Business World Online
Posted on October 09, 2014 10:58:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
THE DEPARTMENT of Energy (DoE) is preparing a system of incentives and penalties to push energy conservation among consumers, one of the measures eyed to address the looming power shortage next year.
DoE Department Circular 2014-08-0014, published in two newspapers yesterday, called on electricity-consuming sectors to implement demand-side management programs and energy conservation measures.
Power shortage is expected to hit Luzon next year, with latest figures from the DoE showing that additional 900 megawatts (MW) -- from 800 MW estimated previously -- will be needed to plug the deficit and meet the required reserves besides.
Mylene C. Capongcol, director of the DoE’s Electric Power Industry Management Bureau (EPIMB), said via phone yesterday: “Encouraging demand-side management and energy conservation measures will help mitigate the power problem next summer.”
The circular enjoined all electricity consumers -- residential, industrial and commercial establishments and public facilities -- “to implement demand-side management programs and other energy conservation measures to reduce the country’s demand for supply of electricity.”
The agency, however, noted that vital infrastructure like hospitals and airports may maintain regular consumption.
The DoE’s Energy Utilization and Management Bureau (EUMB) was directed to develop and implement relevant projects and to come up “with a system of incentives and penalties,” which will be subject to public consultation.
“The circular was mainly intended to encourage users to participate in saving electricity. By coming up with incentives and penalties, we hope to get more support from them,” Ms. Capongcol explained.
“EUMB will release the details on how that system will work but it will be reasonable and will not unfairly punish the consumers,” she added.
“We hope that with such system, energy conservation measures will be more effective. Right now, we can’t monitor compliance yet and everything depends on the willingness of the consumers,” she continued.
“There’s no timetable yet on the release of the details, but of course, this will be used moving forward -- so, not only for 2015 but also the succeeding years.”
The circular also directed distribution utilities (DUs) to embark on information campaigns to get more consumers to participate.
At the same time, DoE also pushed for demand-side management steps specific for state offices. As provided by a 2005 administrative order, the DoE said “all government agencies and office shall discontinue the use of their air conditioning units, when weather permits.” In cases these units are needed, DoE said “thermostat shall be set no lower than 25 degree Celsius.”
The measure found support among some business groups.
“We fully support this. We believe that energy conservation and energy efficiency can reduce consumption by about 400 MW and help address the power problem,” Henry J. Schumacher, ECCP executive vice-president of the European Chamber of Commerce of the Philippines, said in a text message.
“I like a ‘carrot-and-stick’ policy to ‘encourage’ participation.”
Management Association of the Philippines (MAP) President Gregorio S. Navarro said DoE’s plan “looks like a sensible approach.”
“MAP is also coming up with power-saving tips for its members for implementation next year.”
Such measures, he said, include increasing air conditioning temperature to 24 degrees Celsius; using more LED lamps and appliances with inverters; and running standby generators during hours of high demand.
John D. Forbes, senior advisor of the American Chamber of Commerce of the Philippines, said via text: “We support energy efficiency campaigns and programs that will reduce demand for power.”
“Regarding incentives and penalties, it is important that the private sector is consulted as well.”
Business groups have been pushing for more effective use of the interruptible load program (ILP) for next year. They have expressed confidence that up to 700 MW can be enrolled under the ILP before the Dec. 19 deadline that the DoE set for the participants to voluntarily sign up under the program. The ILP is a measure that encourages big consumers to run their own generating sets to ease power demand in exchange for compensation.
At the same time, President Benigno S.C. Aquino III last month invoked the power crisis provision of the Electric Power Industry Reform Act of 2001, asking both chambers of Congress to issue a joint resolution that will authorize the government to buy the additional megawatts needed.
Yesterday, Energy Secretary Carlos Jericho L. Petilla told the Senate that Luzon grid will need up to 900 MW due to delay in start of power plant commercial operations. Mr. Petilla also submitted to the Senate Energy committee DoE’s latest draft resolution that outlined state options like rent or purchase of generating capacities of around 200-500 MW each. Authority under the resolution will expire by July 31 next year.
But Senator Sergio R. Osmeña III, who heads the committee, remained unconvinved. “The committee feels we have sufficient reserves here in the self-generating sets that private individuals or private corporations own. We have as much as 3,163 MW in Luzon alone owned by companies that use it as back-up power,” he told reporters. “When you take into consideration that the peak demand in the Meralco (Manila Electric Co.) franchise area is 5,200-5,300MW, it’s like you have a reserve of 60%.”
Oriental Mindoro Rep. Reynaldo V. Umali (2nd district), who heads the Energy committee of the House of Representatives, told reporters that the chamber aims to approve the joint resolution on final reading by Oct. 29. -- with Melissa Luz T. Lopez/VAAFN source
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