Mindanao power rate hike seen

DAVAO CITY, Philippines, Philippines —There is no other recourse for Mindanaoans but to bite the bullet with the expected increase in the power rates should they want a more stable power supply and finally put a stop to the rotating blackouts that have lately hit the island due to the long dry spell brought about by the El Niño phenomenon.

“Power rate hike in Mindanao is inevitable. There is no other way for Mindanao to increase its power supply except to raise its power rates for investors to come in and put additional power sources like generators to give a quick fix solution to the existing power problem,” said Ed Calabio, NGCP regional executive for Mindanao.

At the moment, Mindanao has the lowest power rate at P6.50/kilowatt hour as against P7.50/kwh and P9.50/kwh for Visayas and Luzon, respectively.

The expected increase would peg Mindanao power rates at between P15 to P19/kwh.

Mindanao’s energy mix of 60 percent hydropower and the rest sourced from diesel, coal-fired and geothermal plants, has brought down power rates in the island to low levels.

The long dry spell brought about by the El Niño phenomenon has caused water levels in Lake Lanao and Pulangi River in Bukidnon to recede hence affecting the two main sources of hydropower in Mindanao.

“The quick solution to the prevailing power curtailment that causes the rotating blackouts is to use modular generators because these could immediately be used within two weeks. And it would mean we will be using more expensive fuel, that is diesel, and it means increase in the prevailing power rates,” Calabio said.

Calabio explained that power barges take long to bring to Mindanao aside from the fact that these still require environmental clearance certificates and other clearances for its mooring in designated areas.

“Barges take months before one can start using them,” he added.

As of yesterday, Mindanao’s power generation deficiency was pegged at 545 megawatts as its available capacity was only at 785 MW and its peak demand reached 1,330 MW.

This developed as several options have also been proposed in the effort to address the Mindanao power crisis, one of which is tapping the available power in the neighboring countries of Brunei, Indonesia and Malaysia.

The Asian Development Bank (ADB) has reportedly been studying the possibility of linking Mindanao to the power sources in Kalimantan in Indonesia, Sarawak in East Malaysia and Brunei Darussalam, all in Borneo Island.

Mindanao shall reportedly be connected to the said areas through submarine cables that would transmit the power from Borneo to southern Philippines.