DOE to cushion impact of higher power costs due to Malampaya shutdown

Energy Secretary Alfonso Cusi said his department is working with power generators and the Manila Electric Company (Meralco) to cushion the impact on electricity prices of the higher costs of liquid fuel used in running natural gas power plants during the Malampaya shutdown last month. (Photo: Philippine Military Analysis and Update/Facebook)

MANILA—Energy Secretary Alfonso Cusi said his department is working with power generators and the Manila Electric Company (Meralco) to cushion the impact on electricity prices of the higher costs of liquid fuel used in running natural gas power plants during the Malampaya shutdown last month.

“We are still keen on looking for ways (so as) not to pass on to the consumers the incremental cost brought by the shutdown. We are planning to hold a conference among those involved to address a no pass-on policy,” Cusi said in a media release issued Thursday.

According to Meralco, the Energy Regulatory Commission (ERC) has computed an incremental liquid fuel cost at approximately PHP0.66/kilowatt-hour (kWh), lower than the initial estimation of PHP0.92/kWh.

The power company also reported that the ERC has approved its request to stagger the incremental liquid fuel cost over three months starting this month to reduce the burden on customers.

Meanwhile, Cusi hailed the Malampaya shutdown for maintenance work last month as a success, saying the preventive measures the Department of Energy (DOE) had put in place averted a possible power supply deficiency.

The Malampaya gas-to-power project supplies natural gas to five power plants in Batangas — the 1,000-megawatt (MW) Sta. Rita plant, the 500-MW San Lorenzo plant, the 1,200-MW Ilijan plant, the 97-MW Avion plant, and the 414-MW San Gabriel plant.