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The curiousity of power shutdowns and price spikes (part 2)

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Teddy Casiño

(Second of three parts)

In its letter to the Energy Regulatory Commission (ERC) last month requesting for a P4.14/KwH rate increase, the Manila Electric Company (Meralco) said it was merely passing on to its customers the higher cost of power generation charged by its suppliers in November and December. The spike in the generation charge, Meralco said, was brought about by a confluence of “forced” and unscheduled shutdowns by several power plants coinciding with the scheduled maintennance shutdown of the Malampaya natural gas facility from November 11-December 10, 2013.

Shutdowns, supply disruption expected

Whenever the Malampaya natural gas facility shuts down, the big power plants supplying Meralco’s power have to shift to more expensive condensates to continue operating, thus raising the cost of generated power. Last year’s shutdown was not unforseen and had been announced a year before on March 2012. According to the Department of Energy (DOE), they held…

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Author: pchan_august

Juris Doctor (Law) Graduate. Iskolar ng Bayan. Activist. Environmentalist. Frustrated Singer, Poet and Writer. Computer Enthusiast. Servant of the Masses. God's Servant.

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