But NCIP and LGU officials ignore advice
In a letter dated June 25, the Department of Energy (DOE) advised Hedcor to continue operating its FLS Hydro, Lon-oy Hydro, and Lower Labay Hydro Plants.
In the said letter, DOE underscored its mandate pursuant to the Electric Power Industry Reform Act of 2001 “to ensure the quality, reliability, security, and affordability of the supply of electric power especially during this period of health pandemic.”
As such, DOE advised Hedcor to continue operating the Lower Labay, Lon-oy, and FLS hydropower plants given the “shortage of available capacity from the grid caused by the unavailability of large power plants as well as derated operation of operating power plants aside from the high system peak demand due to high ambient temperature.”
The DOE likewise reiterated its advisory dated 02 March 2021 entitled, “Ensuring Reliable and Stable Electric Power Supply during the Government’s COVID-19 Vaccine Rollout Program” enjoining all Generation Companies, including Government-owned and Controlled Corporations and private sector-operated and/or owned generation facilities to ensure availability of power supply at the maximum dependable capacities of respective generation facilities and provide the necessary support for COVID-19 vaccine cold storage and healthcare facilities, as well as installing back-up power supply, as needed.
Furthermore, DOE pointed out that as the Energy Regulation 1-94 (ER 1-94) funds are dependent on the kWh generated by power plants, stoppage of operation of power facilities will affect the mobilization of the said funds for COVID-19 response.
“We recognize the concerns of our Bakun IP community and our doors remain open for dialogue. We believe that a tongtongan is crucial to the resolution of this issue, not only to protect the welfare of our IPs/ICCs, but also to fulfill our contribution to ensuring the availability and reliability of power supply for the country,” said Noreen Vicencio, Hedcor’s Vice President for Corporate Services.
Hedcor is ready and willing to sit in a tongtongan with the Bakun IPs at the soonest possible time to address issues and concerns and to realize a way forward that sustains the gains and strengthens the relationship carefully built over the past three decades.
In a related development though, the DOE letter was ignored. On June 30, officials of the Bakun local government unit (LGU), together with representatives from the National Commission on Indigenous Peoples – Cordillera Administrative Region (NCIP-CAR) and the Bakun Indigenous Tribes Organization (BITO) went to Hedcor’s Lower Labay, Lon-oy, and FLS hydropower plant facilities in Bakun to implement a forced shutdown upon the instruction made by the NCIP Regional Office in relation to the Cease and Desist Order (CDO) it issued last June 22. The instruction was made without any reference to the directive from the Department of Energy (DOE) dated June 25 to Hedcor to continue operating.
According to Atty. Jerry A. Marave who accompanied the group to implement the shutdown, a court order and not a letter from the DOE can supersede the CDO. They likewise insisted that the letter from the DOE was not an instruction, rather, a simple reminder.
However, the standing Status Quo Ante Order issued by the Regional Trial Court of Buguias which is a result of a mutual commitment between Hedcor and the LGU, represented by Atty. Sunny G. Sacla, to maintain the uninterrupted operations of the plants, was also not recognized by the group.
“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. 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,” said Hedcor’s Vice President for Operations and Maintenance Leo Lungay.
It can be recalled that DOE underscored in the June 25 letter its mandate pursuant to the Electric Power Industry Reform Act of 2001, “to ensure the quality, reliability, security, and affordability of the supply of electric power especially during this period of thehealth pandemic.”
Furthermore, DOE highlighted in the letter the importance of ensuring “integrity of the power system, pursuant to EPIRA and as mandated by the [aforementioned] circulars and issuances” and emphasized its advice to “continue operating the Bakun hydropower plants in compliance with the said laws, WESM rules, and the Philippine Grid Code.”
“Hedcor has earnestly engaged and constantly reached out to the community in good faith for a reasonable dialogue. Prior to the issuance of this CDO, we were hopeful with the confirmed tongtongan that we were supposed to have with the IP leaders last June 15. However, with the last-minute cancellation advised by the LGU, and followed by the BITO, we are saddened that the situation has come to this,” said Noreen Vicencio, Hedcor’s Vice President for Corporate Services.
“We hear the community’s desire for a dialogue and the demand for a shutdown before any discussions will commence, but we also have a mandate from DOE to continue operations in light of the ongoing power crisis in Luzon. We reiterate our long-standing request to engage in a reasonable dialogue with the community, while allowing the plants to continue running, so we can serve the critical energy needs of the Luzon grid and at the same time, sustain the benefits for the Bakun IPs,” Vicencio added.**
