Concerns over potential electricity rate increases were raised as a result of the four consecutive days of simultaneous power alerts in the Luzon and Visayas regions.

However, the Department of Energy (DOE) has reassured that there is no opportunity for collusion among industry stakeholders due to tighter rules in place.

"If you are concerned about the possibilities of collusion to drive prices up, this administration started to commission study using artificial intelligence and big data analytics to identify such behaviors," Energy Secretary Raphael Perpetuo Lotilla said during a media briefing on Friday.

Lotilla pointed out that power plant operators are aware of the ongoing study.

"If the study showed correlation, that is going to be brought to the attention of the Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC)," he added.

The ERC and PCC have jointly launched a special task force to monitor and investigate allegations of anti-competitive practices in the power sector.

Their fact-finding inquiries aim to uncover anti-competitive conducts that harm consumer welfare amid recent controversies in the local power sector, including multiple canceled supply deals and a multi-billion-peso power blackout, among others.

Impact on rates unknown

According to Lotilla, the Energy Department has yet to simulate the possible effect of the absence of sufficient supply due to an extended power plant shutdown.

“We won’t know until the billing period comes in but as you know, we have a secondary price cap and it is when the price triggers occur in the market. At the end of the day, what is more costly to the consumers is the lack of power and not the power rates,” Lotilla said.

This month, it can be recalled that the Manila Electric Co. (Meralco) announced a 99-centavo cut in electricity rates, which went down to P10.95 per kilowatt-hour (kWh) from P11.94 per kWh in March due to twin cuts in generation and transmission charges.

As a solution, Lotilla said additional power plants should be built to augment local supply.

“We must encourage the construction of new power plants and everyone can help. Some power plants are facing delays because of permits. Oftentimes, there has also been opposition even to renewable energy plants, and also in finishing the transmission lines,” he said.

“If there are delays in these, it is ourselves who suffer. It is important that power plant constructions are facilitated,” he added.

Situation to ease soon

For the fourth straight day, the National Grid Corp. of the Philippines (NGCP) placed the Luzon and the Visayas under yellow and red alerts yesterday as at least 47 power units were either on forced outage or derated, slashing a total of 3,021 megawatts (MW) from both grids.

Data as of 3:00 p.m. yesterday showed that theLuzon grid was placed under red alert from 3:00 p.m. to 4:00 p.m. and from 6:00 p.m. to 10:00 p.m.

A yellow alert, on the other hand, was declared from 12:00 noon to 3:00 p.m.; from 4:00 p.m. to 6:00 p.m.; and from 10:00 p.m. to 11:00 p.m.

The Luzon grid had an available capacity of 13,594 MW on Friday but peak demand was projected to reach 13,127 MW.

Meanwhile, in the Visayas, a yellow alert initially persisted from 12:00 noon to 4:00 p.m. and 5:00 p.m. to 8:00 p.m. It was later revised to last from 8:00 p.m. to 9:00 p.m. A red alert, on the other hand, was raised from 1:00 p.m. to 8:00 p.m.

The Visayas had an available capacity of 2,614 MW and a peak demand was projected at 2,445 MW.

When asked about the precise date when power alerts would be completely lifted, Lotilla responded that the DOE was unable to provide a definitive timeline.

“We don’t know when the extremely high temperatures will end, what we need to do is make sure we are prepared. The DOE is in close coordination with power plants that go online. We are expecting improvements over the weekend, we are hoping for several major plants to be back online,” he explained.

The extreme weather conditions have caused a reduction in the capacity of power plants, particularly hydroelectric and thermal plants, as previously reported by the ERC.

Notably, the unplanned outages were not part of the Grid Operating and Maintenance Program (GOMP), which is meticulously planned and coordinated by NGCP with the power plants and approved by the DoE.

The NGCP is responsible for coordinating the preparation and submission of an annual Grid Operating and Maintenance Program to the DOE. This program consolidates the preventive maintenance schedules of power plants, taking into account the necessary supply to meet the projected demand.

As per the DoE directive, no maintenance shutdowns were allowed during the summer. The ERC will investigate any potential violations and impose fines on those responsible, said Lotilla.