DOE orders reallocation of Agus-Pulangi output


Energy Secretary Alfonso Cusi has ordered the redirection of the Agus-Pulangi hydroelectric power plant’s (HEPP) output to the poor areas and Philippine Economic Zone Authority (PEZA) locations in Mindanao.

The Power Sector Assets and Liabilities Management (PSALM) was ordered to study its re-allocation in order to provide affordable power access to consumers as well as encourage investments in the region.

“I have written a letter to PSALM to study allocating the output of Agus-Pulangi to the poorest of the poor, that means to say the ARMM region and the Lanao area and Maguindanao, so that we can help in devt of the area,” Cusi said.

“The rest will be directed to PEZA so that we can encourage investments in Mindanao, so that we can compete against our neighbors for having cheaper electricity to offer to the manufacturing companies,” he added.

Around 700 to 800 megawatts will be distributed to poor regions in Mindanao while the rest will be redirected to industries, Cusi said.

Around 34 electric cooperatives are looking to extend their contracts with the Agus–Pulangi supply after expiration – a good time to re-allocate the output to areas in need of cheap power supply.

“The contracts [with electric cooperatives] have expired. All ECs wanted to get longer contract, but what I said, at most we can give them one year to have transition, The intent of transition is to give time to ECs to make adjustment and for psalm [to plan] for the dispatch with NGCP,” Cusi said.

This would mean an adjustment in the privatization of the Agus-Pulangi HEPP in 2017. All state-owned power generation and transmission assets must be privatized under the Electric Power Industry Reform Act of 2001.

“That [privatization of Agus-Pulangi] is now being studied,” Cusi said.