Business World Online
Posted on November 05, 2013 09:36:48 PM
SEMICONDUCTORS and Electronics Industries of the Philippines, Inc. (SEIPI) yesterday asked the Department of Energy (DoE) to not charge higher power rates this month with the scheduled maintenance of the Malampaya gas field.
"We in SEIPI would like to plead on their [SEIPI members’] behalf for the Department of Energy (DoE) and Energy Regulatory Commission (ERC) to exert efforts to prevent higher electricity prices and protect them from the effects that this maintenance shutdown will cause," the industry group said in the statement.
The industry group noted that while many of its members are contestable customers who would thus be shielded from a price increase, "our non-contestable members ... will be severely affected by this shutdown."
Under the DoE’s retail competition and open access scheme, contestable customers -- those whose average monthly peak consumption is at least 1 megawatt (MW) -- can choose their own power suppliers, which in turn can provide tailored supply packages based on customers’ consumption and preference.
"We recommend that adjustment mechanisms such as the GRAM (generation rate adjustment mechanism) not be collected for this period and that the maintenance proceed as swiftly as possible and is completed before the prescribed 30-day period. If the time frame cannot be shortened, the DoE and the ERC should ensure that there will be a cap on the price increase brought about by this event," SEIPI said.
Ricardo V. Buencamino, Manila Electric Co. (Meralco) senior executive vice-president and head of networks, said last week that electricity prices are expected to go up during the scheduled maintenance of the Malampaya gas-to-power project from Nov. 9 to Dec. 8.
The Malampaya gas field, in waters northwest of Palawan, fuels three gas-fed plants in Batangas, where Meralco sources a portion of its customers’ power requirements.
The power plants -- the 1,200-megawatt Ilijan plant; the 1,000-MW Sta. Rita plant; and the 500-MW San Lorenzo plant -- will be fueled by oil instead of natural gas throughout the maintenance period.
"The generation cost could increase to the vicinity of P1 per kilowatt-hour to even more than P2/kWh come November, then that should be seen in December billing month," Mr. Buencamino said.
DoE officials were not immediately available for comment.
For his part, ERC Executive Director Francis Saturnino C. Juan yesterday said via text message: "Distribution utilities (DUs) adjust their generation charges monthly. If the affected DUs’ generation cost will increase because of the Malampaya shutdown, it will be reflected in their generation charge calculation."
"Generation charge is a pass-through cost for the DUs. If they [DUs] will be unable to fully recover this cost through their generation charge, they may default in their obligations to their suppliers, unless they can cover the shortfall in the meantime," Mr. Juan added.
SEIPI officials were not immediately available for comment.
Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga.
Energy Secretary Carlos Jericho L. Petilla earlier said the government does not expect any other shutdown throughout the one-month scheduled maintenance of the Malampaya facility. -- Daryll Edisonn D. Saclag source
The industry group noted that while many of its members are contestable customers who would thus be shielded from a price increase, "our non-contestable members ... will be severely affected by this shutdown."
Under the DoE’s retail competition and open access scheme, contestable customers -- those whose average monthly peak consumption is at least 1 megawatt (MW) -- can choose their own power suppliers, which in turn can provide tailored supply packages based on customers’ consumption and preference.
"We recommend that adjustment mechanisms such as the GRAM (generation rate adjustment mechanism) not be collected for this period and that the maintenance proceed as swiftly as possible and is completed before the prescribed 30-day period. If the time frame cannot be shortened, the DoE and the ERC should ensure that there will be a cap on the price increase brought about by this event," SEIPI said.
Ricardo V. Buencamino, Manila Electric Co. (Meralco) senior executive vice-president and head of networks, said last week that electricity prices are expected to go up during the scheduled maintenance of the Malampaya gas-to-power project from Nov. 9 to Dec. 8.
The Malampaya gas field, in waters northwest of Palawan, fuels three gas-fed plants in Batangas, where Meralco sources a portion of its customers’ power requirements.
The power plants -- the 1,200-megawatt Ilijan plant; the 1,000-MW Sta. Rita plant; and the 500-MW San Lorenzo plant -- will be fueled by oil instead of natural gas throughout the maintenance period.
"The generation cost could increase to the vicinity of P1 per kilowatt-hour to even more than P2/kWh come November, then that should be seen in December billing month," Mr. Buencamino said.
DoE officials were not immediately available for comment.
For his part, ERC Executive Director Francis Saturnino C. Juan yesterday said via text message: "Distribution utilities (DUs) adjust their generation charges monthly. If the affected DUs’ generation cost will increase because of the Malampaya shutdown, it will be reflected in their generation charge calculation."
"Generation charge is a pass-through cost for the DUs. If they [DUs] will be unable to fully recover this cost through their generation charge, they may default in their obligations to their suppliers, unless they can cover the shortfall in the meantime," Mr. Juan added.
SEIPI officials were not immediately available for comment.
Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga.
Energy Secretary Carlos Jericho L. Petilla earlier said the government does not expect any other shutdown throughout the one-month scheduled maintenance of the Malampaya facility. -- Daryll Edisonn D. Saclag source
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