Contribution
Power Crisis
It is now almost five (5) months since the Energy Regulatory Commission (ERC) ordered PECO to "connect to the Cebu-Negros-Panay Grid at the soonest in order to avoid in the future a recurrence of this electric crisis brought about by the isolation of PECO from the said grid."
On March 10, 2006, the ERC reiterated its order for PECO to reconnect to the grid and the Regional Development Council (RDC Region 6) also passed a resolution asking both PECO and the Iloilo City government to implement the ERC order.
Mayor Jerry Trenas is again crying about the impending brownouts in Iloilo City by the months of May to June because the Panay Power Corp. (PPC) - Mirant will reportedly be short of supply by about 3 megawatts (MW). For consumers, the more damaging impact is the drastic increase in power rates with about ten percent (10%) increase in electricity bills for the month of April. This will continue to increase because PPC-Mirant is fully dependent on diesel power plants for electricity generation.
Power Barge
The move to transfer to Iloilo City the 32 MW Power Barge 101 to address the looming 2-months 3 MW deficiency is ridiculous. Electricity from NPC power barges could be more expensive than PPC-Mirant's supply while there is available much cheaper geothermal energy in the grid.
The press quotes Mayor Trenas promoting the establishment of a 100 MW coal-fired power plant in Iloilo. However, who will pay for the excess electricity if ever the coal plant is established considering that the base-load demand of Iloilo City is only about 30 MW? The consumers will surely carry the brunt of the extra 70 MW capacity of the coal power plant.
The base-load demand of Panay and Guimaras islands combined, minus the demand of Iloilo City, is only 40 MW that is amply supplied by the 100 MW Negros-Panay submarine cable. This cable will be up-rated to 200 MW next year.
That is why the ERC ordered PECO to reconnect to the grid because there is a cheaper supply of electricity even for only the base-load demand of the city. Reconnection with the grid will greatly relieve consumers from the excessive costs with electricity rate in the grid at only P3.365 per kwh while PPC-Mirant's rate is P6.491 per kwh.
Transparency and Political Will
Consumers should know why PECO is not implementing the ERC order and why does the local government seem to tolerate this open defiance of a regulatory body's lawful order.
Iloilo City cannot grow economically if we have the most expensive and unstable supply of electricity in the region. If the Mayor were really for the interest and welfare of Iloilo City, then it would be best that he make sure PECO follow the order of ERC immediately.
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Co-Convenor
Responsible Ilonggos for Sustainable Energy
Tel.337-9773