatization would be through “private investment scheme or concession.”

In December 2013, SMEC also cut off the power supply to Casureco III for a week after it failed to pay its bills. The power was restored after the Department of Energy, National Electrification Administration and the local government units stepped in. Casureco then signed a contract with SMEC to pay P3 million per day until all debts shall have been paid. SFM/AC