DoE takes steps to ensure power supply
Energy Secretary Jose Rene D. Almendras has begun implementing measures and policies to keep electricity prices within “reasonable” levels.
These measures, according to Almendras, are meant to ensure adequate power supply and to ease the adverse impact of any increase in electricity prices on consumers.
“We do not claim a monopoly of ideas or expertise. As a matter of fact, we know that there are many more good ideas out there and welcome such, but we believe it is unfair to say we do not have a plan or that we are not doing enough. We are doing the best we can within the existing laws and structures. Should there be changes to the laws and structure, then we will abide and strive to make it work better,” Almendras said.
The energy chief emphasized the need for baseload plants in the country, as well as for the acquisition of appropriate baseload technologies and applying them in the local power setup.
“The current situation is, we are using nonbaseload technologies for baseload demands. Right now, the baseload applicable for us is coal, and as much as I have been criticized, we really need it right now,” Almendras said.
The Department of Energy (DoE) is also currently reviewing bilateral contract structures, which will establish a reward system for more efficient generators. Eventually, the rewards earned by generators would be shared and translated to savings for its customers, he explained.
Also, Almendras stressed support for the Wholesale Electricity Spot Market (WESM) to ensure that prices are appropriate for the situation. He noted the need to reformat WESM, turning it into an independent market.
As it is, the DoE has been successful in helping bring down the effective settlement spot prices at WESM to P3.855 per kilowatt-hour in the first seven months, from only P7.595 per kWh in the same period in 2010.
To provide power to remote areas, the DoE has been reviewing and pushing for the rationalization of universal charge filings for missionary electrification to ensure that the fund will be used efficiently to provide power to those who still do not have electricity.—Amy R. Remo
