LIGHT ON THE DARKNESS OF CORRUPTION OF ELECTRIC COOPERATIVES IN MINDANAO

By David A. Tauli, President, Mindanao Coalition of Power Consumers

In the year 2104, sixteen electric cooperatives in Mindanao entered into long term power supply contracts with the 405-MW coal power plant of FDC Misamis Power Corporation located in Villanueva, Misamis Oriental, at a price of 5.40 pesos per kilowatt-hour. These power supply contracts were anomalous, having been entered into by the ECs by violating the requirement of the EPIRA for distribution utility companies to carry out least-cost acquisition of power supply for their consumers. This requirement for least-cost acquisition entails among others that the distribution utility companies should carry out public bidding for their power supplies. No public bidding for power supply was carried out by any of the ECs that entered into the anomalous power supply contracts.
In the same period when the miscreant ECs entered into power supply contracts with the FDC coal power plant, two other coal power plants, the 405-MW coal power plant of GNP in Kauswagan, Lanao del Norte and the 300-MW coal power plant of San Miguel (SMCPC) in Malita, Davao del Sur were also offering long-term power supply contracts at prices of around 4.00 pesos/kWh and 4.20 pesos/kWh, respectively. Thus, the deviant ECs would be defrauding their member-consumer-owners (MCOs) in the amount of at least 1.20 pesos per kWh of power supply from the FDC coal plant, and enabling the FDC Misamis Power Corp to earn exorbitant profits in the same amount per kWh. The estimated additional profits of FDC-MPC from the anomalous contracts would have been at least ninety (90) billion pesos over the 25 years of commercial operation of the coal plant.

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