power and water

NCIP, DOE clash over Aboitiz’s 3 hydro plants

Aika Rey

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NCIP, DOE clash over Aboitiz’s 3 hydro plants

SHUTDOWN. Aboitiz Power Corporations' Lon-oy Hydro power plant in Bakun, Benguet.

Hedcor Inc.

The Bakun municipal government enforces a cease and desist order against Aboitiz Power Corporation's power plants

Aboitiz Power Corporation’s three hydroelectric plants in Benguet were “forcibly shut” by the Bakun municipal government, even as the energy department advised its continuous operations.

The National Commission on Indigenous Peoples (NCIP) issued a cease and desist order to Aboitiz Power subsidiary Hedcor’s Lower Labay Hydro, FLS Hydro, and Lon-oy Hydro because of alleged irregularities in a requirement involving the Bakun Indigenous Tribes Organization (BITO).

Aboitiz Power told the local bourse on Thursday, July 1, that representatives from the Bakun local government unit (LGU), along with NCIP Cordillera Administration Region and BITO, enforced the shutdown order on Wednesday, June 30.

Aboitiz Power said that the LGU did not recognize the letter from the Department of Energy which directed the plant to continue operations. The power firm added the LGU insisted the DOE’s letter was a “simple reminder” and not an instruction.

The Bakun LGU also did not recognize the status quo ante order issued by a regional trial court in Baguias, Benguet.

“Unless DOE expressly states in writing and confirms that their letter sent on June 25 addressed to Hedcor to continue operations is simply a reminder, we will treat DOE’s letter as an order for Hedcor to keep operating our plants in Bakun,” said Leo Lungay, Hedcor vice president for operation and maintenance.

“However, we are forced to stop operations, with the threat posed by the situation. As much as we want to continue delivering power to the Luzon grid, we don’t want to compromise the safety of the community and our personnel,” Lungay added.

The shut down of three hydropower plants comes amid thin reserves at the Luzon grid. The three plants have a dependable capacity of 11.6 megawatts.

Aboitiz Power said in a Wednesday disclosure, citing DOE’s letter, that the department advised Hedcor’s continuous operations “to ensure the quality, reliability, security, and affordability of the supply of electric power especially during this period of health pandemic.” – Rappler.com

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Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.