DOE to try to keep supply going once Malampaya shuts down in January

The Department of Energy is trying to avert a supply deficiency so as to prevent a possible increase in the generation cost of power plants when the Malampaya natural gas facility goes on maintenance shutdown in January 2017, Energy Secretary Alfonso Cusi said on Wednesday.

Stakeholders have assured the government that the generating capacity of operating power facilities will also not be compromised.

"They are ensuring that there will be no reduction of generation," Energy Secretary Alfonso Cusi told reporters at a forum in Manila on Wednesday. He said talks are ongoing in preparation for the maintenance shutdown of Malampaya.

In a separate text message, Energy Undersecretary Felix Fuentebella said the measures to cushion possible power rate increases will be disclosed after the results of the meetings with stakeholders are finalized.

The gas-to-power facility is scheduled for a maintenance shutdown from January 28 to February 16, 2017.

It supplies fuel needs of three power plants in Luzon – Santa Rita (1,000 MW), San Lorenzo, (500 MW) and Elian (1,200 MW) – which account for about half of the the Luzon grid requires.

"We have to make sure there will be no increases in generation cost. As early as now, nagbibigay na sila sa atin ng mga plano ano gagawin with every plant to make sure enough ang supply," the Cusi noted.

The Energy department and stakeholders of the Malampaya facility are scheduled to meet on December 23 to address the upcoming situation.

The Malampaya shutdown is expected to result in a supply deficit of about 700 megawatts (MW).

In 2013, Malampaya was closed for a month – from November 11 to December 10 – which led to the controversial spike in electricity rates from the Wholesale Electricity Spot Market. — VS, GMA News