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Power outages in Magelco’s franchise area postponed during Ramadhan

GOVERNANCE/POLITICS • 18:15 PM Fri Apr 8, 2022
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MENRE press statement

COTABATO CITY - On 24 March 2022, MAGELCO implemented power curtailment with the power availability of an average of four (4) hours a day per municipality in its service area. These twenty (20)-hour power outages hampered the day-to-day activities and substantially burdened the Bangsamoro people in the affected municipalities in Maguindanao.

Amid ongoing discussions with the National Government on BARMM’s role regarding energy security within the region, it is of the Bangsamoro Government’s moral obligation to respond to the needs of its constituents and to develop ways to resolve the long-standing problems on power and electrification.

In line with the recent power situation in the MAGELCO franchise area, official discussions on the matter have commenced on 25 March 2022 with MAGELCO and Power Sector Assets and Liabilities Management Corporation (PSALM), the government-owned and controlled corporation (GOCC) managing outstanding obligations of electric cooperatives including MAGELCO.

AGUS 1 and AGUS 2 generation facilities are being managed by PSALM; hence, it is the sole energy provider of MAGELCO. It has the authority to decide the energy allocation provided to MAGELCO relative to its capacity to pay. Due to the inability of MAGELCO to settle its monthly obligations to PSALM, MAGELCO’s power supply has been reduced by PSALM resulting in the 20-hours rotational blackout in MAGELCO’s franchise area.

BARMM, through the MENRE-Energy Management and Development Services (EMDS), formally requested PSALM to postpone the curtailment of power supply to MAGELCO, especially during the month of Ramadhan.

In PSALM’s response letter dated 7 April 2022, it has agreed to temporarily hold off curtailment of power supply to MAGELCO not only during the month of Ramadhan but until 25 May 2022, the same date when MAGELCO must already be able to comply with the conditions laid by PSALM and to come up with appropriate solutions. PSALM also requested the BARMM-MENRE and the National Electrification Administration (NEA) to assist in urging MAGELCO to immediately comply with the given conditions. As such, further discussions regarding this matter are being pursued urgently and prudently.

With the foregoing, BARMM expresses its gratitude to PSALM for their favorable consideration of the needs of the member-consumers in MAGELCO’s franchise area during their observance of the holy month of Ramadhan.

Rest assured that the BARMM government will continue its stringent efforts to find the ultimate solution to this perennial problem.

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