Business World Online
Posted on June 15, 2012 07:24:40 PM
THE ENERGY department warned electricity rates might go up in the coming month as shutdowns of power plants last week could put pressure on prices.
Prices could also likewise increase in August with the planned maintenance on the Malampaya natural gas project.
"When there are shutdowns there are always the possibility of increase but the most recent shutdown of Malampaya will not have much impact, maybe a very slight increase because it only for a day and a half and there was low demand," said Energy Secretary Jose Rene D. Almendras in a press briefing Friday.
The Malampaya natural gas project in Palawan unexpectedly shut down last week due to repairs on one of its gas turbines. This was coupled with the unforeseen temporary closure of the one of the units of the Sual power plant.
Parts of Metro Manila experienced rotating power outages as system operator National Grid Corporation of the Philippines (NGCP) and distribution utility Manila Electric Co. (Meralco) had to implement manual load dropping due to the shutdowns.
Affected areas were portions of Balintawak, Sta. Mesa, Sampaloc, Novaliches and Bulacan.
Malampaya provides natural gas to fire the 500-megawatt (MW) San Lorenzo power plant, the 1,000-MW Sta. Rita power plant and the 1,200-MW Ilijan power plant.
However, the Energy department still expects further price increases by August.
"Prices could spike when Malampaya is shut down for preventive maintenance in August. While we expect demand to be low, there is tight supply of cheaper natural gas for the plant's to run," said Mr. Almendras.
He added the department has asked power plants that run on natural gas from Malampaya to fill up their fuel storage to be able to use cheaper gas for a longer period.
When Malampaya is shut down in August, power plants will be using more expensive fuel like bunker fuel which can impact electricity rates.
But if electricity rates are seen to go up, the Energy department said fuel prices may drop.
Fuel prices have rolled back 13 times since the start of the year compared to 10 increases. -- Emilia Narni J. David source
"When there are shutdowns there are always the possibility of increase but the most recent shutdown of Malampaya will not have much impact, maybe a very slight increase because it only for a day and a half and there was low demand," said Energy Secretary Jose Rene D. Almendras in a press briefing Friday.
The Malampaya natural gas project in Palawan unexpectedly shut down last week due to repairs on one of its gas turbines. This was coupled with the unforeseen temporary closure of the one of the units of the Sual power plant.
Parts of Metro Manila experienced rotating power outages as system operator National Grid Corporation of the Philippines (NGCP) and distribution utility Manila Electric Co. (Meralco) had to implement manual load dropping due to the shutdowns.
Affected areas were portions of Balintawak, Sta. Mesa, Sampaloc, Novaliches and Bulacan.
Malampaya provides natural gas to fire the 500-megawatt (MW) San Lorenzo power plant, the 1,000-MW Sta. Rita power plant and the 1,200-MW Ilijan power plant.
However, the Energy department still expects further price increases by August.
"Prices could spike when Malampaya is shut down for preventive maintenance in August. While we expect demand to be low, there is tight supply of cheaper natural gas for the plant's to run," said Mr. Almendras.
He added the department has asked power plants that run on natural gas from Malampaya to fill up their fuel storage to be able to use cheaper gas for a longer period.
When Malampaya is shut down in August, power plants will be using more expensive fuel like bunker fuel which can impact electricity rates.
But if electricity rates are seen to go up, the Energy department said fuel prices may drop.
Fuel prices have rolled back 13 times since the start of the year compared to 10 increases. -- Emilia Narni J. David source
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