Mindanao gets more expensive electricity

The Energy Department will issue a directive next week that will free up 300 megawatts of power supply to plug the deficit in Mindanao but consumers will have to brace for higher power rates, a government official said Wednesday.

Energy Undersecretary Josefina Asirit told reporters the circular, set to be signed by Energy Secretary Jose Rene Almendras next week, would spell out the responsibilities of the government and energy stakeholders. Mindanao continues to suffer two- to four-hour brownouts due to the power deficit.

“You can say that the power situation in Mindanao, the loss of power in certain areas in Mindanao is manageable… The circular is just a stop-gap measure. Again, we have to come up with the long-term solutions for Mindanao. Mindanao needs base load plants,” Asirit said.

She said the additional capacity of 146 MW would come from the two power barges owned by Aboitiz Power Corp., 10 MW from the uncontracted capacity of Steag State Power’s coal plant in Misamis Oriental, 47 MW from the Agus hydropower plant and 150 MW from the reduction in the reserve requirement of the Mindanao grid.

Asirit said an additional 149 MW could be tapped from power generators of distribution utilities, electricity cooperatives, industries and commercial establishments in Mindanao.

“The tightness in supply can be addressed with the more expensive capacities,” Asirit said, noting that the power barges charge around P11 per kilowatt-hour compared with the current Mindanao rate of around P3.50 per kWh.

She said the P11 per kWh rate offered by Aboitiz Power would be blended with the rate offered by National Power Corp.’s power plants of around P3 per kWh.

“When you blend the rates, the increase will be not as much,” Asirit said.

In Luzon, Philippine Electricity Market Corp. warned that power rates at the Wholesale Electricity Spot Market would go up in the dry season due to higher demand.

Napocor’s rates will also go up by P0.30 per kWh due to the dry season. Napocor will rely on power plants that feed on more expensive fossil fuels. –Alena Mae S. Flores, Manila Standard Today