GENERAL MANAGER Jose Raul Saniel of ZAMSURECO-1 said over the weekend that the management has signified its intention to buy the 69 KV transmission lines owned by the National Transmission Corporation (TRANSCO) in the amount of P51-million.

GM Saniel said that the ZAMSURECO-1 Board of Directors had also unanimously approved a resolution granting an authority to the management to enter into a loan agreement with government financial institution to fund the said purchase of transmission lines.

He added that they need P11-million to be used as 20% down payment of the total cost of the 69 KV lines. They will get the amount from the National Electrification Administration in the form of soft loan. The proposed buy-out is also favorable to the cooperative because the remaining balance will be payable within 20 years time, Saniel pointed out.

The Energy Power and Industry Reform EPIRA Law also known as the Republic Act 9136 has the mandate to return back to the distribution utilities the power lines now being managed and maintained by the TRANSCO.

The law provides that only qualified distribution utilities like ZAMSURECO-1 is entitled to own the line purposely to equip the rural cooperative for future competition with private utilities that may want to invest in power and electric industry.

Saniel projected that if TRANSCO will continue to maintain the 69 KV lines, ZAMSURECO-1 would have a hard time competing fairly with the aggregators that may want to operate as independent power distribution utilities in the ZAMSURECO’s franchise area. At least 8 aggregators are planning to invest in the area of ZAMSURECO.

Saniel also clarified that owning the 69 KV transmission lines is advantageous on the part of the members consumers since some of the distribution charges will no longer be included such as the transmission charge that the cooperative is paying to TRASNCO of P1.3-million a month.

However, Saniel pointed out that buying the lines is not an assurance it would bring down the power rates but this may enable the cooperative to cope up with the increasing demand of electricity in 3 to 5 years time.

Engr. Ruben Conti, department manager of TRANSCO Northwestern Mindanao believes that the ZAMSURECO has the financial capacity to buy their 69 KV lines that emanate from Aurora to Pagadian and to San Miguel including Aurora-Molave lines.

Conti added that the coop has the technical know-how of maintaining the lines and they are ready to extend assistance as the need arises.

TRANSCO is now awaiting the official communication from ZAMSURECO to formalize an agreement and to craft the guidelines in conformity with the EPIRA Law.

Last update : 10-06-2008 15:35

Average user rating

   (0 vote)