Looming power crisis, no direct impact on Visayas

CEBU, Philippines - Although a looming power crisis threatens the country in 2015, the regional Department of Energy said this crisis will not have a direct impact on the Visayas region.

DOE Visayas Director Engineer Atonio Labios said looking at the projection on the region's power supply, the Visayas may not directly experience the energy shortage next year.

The agency's Electric Power Industry Management Bureau has made a forecast on the energy situation, identifying the existing indicative capacities and the need for additional power, the director said.

But despite this, he added that a shortage next year is still possible, although saying Luzon will be the most affected by the foreseen rotating brownouts in the summer months.

"Despite that, dunay gamay nga projection nga there is still a shortage sa 2015," Labios told The FREEMAN in an interview. 

Power emergency

Energy Secretary Jericho Petilla has suggested to President Benigno Aquino III to declare a state of emergency in the power sector to prevent the looming deficiency of power supply in early 2015.

The DOE has appealed the Congress to grant Aquino the emergency powers to address the impending power supply shortfall.

If in case, the emergency is declared, Labios explained the President will have the authority to set orders on the use of electricity through contracting new power plants, renting modular generator sets and using of bunker-powered facilities. A bunker is a large container that stores fuel.

"Kini man gud siya dunay projection nga there is imminent shortage so kinahanglan nga molihok ta ani kay kung di ta mo-recommend magka-shortage gyod ta," the energy official said, emphasizing the dire need for DOE to urge Aquino to declare state of emergency.

The DOE's projection is based on the need to have additional generating capacities and that decision makers and investors as well must be told on what the sector lacks. 

Solving power problems

For its part, the Philippine Chamber of Commerce and Industry revealed they have been telling suggestions to the Energy Department on how to solve the power crises and "reduce the tariff of power to attract more investments, but these all fell into the deaf ears of DOE."

In the past, Labios already said the power generation sector needs more investments to generate more power plants. This as the demand for power has been increasing every year due to the rise of economic activities.  

In a statement sent to The FREEMAN, PCCI, through its Area Vice President for Visayas Jose Ng, said the country's national leaders -- the DOE in particular -- should consider ideas from different sectors and use these to create a clear and measurable policy objectives on power supply and tariff.

With that, the government can then identify whether or not an emergency should really exist.

The chamber noted, "Several suggestions and proposals have been submitted by various consumer groups and business sectors on how to effectively address power challenges on supply and competitive tariff."

DOE's Labios explained emergency powers will allow the government to fast track the building of back-up power system to avoid the power crisis, saying it is only the solution -- at least for now -- the DOE believes to be effective.

"Sa pagkakaron, yes," Labios said when asked if emergency declaration is the government's only option. "Ang logic man gud diha kinahanglan diha-diha ma-put up ang Gensets (generator sets). And it will take three to 5 years to complete the plant."

Since the requirement is urgent, the energy sector needs these modular generator sets to create additional power supplies.

The Electric Power Industry Reform Act bars the government from putting up its own power plant and he said, renting modular power plants is more practical as these are easy to set up.

Section 71 of the same law says, "the President, upon determination of an imminent shortage of supply of electricity, may ask Congress for authority through a joint resolution, to establish additional generating capacity under such terms and conditions as it may approve."

Ng expressed that the chamber is not totally against the DOE's proposal to give President Aquino emergency powers, but they just want the department to present in a transparent way the real current power situation of the nation.

He further emphasized the need for a concrete plan to address the challenges faced by the energy sector.

This is because the PCCI stressed the declaration of state of emergency must assume that a well laid out plan is ready before it happens.

Without the concrete measure, the Philippine Chamber said the country will continue to face energy issues every year.

In addition, Ng said it's vital to note that rotating brownouts and other power problems are bad for the business sector, investments, employment and the economy in general.

While some militant groups warned that if Aquino is granted emergency powers to avert the power shortage, consumers must brace for higher electricity rates. But Labios said otherwise.

`He said he does not see any indication for power costs to hike, noting any increase always needs the approval from the Energy Regulatory Commission.

He added: "Di man na siya arbitrary lang. Kinahanglan pa man i-establish sa ERC unsay maka-increase sa price."

The business community has called on the government to explain the real power situation so the industries and consumers will become aware on how it affects them. (FREEMAN)