DoE chief warns of power lack

Business World Online
Posted on July 21, 2014 11:07:49 PM
By Claire-Ann C. Feliciano, Senior Reporter

THE GOVERNMENT needs to contract additional power generating capacity to address a supply deficiency next year, the Energy chief yesterday said.

The expected power shortage of around 200 megawatts (MW) by May 2015, however, does not constitute a “full-blown crisis,” Energy Secretary Carlos Jericho L. Petilla said.

“Our outlook shows that we have enough power except for May. The May deficit is only at 200 MW and on certain days only,” he said in a text message.

Mr. Petilla has asked President Benigno S.C. Aquino III to “consider” invoking Section 71, or the power crisis provision, of the Electric Power Industry Reform Act of 2001.

“Upon the determination by the President of the Philippines of an imminent shortage of the supply of electricity, Congress may authorize, through a joint resolution, the establishment of additional generating capacity under such terms and conditions as it may approve,” Section 71 states.

Mr. Petilla said that if Mr. Aquino does order Congress to do so, the “first order of the day ... is to look into various options of contracting additional capacities,” noting that the government cannot build a power plant given time constraints.

“The form that I am looking at is leasing generating capacities from two to five years. Those capacities will only run when needed and will not be traded in the Wholesale Electricity Spot Market,” he explained.

“Hence, the additional capacity will only help the grid and will not compete with the private sector,” Mr. Petilla added.

The Energy chief further said he issued the recommendation last month to give the government time to set a solution.

“We need the additional capacity. If the private sector can guarantee this for 2015, then we don’t have to invoke anything,” he said.

“But if there’s no other way, why risk having brownouts next year when you can do something now?”

Malacañang yesterday confirmed that Mr. Petilla had made the recommendation but said it “has yet to be discussed in full with the President.”

“Secretary Petilla recommended that we declare an emergency so that we can anticipate and look at various options as to make sure we are able to satisfy the supply concerns of our countrymen,” Palace Spokesman Edwin Lacierda said.

Both Mr. Petilla and Mr. Lacierda clarified that this move was not related to the brownouts that arose after typhoon Glenda damaged transmission and distribution facilities in Luzon last week.   source