Power Crisis: Where do we go from here?

(Rally in Boac: loud and clear message for all the world to see - photo: dan pagulayan)

Should it be cause for concern? “Generation deficiency” was cited by Manila Electric Company (Meralco) as behind the rolling power outages the other day in Metro Manila and other areas in the Luzon grid. The rotating brownouts were reportedly triggered by the forced outage of the 1,200 MW Sual coal-fired power facilities in Pangasinan.

Normal power situation is back in the areas that were affected, but Manila Bulletin reports, thus:

“The power supply situation in the Luzon grid could face “more critical condition” in the coming days with the scheduled maintenance shutdown of the Malampaya facility. Shell Philippines Exploration B.V. (SPEX) confirmed in a text message that Malampaya will be shut down for 30 days starting February 10.

“The reduced contribution of the coal plants is being exacerbated by low availability of electricity from hydroelectric plants because of the El Nino phenomenon.

With the critical power situation, industry players are calling on the government, particularly the Department of Energy, to draw up precautionary measures before the situation gets out of hand.” (Myrna M. Velasco,1.25.2010 mb.com.ph)

Hmm. Maintenance shutdown. El Nino. What next, then?

Reprise:

As regards Marinduque and to refresh one's memory, the critical power situation here has been repeatedly taken up over a period of two years in many official hearings called by the provincial council, Sangguniang Panlalawigan, that even included an “energy summit”. By mid-September last year the local power institutions have decided as temporary measure to ship to Marinduque from Palawan surplus gensets covered by an unexpired lease agreement between Napocor and a power supplier.

The people’s cry culminated in a church-initiated “truth and transparency” rally headed by the Bishop of the Diocese of Boac, triggered by massive power outages that worsened over a three-month period.

With the arrival of the gensets on October 25, 2009, came publicity stunts staged by grandstanding politicians claiming “final solution”, mum about the short-lived lease-agreement that was set to expire by January 7 or ten weeks later.

(Talk-talk-talk at the NPC Diesel Power Plant in Boac)

With power generation somehow stabilized during the brief Christmas period, even the loud warnings and explanation by SP board member Jose Alvarez, that "everything’s temporary" was largely watered down as expected. Relative calm and peace followed, it was holiday season, let's just say.

With our short memories, quite a few within the power institutions have become even more emboldened now to maintain the electric coop’s “don’t touch us” policy, returning to the cycle of mouthing the same old stories. Their political patrons must be chuckling tounge in cheek.

Needless to say, recommendations and agreements concluded during official meetings have come to naught, it appears.

(The power plant in Balogo as it looks today - single word repeated on yellow ribbon)

Bankcrupt NPP - As admitted by 3i Powergen before the SP body, supported by Marelco, and accepted by SP, said New Power Provider (NPP) is no longer in a capacity to pursue the project due to bankruptcy. How long will the contract rescission process take?

Registration with Cooperative Development Authority (CDA) – Registration with CDA would ensure Marelco’s independence and freedom from control by any agency or political entity, and would exempt it from payment of taxes (VAT, real estate, etc). The provincial government and the local Church have openly espoused Marelco’s registration with CDA. (Marelco admitted that its contract with 3i Powergen was not known to consumers until after signing and was made known to the public only when problems began to surface).

Marelco is also not registered with SEC, therefore not a stock cooperative nor does it operate like one. Hearings revealed that involvement of consumers is limited to attending raffles disguised as “annual meetings” and paying bills.

Officials and Marelco management apparently have it so good at present, they’re not bent on the idea of Marelco registration with CDA and will thwart efforts along this line more defiantly if need be. The issue is control at public expense.

Interim Power Supply Agreement - The signing of an Interim Power Supply Agreement between Marelco and Napocor covering a specific period, one year, two years, three years, whatever, that would ensure uninterrupted power supply, should already be in place by now.

After which, the energy stakeholders could entertain NPP’s, and there are several, who have expressed willingness to offer solutions to the Marinduque situation. To see new power providers in place could take two more years, we must not forget.

(Some names in the Marinduque power saga)

Yes, indeed, there are moves being undertaken by those wishing to lead us to the light at the end of the tunnel, but decidedly at an extremely slow pace. A situation only made worse by smaller fries bent only in keeping their positions intact as they play along with the same power wielders, in the same old rotten way of wheeling and dealing in Marinduque - handed down from one generation to another.

Something really rotten. Endlessly talked about but often hushed by the application of pressure or the color of money or a piece of the pie or all of these.