DoE: Supply stable but rate hike likely

Filipinos are assured of a steady power supply, particularly during dry months when demand typically surges, despite the potential impact of El Niño.

However, the Department of Energy, or DoE, has cautioned that in the worst-case scenario, electricity rates may shoot up.

Energy Undersecretary Rowena Cristina Guevara confidently stated that there are no anticipated power interruptions in the upcoming months.

Her assurance was based on supply that would be sufficient to meet the anticipated demand.

“Based on the power outlook presented to us, every week we have a power outlook, so far we do not see any yellow or red alerts,” Guevara told reporters. 

Thin margin

“When we look at the numbers, for Luzon, we are okay, and our margin would be about 300 to 700 megawatts or MW. For the Visayas, the margin is quite thin on a typical day, anywhere from 8 percent only so that’s a bit critical. And for Mindanao, that’s really kind of problematic because their margin is around 25 to 30 percent,” she added.

According to Guevara, the DoE, along with other stakeholders in the power sector, establish contingency plans in anticipation of unexpected power plant shutdowns.

“We look at the worst case. The only possible thing that might happen is that you might have to run the more expensive plants, so the rates may increase but that’s better than having no power,” she said. 

Guevara noted that the cost of no electricity is P300 per kilowatt-hour or kWh.

“We did some simulation for that. Do you want to lose P300 per kWh? We don’t want that,” she added.

Meanwhile, Energy Secretary Raphael Perpetuo Lotilla urged consumers to efficiently manage their consumption. 

“As we said, there is right now adequate supply but we will continuously monitor. But we have to also limit the use of power because the agriculture sector has had an increased need for irrigation. As we have explained to you before, we have made contingencies in case,” Lotilla said.

“Let’s continue to work on energy efficiency and conservation. Because that would help us in addressing the cost. We don’t have to run the diesel-fired and the oil-based power plants which usually increase the rates,” he added.