House panel confused over energy crisis report

MANILA, Philippines - Like many senators, members of the House committee on energy appear not convinced of a power shortage in the summer months of next year, citing conflicting data released by power officials.

Committee members said the Department of Energy (DOE) and the National Grid Corp. of the Philippines (NGCP) have been giving them conflicting data on the power situation in mid-2015.

The committee has been tasked to look into President Aquino’s request for special authority to rent generators from foreign suppliers to boost supply in Luzon.

Renting generators is expected to cost consumers and taxpayers up to P12 billion for a minimum contract period of two years.

They said that while the DOE is projecting a shortage, the NGCP is expecting sufficient supply.

Committee chairman Mindoro Rep. Reynaldo Umali has asked the DOE and NGCP to review their data.

“We need a common set of assumptions in looking at the situation,” he said.

Isabela Rep. Rodolfo Albano III, one of five minority bloc representatives in the committee, has said based on the NGCP report, there would be enough supply.

He said electricity would be sufficient even during the summer months of March to June next year, the period Energy Secretary Jericho Petilla claimed there would be a shortage of up to 800 megawatts (MW).

He said NGCP knows what it has reported, since the law designates it as “system operator” of the entire power generation-transmission-distribution network.

The NGCP report shows that available power for Luzon for next year would range from 8,839 MW in January to 10,946 MW in December.

The forecast peak demand would be from 7,760 MW in January to 8,410 MW next December.

There would be “system gross reserve” ranging from 666 MW in May, which is the lowest, to 2,764 MW in December, the highest.

Reserve in March, April and June is forecast at 717, 766 and 997 MW, respectively.

The report shows no indication of a shortfall for any month even if it has already taken into consideration the effects of the extended El Niño dry season phenomenon as well as maintenance shutdown of power plants.

NGCP is the entity that runs the country’s power transmission facilities on a 25-year lease. The Chinese government owns some 40 percent of the firm, with 60 percent belonging to Filipino investors.

If there would be a real shortage, lawmakers would prefer tapping local power sources such as generators in malls, factories and other big establishments than foreign suppliers.

According to Energy Regulatory Commission executive director Francis Juan, big establishments have up to 3,000 MW of standby generating capacity.     

‘Shocked’

Meanwhile in Zamboanga City, managers of different electric cooperatives have expressed concern over the possible impact of the Bangsamoro Basic Law (BBL) on the supply and distribution of power in the region and in other parts of the country.

“Everybody was shocked because we did not expect that this will be the situation on power,” George Ledesma, general manager of the Zamboanga City Electric Cooperative (ZAMCELCO), said referring to what they believed would be the vast powers the Bangsamoro would exercise over the power industry.

He said under the proposed BBL, the Bangsamoro shall have exclusive powers over inland waters, including lakes.

Ledesma said 50 percent of power supply of the entire Mindanao comes from hydropower plant sourcing water from Lake Lanao, which is under the proposed Bangsamoro territory.

He said a BBL provision states that the Bangsamoro government shall ensure that the utilization of water from Lake Lanao shall primarily be for the benefit of the people in the Bangsamoro.

“So just imagine if the priority will be the communities of the Bangsamoro and we’ll be getting less from the hydropower plant, so definitely our rate will go up because you’ll be losing another source of supply,” Ledesma said.

He said concerned groups should actively participate in the review of the BBL before Congress approves it.

“We started the ball rolling to inform the public and hopefully we can pick up steam to roll it,” Ledesma said. –with Roel Pareño