News & Events

November 14, 2014

Large GOCCs expected to run own gensets

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


November 13, 2014

Large GOCCs expected to run own gensets

So other consumers may have enough power in summer

        To assure other consumers enough electricity, large government-owned and controlled corporations (GOCCs) are expected to offer to run their standby generators in the event that Luzon’s power supply becomes extremely low in the summer of 2015, a senior member of Congress said Thursday.

        “Assuming they have backup generators, we are counting on GOCCs with loads of more than one megawatt (MW) to join the Interruptible Load Program (ILP),” said House Deputy Minority Leader and LPG-MA Rep. Arnel Ty.

        “Of course we expect them to rally around. They are state-held entities. They are supposed to set an example for others, including those in the private sector,” said Ty, who speaks for the minority bloc in the House energy committee.

        “The best way for them to help is to voluntarily enlist in the ILP,” Ty added.

        Based on Commission on Audit (COA) records, there are 81 GOCCs, though some of them may have loads of less than one MW.

        Ty previously appealed to the 263 corporations listed at the Philippine Stock Exchange (PSE) to sign up for the ILP.

        The PSE groups some of the Philippines’ largest business concerns with the best corporate social responsibility reputations.

        At least seven PSE-listed firms -- Ayala Land Inc., Century Properties Group Inc., GMA Network Inc., Megaworld Corp., Philippine Long Distance Telephone Co., Robinsons Land Corp., and SM Prime Holdings Inc. -- have already enrolled in the ILP on their own accord.

        Once there is high risk that the supply of electricity may fall short of demand between March to July next year, ILP participants will be asked to disconnect from the Luzon power grid and run their own generators.

        The program hopes to guarantee other consumers -- smaller businesses and households -- adequate electricity despite possible supply deficiencies.

        A total of 29 large private firms, including those not listed at the PSE, have so far enrolled in the ILP. They are prepared to drive their backup generators once called upon to do so by either the Manila Electric Co. or the National Grid Corporation of the Philippines.

        Congress is set to approve a joint resolution granting Malacañang emergency powers to deal with the anticipated power lack in the summer months.

        Based on the proposed resolution, 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.

        The resolution sets three strategies to address the shortfall:

        -The installation of additional generation capacity before March next year.        

        -The sourcing of extra supply from firms with backup generators, through the ILP; and        

        -The adoption of highly aggressive energy conservation measures.

       “The ILP is the favored strategy because the backup supply is already there, ready to be harnessed. It also affords consumers the best protection against excessive increases in electricity rates due to the shortage,” Ty pointed out.

        The Energy Regulatory Commission estimates that privately owned standby generators could supply up to 3,000 MW.

        Led by Ty, LPG-MA has been batting for stronger government supervision of all energy markets to reinforce consumer protection against potential pricing abuses and unfair trade practices.

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