Wednesday, January 9, 2013

Power outages to hit Zamboanga City

Business World Online
Posted on January 09, 2013 11:58:00 PM


ZAMBOANGA CITY -- This city is expected to suffer from at least three hours of daily rotational outages as state-run National Power Corp. (Napocor) reduces supply.

 Elbert C. Atilano, president of the Zamboanga City Electric Cooperative (Zamcelco), told BusinessWorld that Napocor, through the National Grid of Corp. of the Philippines (NGCP) has announced power supply in this city would be reduced by 10 megawatts (MW).

Mr. Atilano said the adjustment is expected to take effect “anytime soon.”

Officials of the NGCP and Napocor were not immediately available for comment but based on the daily NGCP bulletin, Mindanao had a deficiency of 189 MW yesterday. The island requires at least 1,300 MW during weekdays.

The scaled down power supply was made after Napocor decided to rehabilitate its Agus hydropower plants in Lanao del Norte. Details of the rehabilitation were, however, unavailable as of Wednesday.

At present, Napocor could provide only 58 MW to the city, 22 MW short of the 80-MW demand. The new reduction would mean that Napocor could provide only 48 MW in the coming days.

Mr. Atilano said the power supply reduction would cover all electric cooperatives in Mindanao, and not only this city.

Zamcelco for its part has an existing contract with Aboitiz-owned Therma Marine, Inc., which supplies 18 MW of the 22 MW demand gap. It is also poised to sign a contract with the Iligan Diesel Power Plant of the Alcantara Group to provide this city with 25 MW.

In a separate interview, Pedro Rufo N. Soliven, president of the Zamboanga Chamber of Commerce and Industry Foundation, Inc., said the chamber expects the situation to get worse when the sardines manufacturers resume full operations within this quarter.

At present, commercial fishing of sardines has been banned in Sulu Sea and parts of the Visayas Sea to give way for the fish spawning period.

Mr. Soliven criticized the power reduction as part of the “plan” of the National Government to force consumers in Mindanao to buy power supply from private corporations at a higher cost, and to privatize the Agus and Pulangi power complexes, which are the sources of cheap power in Mindanao.

The government is planning to privatize the two hydropower complexes, pursuant to the Electric Power Industry Reform Act. This is being opposed by civil society groups in Mindanao.

The Mindanao Development Authority has chided the Power Sector Assets and Liabilities Management Corp. for justifying the sale by claiming the two plants are losing money. Business leaders here previously noted they were made to understand that the sale was necessary to pay the debt of Napocor of at least P900 billion. -- Darwin T. Wee    source

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