No impending power, water crisis, Palace assures public

Malacañang allayed fears yesterday of an impending power crisis that will reportedly trigger rotating blackouts from Nov. 18 to Dec. 17.

The likelihood of a power crisis was raised by the Consumer and Oil Price Watch (COPW) even as some parts of Luzon remained in darkness as some transmission lines remained down in the aftermath of typhoon "Milenyo."

In a statement, Press Secretary Ignacio Bunye said authorities were working round-the-clock to prevent potential problems with electricity and water supply.

"The periodic assessment of our future energy requirements is a permanent task of the government and our energy team is closely working with all industry sectors and stakeholders in this regard," Bunye said.

"We have enough energy supply and we assure the public that this will be maintained in the coming years," he added.

The COPW, through its chairman Raul Concepcion, said earlier a power crisis is imminent as the 2,700 megawatts gas-fired plants in Batangas will be shut down due to the scheduled maintenance of the Malampaya Natural Gas Pipeline.

As a result, the National Power Corp. (Napocor) will have to put back into service the more expensive Malaya oil-fired power plant — a move that will result in higher prices in the Wholesale Electricity Spot Market (WESM).

Bunye said the ongoing privatization of assets of Napocor as well as the inflow of investments in the energy sector should dispel anxieties over the country’s power situation.

He said WESM would also satisfy the growing demand for energy in the country at cheaper rates.

"We are also exploring various alternative sources of energy to reinforce the whole system and we assure the public that no one will be groping in the dark in the coming years," Bunye said.

On Aug. 11, the COPW said the 600-MW Mirant coal-fired plant in Sual, Pangasinan broke down and would take six to eight months to repair.

It proposed that concerned sectors discuss ways to avert a crisis. He also pushed for a moratorium on the digging of new deep wells by industries, subdivisions and gold courses to keep water reserves from getting depleted.

Bunye said new power plants are needed to address the additional 4,438 MW demand in the next five years.

"Based on the Philippine Energy Plan 2005, the system peak demand is expected to increase from 9,827 MW in 2005 to 14,265 MW in 2010 and it will take five years to build a new power plant," COPW said.

COPW said 3,400 MW of power from old plants had been retired as they were expensive to operate.

COPW also said the privatization program would only "transfer the ownership of the assets to the private sector but does not add to the generating capacity" of the plants.

"To date, only 65 MW wind power plant is under construction. This is far from the goal of 4,438 in 2010," COPW said.

COPW is also pushing for amendments to the Electric Power Industry Reform Act of 2001 before the congressional recess on Dec. 15 to prevent a power crisis.

The amendments being pushed by COPW include privatizing the National Transmission Corp. with the winning bidder to be given a 25-year congressional franchise to operate; transferring the management and control of Napocor-Independent Power Producer plants to IPP administrators; and making the Energy Regulatory Commission truly independent, with its decisions not to be subjected to court review. — Aurea Calica

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