House Deputy Majority Leader Erwin Tulfo on Tuesday reiterated the urgency to review the franchise of Palawan Electric Cooperative (PALECO) due to its poor performance since its establishment about five decades ago.

“I think it’s high time that the Committee on Franchise will have to review the franchise of PALECO. We need to get rid of this company. Since 1974, people of Palawan have been suffering the same problem over and over again,” the ACT-CIS Party-List representative said in a congressional hearing on Monday.

Tulfo pushed for review of PALECO franchise after its general manager Rez Contrivida admitted that the power company increased its rates from PHP13.67 to PHP14.71 per kilowatt hour late last year despite continued power interruptions in the province, ranging from four to five hours or more daily.

“Lagi kayong brownout tapos mag-i-increase pa kayo (You’re always into brownouts, then you still impose [rate] increases?) How can you do that?,” he asked.

For his part, Palawan 2nd District Rep. Jose Alvarez suggested to all the officials of PALECO to submit their resignations for refusing to admit their failure to give quality service to Palaweños.

“Tinutulungan namin kayo dito sa Kongreso para solusyunan ang problema, pero hindi niyo inaamin na may pagkukulang kayo, so paano namin kayo tutulungan? Dapat siguro mag-resign na kayo (We are helping you here in Congress to find the solution to the problem, but you don’t want to accept you are committing mistakes, so how can we help you?),” Alvarez said.

Contrivida said the brownout is not under the control of PALECO.

“I’m not lying Mr. Chair, I’m on the distribution side, meron po tayong (we have) transmission system which is not controlled by PALECO,” Contrivida said.

Meanwhile, PALECO appealed to Congress and the national government for the immediate reinstatement of subsidy to address the power rate increases.

Contrivida said that under the Electric Power Industry Reform Act (EPIRA) Law, PALECO, situated in an off-grid area, is entitled to a subsidy regardless of the form of power supply agreement they enter into.

“It is evident that the cost of power in Palawan would have been lower than the current power rate if the subsidy entitled to PALECO member-consumers-owners (MCOs) is being given. The subsidy is crucial to ensuring affordable electricity for our community, and without it, the burden falls heavily on the shoulders of our consumers,” he said. (PNA)

Photo credit: House of Representatives Official Website