Senate to probe Luzon power shutdown

by Hannah Torregoza August 4, 2016

http://www.mb.com.ph/senate-to-probe-luzon-power-shutdown/

Senator Sherwin Gatchalian, who heads the Senate Committee on Energy, vowed yesterday to take up the resolution calling for an immediate inquiry into the questionable simultaneous power shutdown of the six power plants on the Luzon Grid.

Though he did not specify the exact date of the initial hearing, Gatchalian admitted that the probe would zero-in on the possibility of collusion among industry players, which Senate minority leader Ralph Recto pointed out in the resolution he filed.

“What we want is to determine what really happened and come out with legislation to prevent this type of collusion from happening,” Gatchalian said in a televised interview.

Earlier, Recto raised suspicion on the possible collusion among industry insiders after the six plants, which provide more than 13 percent of the Luzon grid’s installed capacity, went offline for unscheduled maintenance all at the same time last weekend.

The incident caused a massive spike in electricity rates for millions of consumers in Luzon, as electricity prices in the Wholesale Electricity Spot Market (WESM) jumped to five times the normal rate, from an average of P4 per kilowatt hour over the last month to a whopping P20 per kilowatt hour from July 29 to 30.

“We have to (know) if we have mechanisms to prevent collusion and to punish collusion, and that’s where the legislature will come in,” said Gatchalian.

 12-hour brownout

Meanwhile, there will be a12-hour power interruption tomorrow, affecting Cagayan province and parts of Isabela, Apayao and Kalinga.

The power outage beginning at 6 a.m. will affect the entire franchise areas of KAELCO, CAGELCO I and 2, and the ISELCO II Cabagan Substation. (With a report from Liezle Basa Iñigo)