Meralco claims 900-MW under expanded ILP doable

The Manila Electric Company (Meralco) is claiming the target of 900 megawatts (MW) under the Interruptible Load Program (ILP) will be met under the measure's expanded scope to stave off a power crisis this summer.

 

The distribution utility is eyeing 900 MW to come from program, of which around 400 MW are from the contracted generator sets of industrial and commercial customers and 500 MW will come from contestable customers, Meralco Utility Economics head Larry Fernandez told reporters in a briefing in Pasig City.

 

"With the expansion of ILP to cover contestable customers, then we will have that 500 MW available to call upon if needed," he said.

 

"But we'll have to see how much the deficiency is and whether the customers are ready when called upon to activate," he added.

 

Meralco defines contestable customers as those who can switch their source of electricity to other suppliers under the Retail Competition and Open Access system of power distribution.

 

The ILP is a measure to engage the support of commercial and industrial consumers in managing the power reserves shortfall that may arise from the scheduled maintenance shutdown of Malampaya gas-to-power facility and other power plants by running their own generators to lessen the demand from the Luzon grid.

 

As of March 16, data from Meralco show that 80 companies accounting for 395.06 MW have signed up for the ILP.

 

Seven companies that can contribute up to 19.42 MW have yet to sign up under the program, according to Meralco data.

 

Meralco has eight retail electricity suppliers with a combined capacity of 352.94 MW under contract, and expects 154.09 MW more of potential capacity to come from contestable customers.

 

The distribution utility said it has also signed up the Cavite Ecozone to provide 7.5 MW from its genset.

 

"Every week na-co-convert 'yung expressions of commitment into contracts," Fernandez said.

 

The Energy Regulatory Commission (ERC) is currently finalizing the proposed amendment to the ILP to expand the scope of possible participants, executive director Francis Saturnino Juan said in the same briefing.

 

"Bakit kelangan i-expand [ang ILP]? In the original ILP design, only the captive customers of Meralco can participate. Ang kanya lang pwedeng matawag na customers that participate in the ILP ay 'yung customers n'ya," he said.

 

"But we found a way, in collaboration with concerned stakeholders like Meralco, RESA, NGCP, PIPPA, to expand the ILP to include contestable customers – 'yung mga hindi naman customers ng distribution utility... and other distribution utilities and ecozones," he added.

 

ERC may be able to come up with the amended ILP rules this week, even without the joint resolution of the Senate and House of Representatives, Juan noted.

 

"We're just polishing the language and incorporating what was discussed," he said.

 

"Should it come out within the week, we will promulgate it by posting it on our website. From then, the expanded coverage of the ILP can already be implemented," he noted.

 

The ILP participants can already be assured of compensation, the ERC executive said.

 

"In the original rules, the implementing cost will be recovered among captive customers. In the expanded ILP, it depends now on who administers the ILP, whether the NGCP, the distribution utility," Juan said.

 

"The recovery mechanism is defined but it will be charged on electricity consumers unless there would be some issuance in the future that will provide for a different recovery mechanism," he added, referring to the joint resolution of Congress.

 

On March 10, the Senate and the Houses of Representatives were still at odds over who should pay for the ILP – delaying the joint resolution to give President Benigno Aquino III special authority to address the looming power crisis. – VS, G MA News