WMPC, Crown reach agree on power service extension

DOE budget electrification

Western Mindanao Power Corp. (WMPC) has reached an agreement with the Zamboanga City Electric Cooperative to extend its provision to supply power to Zamboanga City for 90 days.

This shall take effect upon the signing of the agreement. The agreement between the two parties is awaiting the Energy Regulatory Commission’s (ERC) approval.

Stated under the agreement, Crown Investment Holdings Inc. (Crown Zamcelco) will pay P150 million to WMPC upon signing the agreement to minimize its debt to the power generator which ballooned to more than P467 million in February this year. 

WMPC’s 105 mega-watt (MW) bunker fuel-fired power plant in Sangali, Zamboanga City stopped its operations after reaching its critical supply level and after Crown Zamcelco discontinued its nomination of power from WMPC, this February.

Crown Zamcelco earlier paid ₱220 million for the months of October and November last year under an initial 60-day compromise agreement which took effect last May 5.

Under the earlier agreement, WMPC provided their power services to Zamboanga City during the May 13 local and national elections.

WMPC earlier filed a petition at the ERC as Zamcelco refused to pay its past due accounts. 

Zamcelco still owes WMPC around ₱ 97 million but for the sake of the people of Zamboanga we will continue to operate and supply power to Zamcelco despite their outstanding debt,” Alsons Power and WMPC Corporate Counsel Jun Mata said.

“Moreover, everything that WMPC has charged Zamcelco is in the existing power sales agreement between the two parties. Their (Crown Zamcelco) contention of overbilling is just based on their belief that our PSA has not taken effect,” he said.

“We maintain that our PSA became effective when both parties agreed to implement it in December of 2015. We at WMPC and Alsons Power are fully committed to our mandate of providing stable, reliable and affordable power to Zamboanga City and help push its economy forward,” he added.

 

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