Private power generatorsto produce backup supply

CEBU, Philippines - At least 60 establishments in Cebu have agreed to share out their private generation units to provide an additional 80 megawatts of backup power for Metro Cebu in case power shortage will be experienced in the next few months.

In a Memorandum of Agreement (MOA) signed between the Visayan Electric Company (VECO) and the private business sector, the latter vowed to come to the rescue in case additional power will be needed. The agreement sealed was initiated by the Cebu Chamber of Commerce and Industry Power Core Group.

Carlos Co, chairman of the CCCI Power Core Group said yesterday that through this Power Augmentation Program sealed by VECO and some business establishments, Cebu will be saved from dangerous power shortage that is expected to happen anytime this year, as the 246-megawatt coal plant in Toledo City is yet to start its operation next year.

Luckily though, Co said demand for power in Cebu has declined in the last few months, because of the global economic crisis, as some heavy power consuming companies have streamlined their operations while others have declared temporary shutdown.

Power supply in Cebu has reportedly stabilized owing to shortened work hours of companies such as the big furniture manufacturing plants in Mandaue.             

Moreover, heavy power users in Mactan Economic Zone (MEZ) have also adapted the same strategy resulting to a 25 percent drop in power consumption in the zone, as reported by the zone’s power provider East Asia Utilities.

Co said that the group includes big establishments like SM City Cebu, Ayala Center Cebu, San Miguel Corporation, Metro Gaisano, and other Gaisano shopping malls and department stores, among others.

Under this agreement, business establishments will offer their power generators for use to aid VECO, if ever there will be a shortage. However, since using generators is a bit expensive, a pass on rate of an estimated two centavos to 10 centavos will be added by VECO to consumers who will be able to benefit from this program, Co said.

Although VECO recently announced a hike of P.90 per kilowatt-hour, Co said an additional 10 centavo for instance will not hurt consumers as much as when they will suffer from excessive power outages.

“It’s better to pay a little more, than no power at all,” said Co, emphasizing that this is only a temporary strategy to arrest power shortage, while Toledo Power still has to operate in 2010.

At present VECO consumes at a high of 300 megawatts, demand lowers to at least 280 megawatts during off-peak hours.

In a separate earlier interview with Jimmy Aboitiz, VECO chief operating officer (COO) he said that the total load of VECO is over 300 megawatt (MG).

Aboitiz said the company is seeing an average of 10 MG to 20 MG shortage of power during peak hours. This program will aid the looming power shortage problem this year, and the first quarter of 2010.

VECO is growing at an average of five percent per year. Assured supply of power is needed by the distribution company in order to avoid shortage.

VECO's franchise covers from Liloan in the north up to Naga in the southern part of Cebu.