Hike in Mindanao power rates feared

DAVAO CITY -- Power rates in Mindanao are feared to increase especially with the arrival of four power generating units that will augment the island’s energy supply.

A bank official said Thursday that power rates in Mindanao could go up from P3 to as much as P18 per kilowatt hour, especially with the use of four power generating units that are expected to arrive in Mindanao anytime soon.

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"One thing that I fear is that power rates can go up… It can even reach P21 per kilowatt hour," Development Bank of the Philippines (DBP) President Reynaldo David said during a business forum hosted by SyCip, Gorres, Velayo & Co (SGV) Thursday night at Marco Polo Davao Hotel.

He said the four power generating units will be used to ease the growing energy supply gap being experienced in Mindanao region, which has been placed under state of calamity by President Gloria Macapagal-Arroyo due to the worsening energy crisis.

Arroyo declared the state of calamity on Thursday upon recommendation by the National Disaster Coordinating Council (NDCC).

But David said even the day before the declaration, Arroyo had already urged government financial institutions to expedite the loans for the acquisition of power barges and generator sets in Mindanao.

During the meeting with the President, David said the orders were for the Land Bank of the Philippines and the DBP to "provide funding for the purchase or lease of generating units with capacity of up to 100 megawatts."

Measures

The President has given specific measures to NDCC and Department of Energy (DOE) to deal with the power deficiency.

The measures were divided into three parts: generation related, load customer related and transmission related.

Plans under power generation include: National Power Corporation (Napocor)/Alto Power to resolve the additional 5.5 Megawatts (MW) unit at Southern Philippines Power Corporation; resume operation of 100 MW Iligan Diesel Power Plant by Power Sector Assets and Liabilities Management (Psalm)/Napocor; contract additional power generation if there is any, within the franchise area; and operate available embedded generators from private sectors.

Under load customer related, Arroyo ordered automatic de-loading of demand between 6 p.m. to 8 p.m.; schedule manufacturing activity during off-peace period between 9 p.m. to 5 a.m.; load customers should follow the Napocor recommended level of curtailment; and consumers shall implement the DOE recommended energy conversation measures side management.

In transmission related, the President had several urgent measures, including speed up of repair completion of Agus-2 Kibawe 138 kilovolt (KV) lines 1 and 2 that already repaired but keeps on bugging down; expedite the commissioning of Marang-Bunawan 230 KV backbone project; and rush the completion of Sangali-Pitogo 138 KV line.

Aside from these mitigating plans, Arroyo said the National Government has authorized one billion peso calamity fund for areas badly hit by El Niño in Mindanao.

“It’s up to the El Niño Task Force, headed by the Department of Agriculture (DA), how to allocate among the different (area),” she said.

The President opted to declare state of calamity in Mindanao as the island experiences five to eight hours rotating brownout as result of continuing dry spell.

The proclamation enables local government units (LGUs) to use Mindanao’s internal revenue allotment (IRA) amounted to P68.9 billion in 2009.

Arroyo said she is counting on the local government units (LGUs) to spend its five percent IRA wisely to address the effects of El Niño.

She said they will be pushing through with the leasing of generator sets not through the government, as prohibited by the Electric Power Industry Reform Act (Epira) law, but through the private sectors.

“I said we should also use the embedded generating capacity, when they had a shortage that’s what they did, they used the embedded generating capacity of the private sector; they allowed them to connect to the grid,” she said.

Arroyo estimated a 100 million dollar cost for power generating machines loan.

Politician’s fear

Several officials feared that the funds extracted upon the state of calamity declaration might be used by politicians running in May elections.

Deputy Presidential Spokesperson Charito Planas, in her weekly press briefing at the Malacañang, allayed these fears and called for unified action on El Niño.

She said speculations from administration critics are not helping the government, but instead are worsening the problem.

Lashing back at critics, particularly presidential candidates, Planas urged them to come up with their own plan to solve power crisis if they do not agree with the government’s plan.

“They should not focus on plain politicking; they should focus on solution, not just criticizing the administration. Politicians should start changing, show you programs to people,” Planas said.

“Don’t blame it all on the government. Each of us should contribute in this cause,” she added.

As advice to public, Planas said that going back to basics could help mitigate the dry spell.

“The use of alternative appliances that perform or provide the same kind of function and utility such as using the electric fans instead of air conditioning units, use of wash and wear clothes and use of LPG stoves or charcoal stoves rather than electric stoves and simply yet proven energy-saving measures,” she said. (Carlo P. Mallo of Sun.Star Davao/Jill Beltran/Sunnex)