TAGUM CITY Consumers in some parts of Mindanao have been told to brace for higher electric bills this

s month. The Davao del Norte Electric Cooperative (Daneco) said consumers should expect an increase in power charges because the cooperative had to buy more expensive power from private firms due to insufficient supply of electricity coming from cheaper, government-owned plants. Almost half of Danecos 71-megawatt (MW) power requirement is being provided by the Aboitiz-owned Therma Marine Inc. (TMI) which charges more for electricity than the state-owned Agus-Pulangi hydropower complex, according to Dean Briz, Daneco board chair. Briz said electricity started to cost more in the aftermath of power shortages that began last April. Briz said Daneco, which serves at least 130,000 consumers in the entire Compostela Valley province and most of Davao del Norte, needs at least 71 MW of electricity. He said at least 20 MW of these come from TMI, owned by the Aboitiz family that was close to the administration of then President Gloria Macapagal-Arroyo. Jose Almendras, President Benigno Aquino IIIs energy secretary, was former treasurer of Aboitiz and Co., the mother firm of TMI. 11-MW shortfall Daneco gets an additional 40 MW from the Agus-Pulangi complex, said Briz. The government-owned facility, however, fell short of its target supply by 11 MW causing frequent brownouts in Compostela Valley and Davao del Norte. Daneco pays at least P10.30 per kilowatt hour to TMI and P3 per kilowatt hour to National Power Corp., which operates the Agus-Pulangi facility. Thats a huge difference, said Briz. The case of Zamboanga City government employee Emmaruth Sadalani could best illustrate the continuing misery brought upon by Malacanangs failure to find a quick solution to Mindanaos power shortage other than President Aquino bluntly telling the people to bear higher costs if they wanted stable electric supply. Sadalani, a government employee, paid P863.48 for her March electric consumption despite the eight to 12 hours of brownouts that plagued Zamboanga City daily that month. Out of 720 hours in a month, we didnt have power for 240 hours, Sadalani said. But instead of paying lower for power in April because of the brownouts, Sadalanis bill even increased to P927.57 that month. Jacqueline Bue, finance department manager of the Zamboanga City Electric Cooperative, said there had been no power-rate increase the past months. What was reflected [in the electric bills], and we cannot do anything about it, were charges on generation system, transmission system, forex and system loss, Bue said. The bills, Bue added, did not yet include additional charges brought by the purchase of power from TMI. Less power, more costs Consumers in North Cotabato have also been warned of higher electric bills this month. Engineer Godofredo Homes, general manager of the Cotabato Electric Cooperative, said the increase was expected as the cooperative was forced to buy power from TMI. We are expecting that TMI will send its bill before June 4, said Homes. This can be our basis for our computation as to how much the increase will be, he said. Kidapawan City is currently enjoying electricity 24 hours a day but the rest of North Cotabato continues to suffer from hour-long daily brownouts. In Butuan City, power rates had surged by 80 centavos per kilowatt hour when the citys lone supplier of electricity Agusan del Norte Electric Cooperative (Aneco) also started buying power from TMI. Danny dela Serna, Aneco spokesperson, said the cooperative was forced to buy 11 MW from TMI after Napocor reduced its supply. Frinston Lim, Julie S. Alipala, Carlo Agamon and Franklin Caliguid, Inquirer Mindanao

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Electricity is very important because it enable us to use machines such as Television sets, ovens, air conditioners and fans which make our life easier. Electricity also enable us to see easily during the night and when in dark places. Electricity is made by burning crude oil and other natural resources which are exhaustible, hence if not saved we will not have electricity in future. Lack of adequate electricity supply in Mindanao and issues on infrastructure deficit, poverty and extreme weather conditions were among the top challenges of most regions in the Philippines last year, a Bangko Sentral ng Pilipinas (BSP) report showed. The central banks 2012 report on regional economic developments released on Monday identified several economic opportunities and challenges in the regions across the country. A major challenge that could hamper regional development, especially for regions in Mi ndanao, is the lack of adequate supply of electricity that threatens various economic activities. Furthermore, the prospect of extreme weather conditions as a result of climate change is a significant issue in the regions, especially those that are heavily reliant on agriculture. The timely implementation of infrastructure projects is, likewise, crucial in advancing regional development, the central bank said in a statement. Of the 17 regions in the country, 12 posted inadequate infrastructure as economic challenges, largely attributed to deficiency in transportation systems and the widespread power shortages in Mindanao. The National Capital Region (NCR), along with Calabarzon, Mimaropa, Central Visayas and the Autonomous Region in Muslim Mindanao (ARMM), cited problems in traffic congestion, lack of land-based transportation facilities especially for goods, inadequate interconnectivity of island provinces as major factors that hampered economic growth last year. Meanwhile, Bicol, Western Visayas, Northern Mindanao, the Davao region, Central Mindanao and Soccsksargen, Caraga and the ARMM had major problems with power distribution citing high power rates, lack of other power sources, delays in the construction of power plants and insufficient and unstable power supply as factors that dampen economic growth in Mindanao. The Zamboanga peninsula reported the shortage of water supply as a key issue in the region. Infrastructure-related projects of the government were largely beneficial to Central Luzon, having seven infrastructure development projects last year. These projects were targeted at improving the facilities of Clark International Airport, road and bridge constructions in Aurora, Pampanga and Central Bulacan, the proposed development of Angat Dam and the completion of the Central Luzon Expressway through parts of Tarlac to Nueva Ecija. Several infrastructure development projects were cited as opportunities in the Cordillera Administrative Region), Cagayan Valley, Bicol, Calabarzon, Mimaropa I and Eastern Visayas. Poverty-related issues, such as malnutrition and child labor also remain to be one of the top problems of regions across the country. According to the BSPs report, poverty remains to be a top challenge in areas in NCR, Western Visayas and Bicol as higher incidences of malnutrition and child labor loom in the said areas. In terms of agriculture, extreme weather conditions that bring about flooding or drought in certain areas largely affect productivity and economic growth in agriculture-dependent regions, such as Cagayan Valley, Central Luzon, Calabarzon, Western Visayas, Zamboanga and Davao.

Other regions also cited pest-infestation, unregulated urbanization, forest degeneration and inadequate loans support as challenges to agriculture productivity. The tourism sector, pending infrastructure improvements and entrepreneurial training are seen to boost economic growth, bringing opportunities to several regions nationwide. Identifying opportunities and challenges faced by the different regions enhances further the BSPs forward-looking and proactive approach to monetary policy, the BSP said.