MANILA, Philippines – The Philippine Chamber of Commerce and Industry (PCCI) is pushing for the implementation of the Interruptible Load Program (ILP) to address the country’s expected power supply shortage next year. The ILP, the PCCI said, entails the least cost and may be done without need for special law.
“PCCI is of the view that the least-cost and most workable palliative measure is the full and active promotion of the ILP,” the business group said in a statement yesterday.
The ILP is a voluntary program subject to compensation of participants.
Under the ILP, qualified businesses would be compensated if they use their own generating facilities or sets during peak hours.
By using their own generating facilities, distribution utilities (DU) such as the Manila Electric Co. (Meralco) could reduce electricity supplied to participating businesses and serve other customers.
The PCCI said there are over 2,000 megawatts (MW) of stand-by generators registered with the Energy Regulatory Commission (ERC).
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
To be safe and assured, the group said only about 600 MW is needed to adequately respond to a 300-MW to-400 MW or more supply shortfall.
By using 400 MW for five hours a day using fuel costing P45 per liter, the PCCI estimates the resulting power cost increase is only in the vicinity of P0.9 per kilowatt hour for the month if such is implemented.
“There may be no need for subsidy for this and is a win-win situation for the ILP participants and the consumers,” the group said.
“This can be easily achieved with DOE (Department of Energy), Meralco and ERC joining forces directly in promoting it. The Office of the President can also complement this effort without need for special power or law,” it added.
In looking for measures to address the expected power supply shortfall, the PCCI is of the view the solution or remedy must be one where the resulting increase would be the least cost and temporary preferably, only during that period when the anticipated deficiency would occur.
According to the PCCI, if the measure being considered is to contract either on lease or direct purchase of capacity for a limited period, the action should be endorsed to the qualified or seasoned DU that is “on the ground,” experienced and knowledgeable on how, when and how much to contract such capacity under the supervision or supplemental guidance of either DOE and or ERC and on terms and conditions preferred by both government agencies.
