ZAMBOANGA CITY – For the past several months, Zamboanga City has been suffering from severe power curtailment – as much as 6 hours a day and at worst, 8 hours or more. And local electric cooperative officials quickly blamed the lack of electricity to the dry season and maintenance shutdown of hydro and coal-fired power plants in Mindanao for the power crisis in Zamboanga and the rest of Mindanao.
The Zamboanga City Electric Cooperative said it needs at least 80 megawatts of electricity and in previous statements, George Ledesma, manager of the local electric cooperative, said they were only receiving the power from National Grid Corporation of the Philippines.
Ledesma said Power Sector Assets and Liabilities Management Corporation is only giving Zamboanga – a highly urbanized city and one of the largest in the Philippines – 42 megawatts, and 18 megawatts more from Therma Marine Inc., of the Aboitiz Power Corp. and from Mapalad Power Corp.
The NGCP has previously blamed the low water level and routine maintenance in hydro-power plants in Mindanao as the culprit for the lack of power supply in the region. And with this problem, big power producers take advantage of the situation and offer alternative, but expensive solutions – diesel-fed power barges and dirty coal-fired power plants – to provide more electricity supply.
The long hours of blackout are affecting not only many business establishments, but also hundreds of thousands of households here and there is no tangible solution in sight, not until 2016 when the 100-megawatt coal-fired power plant of the Alsons Power Holdings begins operations in the village of Talisayan. But villagers have been opposing the establishment of the coal-fired power plant in the village due to the serious health hazards this pose to humans and animals.
But Alsons have not started building its facility and cited many reasons for the alarming delay – from the failed rebellion in 2013 to the P900-million enhancement program it wanted from theZamboanga City Electric Cooperative – in the construction of the 100 megawatt coal-fired power plant, although it finished another coal-fired power plant in Sarangani province.
Mindanao has been hit by repeated power crises in the past and nothing has been done by the government except to promote the use of coal-fired power plants – but this too, comes with a price and that translates to huge electric bills and environmental pollutions.
The same problem occurred in 2013 when the region suffered to as much as 14 hours of blackout.
And the Zamboanga Chamber of Commerce and Industry said the acute power shortage has affected many business establishments here – big and small – and continues to threaten the vibrant economy.
“Sixty hours of power interruptions last March is bad for business. It increases our cost of operation and decreased the productivity of everyone, public and private offices. Even small businesses like Internet shops, beauty parlors and restaurants. No power, no business,” Edwin To, president of the local business chamber, told the regional newspaper Mindanao Examiner.
He said business owners who can afford the use of power generators were also complaining because it adds up to the cost of running their establishment. “For those with generator, power costs are double. The Zamboanga City Electric Cooperative charges P8 per kilowatt hour while diesel generator is P18-P20 per kilowatt hour. Even if you have a generator, it’s not cheap to operate,” To said.
He also said that the entry of big business establishments in Zamboanga city will further affect the current power situation if the local electric cooperative cannot provide additional supply into the grid. “And this means more and longer power interruptions. Zamboanga chamber is always concern with the welfare of the entire city. We see it in a macro-perspective. We oversee the interest of the businesses and the people in the community,” To said.
At least 3 new malls are being constructed in Zamboanga – City Mall, Yubenco and KCC Mall de Zamboanga – aside from other smaller shops and establishments.
The Department of Energy said the acute power shortage is expected to improve by 2017, and in the meantime, To said the Aquino government should push for the so-called Interruptible Load Program or ILP.
“In the meantime, the government should push for the ILP implementing rules and regulations and make it attractive for commercial establishments with excess power to join. Manage the demand side and advise users to conserve energy,” said To, who is also the president of Budgetwise supermarket, one of the biggest in Zamboanga; and the chairman of the modern Ciudad Medical Zamboanga.
According to the Retail Electricity Suppliers Association, ILP – a program established by the Department of Energy and the Energy Regulatory Commission aims to help mitigate the energy supply deficiency in the country until new capacities become available on the grid.
Companies with stand-by generation capacities who participate in the ILP will be compensated under this program should they use their own generating facilities during instances of power supply deficit.
But companies that will participate in the ILP will be asked by the distribution utility to “de-load” for particular hours in a day when the power supply in the grid will not be enough for the power demand. “De-loading” will mean having to run its embedded stand-by generation sets to provide for its own electricity requirements.
For Pedro Rufo Soliven, regional governor of the Philippine Chamber of Commerce and Industry for Western Mindanao, said everybody must do their share in helping the government find a solution to the acute power crisis.
Soliven, former president of the Zamboanga city Chamber of Commerce and Industry, said: “We would like to be part of the solution and we are working hand-in-hand with the Zamboanga City Electric Cooperative and the Local government of Zamboanga and look for solution to address this problem of power curtailment.”
“And we are also looking for short term and long term solutions on how we can really solve immediately the lack of electricity supply in the city and be able really to come up with something to address the (power) demand of the city.”
The costs of the power shortage to the businesses and Zamboanga City’s economy is not readily available. (Mindanao Examiner)
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