‘Luzon power shortage alert no cause for alarm’

MANILA, Philippines — The Department of Energy (DOE) downplayed yesterday the yellow or power shortage alert status raised in the Luzon grid, saying it should not be a cause for alarm.

DOE Assistant Secretary Redentor Delola said the yellow alert was due to the unscheduled shutdown of some power plants.

Delola assured the public that the Luzon grid has enough power supply during the summer months.

“We have sufficient supply,” Delola said.

A yellow alert means there were not enough reserves to cover the largest running generating unit, but does not necessarily lead to power outages.

The National Grid Corp. of the Philippines (NGCP) placed the Luzon grid on yellow alert from 10 a.m. to 11 a.m. and 1 p.m. to 4 p.m. yesterday.

This was due to insufficient operating reserve brought about by the high demand and the forced outage of some power plants, according to the NGCP.

Unit 3 of Pagbilao coal plant (420 MW) went on forced outage yesterday. Other plants still on shutdown are Masinloc 2 (344 MW), Pagbilao 1 (382 MW), SLTEC 1 (150 MW) and Malaya 2 (350 MW).

Plants with de-rated capacity are Calaca 2 at 200 MW (from 300 MW) and SLPGC 2 at 100 MW (from 150 MW).

Party-list group Bayan Muna expressed alarm over the announcement by the DOE of a yellow or power shortage alert that could result in blackouts.

“This is a cause for concern because of the timing of the apparent concerted outages of these power generators. This must be looked into and consumers should be more vigilant,” Bayan Muna chairman Neri Colmenares said.

He expressed hope that generators and distributors would not use the shutdowns to petition for a rate increase.

Last month, the DOE said it projects stable power supply during the summer months despite the El Niño phenomenon because of additional capacities.

Luzon, in particular, will have an additional 571.2 MW until July from the 150-MW coal fired power plant in Limay, Bataan; 5-MW biomass plant in Isabela; 300-MW coal-fired power plant in Masinloc, Zambales; 1.2-MW FQBG biomass plant, and 115-MW solar plant in Concepcion, Tarlac.

These additional capacities will augment the Luzon power supply when two big power plants undergo maintenance until April.

From April 5 to June 13, reserve will be below the required dispatchable level, which would lead to a yellow alert status on the grid, based on the DOE’s projection.

The Luzon grid is expected to reach peak demand of 11,403 MW in May.

To ensure enough supply during the midterm elections, the DOE has ordered other power generators not to conduct preventive maintenance schedules a week before and after May 13. 

Senate probe

The Senate committee on energy will conduct today an inquiry into the status of the mandated initial public offering (IPO) of the NGCP and its alleged overcharging of transmission charges to consumers.

The probe is part of the review of Republic Act 9511, which granted the NGCP the franchise to engage in power transmission, and checking on the performance of the Energy Regulatory Commission (ERC) in regulating the industry.

Sen. Sherwin Gatchalian, chairman of the panel, said under RA 9511, the NGCP is supposed to offer to the public 20 percent of the company, but the implementation of the IPO has been delayed.

“The NGCP has reportedly declared dividends to its owners amounting to P180 billion in the past 10 years but under the franchise, the public must also have a share in the 20 percent ownership,” Gatchalian said in an interview.

But more than the share of dividends to prospective public shareholders, the listing of shares would ensure accountability for the major shareholders given the critical nature of the business, he said.

The NGCP sought a one-year delay in making the IPO to allow it time to comply.

The National Transmission Corp. opposed the deferment, saying the NGCP has failed to prove that the market conditions for the IPO were not favorable.

Gatchalian said the committee would ask the ERC to explain its apparent failure to conduct a review on the NGCP’s transmission charges imposed on the public.

He said based on initial calculations, the public has been overcharged by at least 11 centavos per kilowatt-hour.

Under its charter, the ERC is mandated to conduct a review of power rates every five years. The last review is three years overdue, Gatchalian said.  – With Jess Diaz, Paolo Romero