DoE seeks ERC’s help in resolving Visayas power supply shortages
Not wanting to leave a legacy of a power crisis, Energy Secretary Angelo T. Reyes is stepping up strategies as it sought the help of the Energy Regulatory Commission (ERC) so they can hasten a ‘‘common path solution’’ to ease predicaments of power supply shortages in the Visayas grid.
The energy chief on Wednesday (August) scheduled a meeting with ERC chairperson Zenaida Ducut, with the intent to corner an immediate approval for the implementation of the Visayas Supply Augmentation Auction (VSAA) which has been the government’s proposed interim solution to supply woes in the area, especially in the Cebu-Nergos-Panay (CNP) grid.
“I’m meeting with her (Chairman Ducut) and I have requested to approve the plan. We are also accelerating the setting up of additional capacities,” Reyes said.
Apart from the VSAA, the energy chief is also knocking at investors’ doors for fresh capital infusion into new power projects to prop up capacity in the Visayas.
The Visayas power problem has been lingering for several years now, and despite the government’s efforts, the power supply problem has not eased, in fact, it turned worse through time.
Reyes indicated the hurdles in inviting power investments was partly due to opposition posed by host communities, thus, he is seeking the indulgence of local government units (LGUs) in addressing that particular concern.
“It’s difficult to invite power generators while the community objects to the project. It’s a whole gamut of problems confronting somebody who wants to invite investors,” he stressed.
With gross reserves in the Visayas hovering at negative levels, the energy chief noted that policymakers must broaden resources in setting an investment climate viable for capital inflows.
“The environment would have to provide the proper climate for investors to come in and that’s the total effort,” he said.
The first new capacity coming on line would be the 82-megawatt unit 1 of the 246-MW Toledo power facility. While this may help, it needs more capacity to plug the shortfall. The next facility coming on stream would be the 200-MW Naga coal project of Kepco-SPC Power Corp., by 2011.
As an initial step for Visayas, the ERC recently gave go-signal to the de-loading program proposed by utility firm Visayan Electric Company.
The scheme enjoins VECO to enter into interruptible load agreements (ILA) with its wholesale power customers, allowing it to de-load supply for other customers within its franchise area whenever scant capacity strikes.


