Visayas power stable until 2018-DOE but rates up by 40%

BACOLOD CITY, Philippines  - There is an ample supply of power in the Visayas until 2018 with the construction of new power plants but consumers will have to brace for higher rates, Department of Energy (DOE) officials said.

DOE-Visayas Field Office director Antonio Labios, who made a presentation of the Visayas Power Situation during the Regional Development Council meeting at the Negros Occidental Capitol Thursday, said that power plants in the Visayas now produce a total of 1,700 to 1,800 megawatts (MWs), which is in excess of its current demand of 1,350 to 1,400 MWs.

This is due to the additional power from newly built plants such as the 100-MW coal-fired power plant of KEPCO in Cebu and the 2x82-MW coal-fired power plant of Panay Energy Development Corp. in Iloilo, which were inaugurated recently, Labios said.

Rey Malleza, supervisor of the Energy Industry Management Division of the DOE Visayas Field Office, however said that the power rates were expected to increase by 30 to 40 percent, because of the implementation of the EPIRA (Electric Power Industry Reform Act) that has led to the privatization of power firms.

Malleza explained that before the privatization, power rates were lower because they were subsidized by the government, but with EPIRA, consumers are now paying their true rates.

While the National Power Corp. had sold subsidized power at P3 per kilowatt hour, it is now being sold at P7 per kilowatt hour because of privatization, he said. "With the entry though of more power companies and an open access to power, the rates will eventually go down, Malleza said.

Labios warned that although power supply would be enough until 2018, demands in the Visayas will hit a critical level by 2019 if no new plants will be built starting 2017.

He reiterated the need for Negros Occidental to work in coming up with its own power plants, pointing out that electricity will be cheaper if the source is nearer. Until now, Negros Occidental has no power plant of its own, despite being a big province, he said.

Capiz Governor Victor Tanco, chairman of the RDC-Western Visayas, said Negros Occidental is fortunate to have lower power rates than Panay now. "We are trying to find renewable sources of energy to eventually bring down power costs," he said.

Guimaras Gov. Felipe Nava said TransAsia is doing the groundwork in his province for the production of 54 megawatts of wind power, with the construction phase expected to start next year. Guimaras only consumes 5-MWs so the remainider of the power generated can be sold to Panay, he added.

In other developments at the RDC meeting, Governor Alfredo Marañon Jr. submitted to the RDC a resolution uprating the Negros-Panay submarine cable and for the National Grid Corporation of the Philippines to expedite its implementation. (FREEMAN)