BUSINESS MIRROR
THE Visayan Electric Co. (Veco) met Department of Energy officials on Wednesday in the hope of convincing government of contracting more power to Metro Cebu in the medium term to avoid brownouts to the biggest economic center in central Philippines.
Concerns on possible shortage of power in Metro Cebu were raised after the National Power Corp.-Power Sector Assets and Liabilities Management Corp. (NPC-PSALM) only offered to deliver to Veco 75 megawatts (MW), as the two parties start negotiations for the extension of its power supply agreement.
The proposal is far lower than the present 240-MW contract obligation to the power distributor.
The power-supply contract between Veco and NPC-Psalm expires on Dec. 25.
Veco’s franchise area consumes a peak demand of 380 MW with a maximum of 240 MW sourced from NPC-PSalm and a combined 105 MW from Cebu Energy Development Corp. and Toledo Power Corp. and the peaking requirement of 30 to 60 MW is sourced from Cebu Private Power Corp.
Veco said it is the largest customer in the whole Visayas grid of NPC.
“More than half of Veco’s power requirements are still sourced from NPC.
These contracts with other IPPs do not replace NPC capacity and are not meant to replace NPC capacity at all,” a Veco statement read.
“While it [Veco] has bilateral contracts with three independent power producers [IPPs], this is not enough to cover the ever increasing needs of its franchise area.”
Veco explained that at present, its franchise area absorbs no less than 60 percent during what is already a regular occurrence of rotational brownouts in the Visayas grid.
“We believe that a fair proportionate allocation of the NPC capacity available for contract extension for Veco should be no less than 60 percent also,” the statement sent by Veco communications manager Ethel Natera read.
“Otherwise, the possibility of massive power shortages in 2011 of up to 100 MW within Veco’s franchise area cannot be discounted.
This will result to more frequent and longer rotating outages and brownouts.”
Veco said that NPC-PSalm should supply Veco at least 155 MW.
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