News & Events

November 11, 2014

BUSINESSMIRROR: Lawmaker says seven more firms volunteer to join ILP

A PARTY-LIST lawmaker on Saturday said that seven more large corporations have volunteered to generate their own electricity consumption to address the looming power shortage in the summer of next year.

House Deputy Minority Leader and Liquefied Petroleum Gas Marketers’ Association Rep. Arnel Ty said the electricity saved by these corporations could be utilized by other consumers under the Interruptible Load Program (ILP).  

ILP is a voluntary program whereby businesses, such as malls and factories that have their own generators, can be disconnected from the power grid in times of short supply, and can sell any excess power they generate to distributors.

Ty identified the seven large corporations which have joined the call to run their standby generators as GMA Network, Century Properties Group Inc., Federal Land Inc., Fort Bonifacio Development Corp., Philam Properties Corp., Posh Properties Development Co., and Trafalgar Plaza Condominium Corp.

“These firms are ready to drive their backup generators under the Interruptible Load Program,” said Ty, who speaks for the minority bloc in the House energy committee.

“We applaud these entities for going out of their way to shield consumers, by helping to minimize the threat of any potential power shortages in Luzon between February and June next year,” Ty said.

Currently, Ty said a total of 29 firms have offered to operate their standby generators, if required, instead of obtaining their electricity from the Luzon grid in the summer of 2015, when demand is seen to be at its peak due to summer heat, while supply becomes fragile owing to reduced water pressure at hydropower facilities.

“Should all 29 firms run their own generators, some 169 megawatts [MW] of supply may be freed and available for smaller businesses and homes,” according to Ty.

The Department of Energy has warned that the supply deficit for Luzon could reach up to 900 MW next year due to the onset of mild El Niño.

Based on established protocols, ILP is implemented during a red-alert status (minimal power reserve) upon the notice of the National Grid Corp. of the Philippines and the distribution utilities informing ILP participants to deload from the grid.

Last month, President Aquino has asked Congress to grant him emergency powers through a joint resolution that will allow him to contract additional power capacity to avert the looming power crisis in summer next year.

The President cited Section 71 of the Electric Power Industry Reform Act which states that, “Upon determination by the President of the Philippines of an imminent shortage of the supply of electricity, Congress may authorize, through a joint resolution, the establishment of additional generating capacity.”

According to the draft resolution on emergency powers, the House of Representatives wants the government to use the committed ILP in addressing the looming power shortage next year.

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