Crown-Desco Investment Holdings Inc., the investor manager of Zamboanga Electric Cooperative Inc. (Zamcelco), has finally agreed to pay half its financial obligations amounting to P220 million, resulting in the recommencement of Western Mindanao Power Corp’s (WMPC) power services to the province.
The return of the power operations provided relief to residents and businesses that were affected by the power outages.
“We are glad to restore power and normalcy to Zamboanga City,” said Vice President for business development of WMPC and the Alsons Power Group Joseph C. Nocos.
WMPC and Zamcelco have reached an agreement during a hearing at the Energy Regulatory Commission (ERC) on April 25 about the petition for dispute resolution filed by WMPC.
Both parties agreed to resume nominating and supplying power to Zamcelco for 60 days effective on April 29, or after receiving receipt of payment from Crown.
“This agreement will provide much needed relief to the power of Zamboanga City, especially during the summer months and as we approach Election Day,” Nocos said.
“By signing the compromise agreement, we reaffirm our commitment to be Zamboanga’s partner for growth in the long term,” Nocos added.
Earlier, WMPC filed a petition at the ERC seeking help regarding Crown’s refusal to pay their debts, amounting to over P467 million from October last year to February 4, when WMPC stopped operating its 105 megawatt fuel-fired power plant due to a critical supply level. Since then, Zamboanga City began experiencing power outages lasting two to six hours.