ERC extends to Aug. 9 electricty spot price cap that would have lapsed June 25 

 

Power supply in Luzon grid remains thin following the shutdown of several powerplants, GMA early evening newscast “24 Oras” reported on Tuesday.

 

The Luzon grid supply dropped to critical levels last week after the San Lorenzo and Iligan powerplants in Batangas as well as a transformer of the National Grid Corporation of the Philippines (NCGP) in Dasmariñas, Cavite went down due to technical problems.

 

The two plants' shutdown coincided with the scheduled maintenance shutdown of the Malampaya Natural Gas Facility.

 

ERC executive director Francis Juan said it is just normal for power plants to encounter technical problems.

 

“May pagkakataon na kahit pa man mayroong pag-mamaintain ay masisiraan ka. Ang kanila pinaka discentive dito ay kung hindi sila tatakbo, sila rin ang mawawalan,” Juan said.

 

The Manila Electric Company (Meralco), who also buys electricity from WESM, supports ERC's decision on the price cap.

 

“If it will result to lowest spot market prices, then siyempre lowest spot market prices simply mean a contribution to low generation charges,” Meralco spokesperson Joe Zaldarriaga said.

 

The secondary price cap of P6.245/kWh will be implemented if the power price of WESM reaches P8.186/kWh for over 72 hours or three consecutive days.

 

Private power plant operators under Philippine Independent Power Producers Association Inc. (PIPPA) on Monday filed a petition before the Pasig Regional Trial Court to nullify the ERC order to extend the secondary price cap.

 

The PIPPA argued that the ruling was issued by the ERC without conducting public hearing and that the secondary price cap runs contrary to the fair market competition provided under the Electric Power Industry Reform Act of 2001 (EPIRA) as operators would be forced to offer power at a price that does not reflect its true cost, which may result to losses on the part of the operators

 

The group also argued that the ERC does not have a legal basis to intervene in the pricing of electricity in WESM based only on the decrease in the power supply.

 

Bayan Muna party-list Representative Neri Colmenares said power plants that have unscheduled shutdowns should be held accountable for disrupting the supply.

 

“May breach ka ng contractual obligations mo to supply electricity so dapat may penalty ka commensurate sa itataas ng kuryente kung ika'y nag shutdown at tumaas ang kuryente,” Colmenares said.  — Elizabeth Marcelo/ELR, GMA News