Republic of the Philippines


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ERC resolves ZAMCELCO vs. WMPC squabble

In a hearing recently conducted pertinent to the controversy involving Zamboanga City Electric Cooperative (ZAMCELCO) and Western Mindanao Power Corporation (WMPC) which resulted in a power crisis in Zamboanga City, the Energy Regulatory Commission (ERC) has resolved the squabble between ZAMCELCO and WMPC by encouraging the parties to amicably settle their dispute, thereby averting power outages and further damage on Zamboangeños.  

“The parties, ZAMCELCO and WMPC, have reached a compromise agreement, and ZAMCELCO agreed that the amount of PhP220 Million shall no longer be disputed and will be paid on 29 April 2019, while WMPC shall deliver the contracted capacity upon receipt of the said payment for a period of sixty (60) days based on the provisionally approved Power Supply Agreement (PSA) rate granted to WMPC”, ERC Chairperson and CEO Agnes VST Devanadera clarified.  

The parties are scheduled to meet anew on Monday, 29 April 2019, to further discuss ZAMCELCO’s balance of PhP247 Million and execute a Compromise Agreement to be given imprimatur by the ERC.  

The Electric Power Industry Reform Act (EPIRA) accords the ERC the original and exclusive jurisdiction over all cases contesting rates, fees, fines and penalties imposed by the ERC in the exercise of its powers, functions, and responsibilities and over all cases involving disputes between and among electric power industry participants.

“We are happy to note that the parties were able to come up with a win-win solution which will work for the benefit of the electricity consumers in Zamboanga City.  We urge the electric power industry participants, especially the power generators and distribution utilities, to be conscious and consider the socio-economic impacts of certain actions which should not hinder the delivery of the much needed electric power service to the people that we serve”, Chair Devanadera added.


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