ERC sets review of ILP scheme

MANILA, Philippines - The Energy Regulatory Commission (ERC) is reviewing the rules on the Interruptible Load Program (ILP) after consulting with different stakeholders.

Under the ILP scheme, big power users will be asked to run their own generators when supply is short in the summer months, instead of getting their power from the Luzon grid. In exchange, they will be compensated for their fuel costs.

The electricity that would not be taken from the grid would be available to households and other users, sparing them from rotating blackouts.

The ILP, however, is a voluntary scheme unlike the proposed lease or rental of modular generator sets.

For blackouts to be averted next summer when there is a projected power shortage of roughly 700 megawatts, there must be total capacity of 1,000 MW from the ILP to cover the shortfall plus a buffer.

As of this writing, power distributor Manila Electric Co. (Meralco) has signed total captive capacity of 263.45 MW from the ILP, which will come from 38 companies with 197.55 MW and potential sign-ups of 65.90 MW from more companies.

The ERC said to date, nine distribution utilities are implementing the ILP in their franchise areas. These are the Meralco, Davao Light and Power Co., Cagayan Electric Power and Light Co., Bukidnon Second Electric Cooperative Inc., Misamis Occidental II Electric Cooperative Inc., Zamboanga City Electric Cooperative Inc. (Zamcelco), South Cotabato I and II Electric Cooperatives and the Visayan Electric Co.

Following public consultations regarding the program, which is the solution being eyed to address the looming shortage in the summer of 2015, the ERC said there is a need to amend certain provisions of the current ILP rules to be able to allow additional participants such as contestable customers in the ILP and provide a transparent and reasonable recovery of the cost associated.

“One of the solutions being suggested is to encourage participating of more customers under the ILP. Prospective customers may come from contestable customers that already have an existing contract with retail electricity suppliers and those directly connected customers of the National Grid Corp. of the Philippines (NGCP),” the ERC said.

The ERC continues to gather comments from stakeholders before it issues revisions on existing ILP rules.