Exempt off-grid areas from coal ban – DMCI exec

MANILA, Philippines — Consunji-led DMCI Power Corp. is pushing for the exclusion of the small power utilities group (SPUG) from the coal moratorium to slash soaring electricity costs, a top executive said.

“I think the moratorium should not cover SPUG (power plants),” DMCI Power chairman and CEO Isidro Consunji told reporters.

SPUG facilities, supervised by state-run National Power Corp., are located in areas and communities that are not connected to the main power grids and are mostly powered by diesel-fired generators.

Consunji has urged the Department of Energy to revisit the policy to ease the financial pressure on off-grid power consumers.

He pointed out that coal is a cheaper alternative to diesel, which he called the “most expensive.”

Implemented in 2020, the coal moratorium halts the processing of applications for greenfield coal facilities.

But the DOE earlier clarified that the moratorium is not a “total ban,” as this does not cover existing and operational coal power plants or those that are already committed.

“I think it’s crazy to phase out coal — it’s the cheapest fuel. If you don’t want to add more, fine, but don’t eliminate it entirely,” the DMCI executive said.

For instance, the company’s coal plant in Masbate has been supplying electricity at a rate of P9 to P10 per kilowatt-hour, significantly cheaper than the P19 to P23 per kWh charged by diesel plants.

DMCI Power, which operates a 15-megawatt thermal plant in Masbate, has an existing 15-year power supply agreement with Masbate Electric Cooperative.

Consunji added that the DMCI group intends to develop a new coal plant in Palawan, which had already received pre-approval before the moratorium was imposed.

At present, DMCI Power owns and operates power plants in Masbate, Palawan and Oriental Mindoro. It plans to expand its portfolio by acquiring more assets and increasing its generation capacity in grid and off-grid areas across the country.