Power supply assured amid Meralco’s threat

Business World Online

Posted on February 06, 2014 10:34:39 PM

ELECTRICITY SUPPLY in the coming months will be sufficient, a Malacañang official assured yesterday, following an earlier threat of power outages from the Manila Electric Co. (Meralco).

“The government is taking necessary steps to ensure continuity of power supply during the summer season,” Communications Secretary Herminio B. Coloma, Jr. said yesterday.

“According to Energy Secretary (Carlos Jericho L.) Petilla, the government is prepared to run the Malaya thermal power plant up to 70 days to boost supply during the summer months, when demand is expected to rise especially in Luzon,” he added.

Mr. Coloma said the Department of Energy has advised power producers to undertake preventive and regular maintenance as demand is expected to surge starting next month.

Meralco on Tuesday told the Supreme Court (SC) that disallowing the P4.15-per-kilowatt-hour rate hike would have a substantial economic impact.

“Dire consequences... will be brought about by rotating blackouts, not to mention the likely loss of investors’ confidence due to perceived instability of our laws and regulatory rules,” Meralco lawyer Victor P. Lazatin said.

Mr. Petilla, for his part, also acknowledged that “historically, we have tight supply during summer months.” “We will still have tight supply next year, during summer, if power plants don’t come in,” Mr. Petilla said on the sidelines of a forum in Manila Hotel.

He said the tight supply will only be addressed if the plants in the pipeline will be operational.

He also appealed to consumers to be more energy efficient, and conserve electricity. “At this point that we have tight supply, we are appealing to the consumers to be more energy efficient. If possible, they lessen their consumption to avoid shortages,” Mr. Petilla said.

The SC earlier issued a temporary restraining order preventing Meralco to implement its rate hike that was earlier approved by the Energy Regulatory Commission (ERC).

Meralco has 5.3 million customers in its franchise area that covers 31 cities and 80 municipalities in Metro Manila, the entire Bulacan, Rizal and Cavite; and parts of Laguna, Quezon, Batangas and Pampanga.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. -- Mikhail Franz E. Flores   source