By Joann Santiago-Villanueva
MANILA – Officials of Manila Electric Company (Meralco) on Tuesday underscored the need to secure power supply ahead of a very strong El Niño event, citing strengthened coordination with the government and customers to address potential issues.
In a briefing on Tuesday, Meralco vice president and corporate communications head Joe Zaldarriaga said the dry spell is expected to drive up demand, which will also impact electricity prices.
“There are factors beyond our control. If the demand for energy is too high, as we saw during previous summer months, there is pressure for prices to go up, specifically in the wholesale electricity spot market. That is why it’s very important for us at Meralco to secure the best supply or sourcing possible, and to find ways to lower the cost of electricity based on the situation on the ground,” he said.
Earlier, the distribution utility announced a PHP0.3191 per kilowatt hour (kWH) rate hike for October, bringing the overall rate to PHP15.0615/kWh from PHP14.7424/kWh the previous month.
The adjustment was primarily driven by a PHP0.4973/kWh increase in the generation charge, coupled with a PHP3.5167/kWh surge in rates from the Wholesale Electricity Spot Market.
However, these hikes were partially offset by lower prices from power supply agreements and reduced transmission charges from the National Grid Corporation of the Philippines.
The October rate does not yet reflect the recently mandated PHP2.64 billion refund from the Energy Regulatory Commission (ERC), which is scheduled to be implemented over a six-month period.
The refund will be implemented by November, as Meralco has yet to receive an official copy of the ERC order, according to Larry Fernandez, Meralco vice president and Utility Economics head.
Meanwhile, Fernandez said Meralco is well-prepared for peak demand, particularly during next year’s dry season.
He highlighted a 200-megawatt (MW) baseload contract secured early this year, currently awaiting ERC approval, and an additional 250MW from Terra Solar Philippines Inc. This solar capacity will supplement the existing 600MW already supplied by an affiliate of Meralco PowerGen Corporation.
“Given those two developments, we’re expecting an additional capacity of 450MW for the Meralco franchise area,” he said.
Zaldarriaga said Meralco is actively coordinating with the government and large commercial customers to implement several measures that will lessen the load of Meralco, such as the interruptible load program (ILP).
Under ILP, large power consumers that have their own power sources, such as generators, may unload from the main grid and service their own requirements to help lessen demand on the grid and prevent any power interruptions.
Fernandez said the ILP proved crucial for the Luzon grid in May and “was able to help millions of households avoid rotating brownouts because (the capacities) were triggered.”
“We’ll continue to do that. Usually, in coordination with the DOE (Department of Energy), we’ll have a roadshow so that the DOE can also invite these companies to join the ILP,” he added. (PNA)
