Wednesday, 1st October 2014

Click Icon to Share this post

Share

By: Tara Yap

THE MIXTURE of coal and diesel fuel to generate electricity is still the cheapest option for Iloilo City.

This was disclosed by Arthur Aguilar, president of Global Business Power Corp. (GBPC), owner of Panay Energy Development Corp. (PEDC) that operates the 164-MW coal-fired power plant and Panay Power Corp. (PPC) that operates the 72-MW diesel fuel power plant in Ingore, LaPaz, Iloilo City.

At the meeting of Iloilo Economic Development Foundation Inc. (ILED) over the weekend, Aguilar explained why Iloilo City’s sole power distributor Panay Electric Co. (PECO) is relying on a coal and diesel fuel mix as opposed to relying on electricity entirely generated by coal.

Aguilar noted significant increase in power demand during daytime when government offices and business establishments are open and need more power to run appliances.

While “clean coal” is cheaper, it takes a longer period of time to generate the electricity. Thus, it cannot comply with the power needs of Iloilo City during daytime, he explained.

“The nature of Iloilo City electricity market is that PECO must still get diesel power during peak hours in order to get lower rates,” Aguilar added.

In 1998, PECO initially signed a 25-year contract with PPC for the 72-MW diesel-generated electricity.

Aguilar emphasized that if the contract had been pursued until now, PPC rate to PECO would not be less than P9.8/kWh and PECO’s rate will be pegged at P13.6/kWh.

Now, PECO residential rate has dropped to P11.47/kWh with the coal plant in full operation.

“The bottom line, we spent P20 billion to lower your electricity by P2,” Aguilar emphasized the impact of the 164-MW coal plant that became operational in 2011.

Meanwhile, Aguilar again pointed out to ILED the warning that Iloilo City consumers will pay an additional P1/kWh for transmission rate if the National Grid Corporation of the Philippines (NGCP) acquires PEDC.

 

Under-recoveries

Aguilar assures that Iloilo City consumers will not be burdened with the P692.3-million under-recoveries of the coal plant.

PEDC will collect the P0.3242/kWh spread in six to seven years as opposed to the five-year period, which was previously approved by Energy Regulatory Commission (ERC).

Opinion new Banner
Click image for full view
Remembering Ivan Suansing

October 01, 2014 01:06 AM

By: Manuel “Boy” Mejorada

ONE of the best journalists I’ve ever known was the late Ivan P. Suansing. He brought to the craft the right attitude and the right tools. His elegant prose made his articles come alive. He treated his profession like a sacred vocation. Ivan could easily have become an editor of the Philippine Daily Inquirer. Read more...

Powerful SRA-2

October 01, 2014 01:04 AM

By: Modesto P. Sao-noy

THE primary purpose of the Benitez bill is to cover all products derived from sugarcane, the reason that the title of the bill uses the name of the plant (sugarcane) rather than the product (sugar) as the subject of the measure. It speaks not only of food but also of energy and the control of these products from the time it comes out of processing to where it will go. This is the essence of classification, the power vested in the SRA.  Read more...

Remembering ‘Thrilla in Manila’

October 01, 2014 01:02 AM

By: Alex P. Vidal

“Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even.” – Muhammad Ali

ON October 1, 1975 or 39 years ago, the biggest heavyweight boxing title fight in the world was held at the Araneta Colesium in Cubao, Quezon City. Read more...

Negros News New Banner
Sports News New Banner
Business News New Banner
Community Events new Banner
About Us New banner
Foreign Exchange New Banner
order Newspaper New Banner
Order newspaper
interval banner