News & Events

145 firms ready to run own generators this summer

News Release

Office of LPG-MA Rep. Arnel Ty, House Deputy Minority Leader

Room 607 South Wing, House of Representatives, Constitution Hills, Quezon City, Tel No. 931-5144

December 14, 2014

145 firms ready to run own generators this summer

Falling oil price seen to spur use of standby generators

as Luzon braces for menacing power shortage

       At least 145 large companies in Luzon have pledged to run their standby generator sets this summer, so that other consumers may have adequate supply of electricity amid a menacing power shortage, House Deputy Minority Leader and LPG-MA Rep. Arnel Ty said Sunday.

        “Once the 145 firms drive their backup generators, some 603 megawatts (MW) of supply from the Luzon grid will be freed and available for use by smaller businesses and homes,” said Ty, a senior member of the House energy committee.

        Ty said the 38 big customers of the Manila Electric Co. plus 107 clients of retail electricity suppliers have voluntarily enlisted in the Interruptible Load Program (ILP) of the Department of Energy (DOE) as of Dec. 12, 2014.

        Under the ILP, participants with loads of at least one MW each -- mostly industrial facilities, shopping malls as well as office and residential skyscrapers -- will be asked to disconnect from the grid and run their standby generators, once the supply of electricity is expected to fall short of demand.

        The ILP guarantees other consumers -- those without any self-generating capacity -- ample electricity despite potential supply deficiencies.

        “We have very high hopes that the ILP will help address the power supply shortfall in a big way,” Ty said.

        He also expressed confidence that the falling price of oil would encourage more businesses to join the ILP in the weeks ahead.

        “Apart from spending less for their regular electricity bills, businesses temporarily self-generating some of their power needs this summer will actually save money as a result of declining fuel prices,” Ty said.

        Oil prices have fallen below $60 per barrel, down 47 percent from $107 in June this year.

        The multinational financial services firm Morgan Stanley sees oil prices falling further, to as low as $43 per barrel by the first half 2015, due to overflowing supply amid sluggish demand.

        Luzon faces a 700-MW power deficit over 16 weeks from March to July 2015, with the risk of brownouts happening one hour per day every week, according to the DOE.

        The House of Representatives has already passed on third and final reading President Benigno Aquino III’s request for extra muscle to deal with the looming power lack.