Mactan Export Zone power usage down by 25%

CEBU, Philippines - East Asia Utilities, the power provider at the Mactan Export Zone (MEZ), reported a 25 percent decline in power consumption brought about by the streamlining of operations of the locators.   

In an interview with East Asia Utilities general manager Roger Lim, he said that in the last few months, since some electronic companies started to streamline their operations, and cut off manpower counts, power consumption started to plunge, thus the company is now importing its excess power to Balamban, wherein shipbuilding companies are needing more power supply.

Last year, MEZ total power requirement hit 22 million kilowatt/hour during peak hours, now it went down by 25 percent.

He said most companies in the zone adopted reduced working days, and slashed shifts from three to two in a 24 hour cycle.

Unlike in the MEZ, where most companies are supplying electronic products to the United States, shipbuilding companies in Balamban are still booked with orders, Lim said.

 According to Lim, the company noted an increasing power supply demand in Balamban West Cebu Industrial Park (WCIP), as shipyards are booked with orders until 2013.

Meanwhile, Lim said in Cebu there is an alarming power supply shortage because the power capacity today is much less than a year ago.

 “We do have problem in power supply despite the reduction of consumption,” Lim said.

 He mentioned that the National Power Corporation (Napocor), which is the largest power supplier, is “being run to destruction.”

“Napocor has no incentive to keep it in good shape? They [Napocor] are made to sell at no cost,” he said.

 Earlier, VECO is going to implore support from the business sector to rescue Cebu from further power shortage problem, until the newly developed power plant in Toledo City will go on commercial operations in 2010.

Jimmy Aboitiz, VECO chief operating officer (COO) announced that the company, in close coordination with the Department of Energy and the Cebu Provincial Government, will ask the Cebu business players, through the Cebu Chamber of Commerce and Industry (CCCI) to cooperatively use their generation power during peak hours, to avoid power shortages, or brown outs within the VECO franchise area.

 Aboitiz admitted that Cebu is facing power shortage problem, although described it a minimal and short term dilemma, as it will certainly be solved after the Cebu Energy Development Corporation, of which Aboitiz Power Corporation (AP) is part of the consortium, will start operation by March 2010.

If big power consumers like shopping malls, SM City Cebu, Ayala Center Cebu, among others will officially cooperate in this program, VECO’s load will be reduced by at least 40 megawatt, during peak hours.

 The total load of VECO is over 300 megawatt (MG), Aboitiz said the company is seeing an average of 10 MG to 20 MG shortage of power in peak hours. This program if properly supported by industries, will aid the looming power shortage problem this year, and the first quarter of 2010.