IN THE FACE of potential power supply disruptions, the Department of Energy (DOE) is taking decisive action to safeguard the interests of the customers of power distribution giant Manila Electric Co. (Meralco).
The spotlight is on the critical 1,200-megawatt power supply agreement (PSA) with Excellent Energy Resources Inc. (EERI), as delays in plant commissioning threaten the stability of electricity supply.
The DOE’s proactive engagement with Meralco underscores its commitment to ensuring that consumers have access to reliable and affordable power. Recent developments have raised alarms about EERI’s ability to meet its obligations, particularly as issues with plant readiness and fuel supply could lead to significant power gaps for consumers.
In a recent press conference, DOE Assistant Secretary Mario Marasigan expressed urgency regarding the situation. “It is imperative that EERI begins operations as stipulated in the PSA,” he said, highlighting concerns that not all units are functioning at full capacity.
Originally slated to deliver power by August 2025, EERI’s ongoing challenges raise questions about the feasibility of this timeline.
The situation is further complicated by delays in the operation of EERI’s Linseed LNG facility, which has pushed back the expected start date for its primary storage unit to the end of June. This postponement casts doubt on EERI’s capacity to fulfill its contractual obligations to Meralco, leading to a potential crisis in power availability.
Marasigan warned that if EERI’s facilities remain in testing and commissioning, “we could face serious power supply gaps.” Such gaps could force Meralco to seek alternative power sources, potentially at a higher cost, which would ultimately affect consumers’ electricity bills.
The DOE is also emphasizing the importance of the Competitive Selection Process (CSP) for distribution utilities.
Undersecretary Felix William Fuentebella reiterated that distribution utilities must secure the most cost-effective power to protect consumers from rising electricity prices.
He cautioned that further delays in power delivery could disrupt market dynamics, leading to significant cost increases for consumers.
As the DOE closely monitors the situation, it is engaged in ongoing dialogues with Meralco and other distribution utilities. These discussions aim to prevent regulatory challenges and ensure that the interests of consumers remain a top priority amidst pressing challenges in the energy sector.
The DOE’s vigilant oversight reflects a broader commitment to consumer protection in an evolving energy landscape. As the agency navigates these complexities, its focus remains clear: to ensure that Meralco customers receive stable, reliable, and affordable electricity.
With timely action, the DOE aims to mitigate risks and uphold the interests of the public, reinforcing its role as a guardian of consumer welfare in the ever-demanding energy market. (JLN/PIA-NCR)
