ERC OKs ‘interruptible loads’ payment

Manila Bulletin  
By Myrna M. Velasco 
Published: June 2, 2013 
The Energy Regulatory Commission (ERC) has adjusted upwards the compensation for prospective interruptible load program (ILP) participants to encourage entities with embedded facilities to “de-load” at certain hours and channel their capacity to the grid.
According to ERC Chairperson Zenaida G. Cruz-Ducut, the amendment to the ILP rules “is designed to entice more participation in the ILP in order for the program to be more responsive in addressing the power shortage in Mindanao.”
The approved adjustments in the ILP pass-on rate had been anchored on the application of Davao Light and Power Company (DLPC), which has also been the anointed benchmark for compensation on ‘capacity de-loading’ in the grid.
Chiefly, the power industry regulator approved the proposed fuel efficiency rate of P0.34 per kilowatt hour as well as average cost of maintenance of P23,548.00 per month to be integrated in the ILP rates.
These will be on top of the actual cost recoveries on fuel that will be utilized in the generating the capacity that ILP participants will offer to the grid.
The cost reference on fuel supply would be the average price of diesel of major oil firms Petron Corporation, Pilipinas Shell or Chevron “as of the end of the previous month in the city or municipality where the participating customer is located.”
The previous rate in the ILP program was deemed not viable because the cost of operating the generating facilities may even be higher than the offered compensation, thus, prompting stakeholders to scour for a viable solution to that dilemma.
“The ILP Rules were crafted and promulgated by the ERC to help address the power supply deficit in certain parts of the country,” the ERC stressed.
Under the ILP program, a distribution utility and a participating customer can enter into an agreement wherein the latter may be requested by the DU to “de-load” and will just be compensated on its supply volume funneled to the grid.
As planned, the ILP program will be a precursor measure to ease the worsening power supply shortages in Mindanao. It also serves as a prelude to the much-anticipated introduction later this year of the Interim Mindanao Electricity Market (IMEM) in the area.
Based on the estimates of the Department of Energy, supply in Mindanao grid could by shored up by 150 megawatts or higher if some embedded facilities will voluntarily de-load on their capacities.   source