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Private sector participation of the interruptible load agreement (ILA) is dwindling due to the inability to sustain the cost of operating their own generator sets.
The Visayan Electric Co. (Veco) is looking for ways to make the compensation package attractive to the 10 companies so they will continue supporting the program which has helped cushion impact of the power shortage.
The support of the private sector is also critical considering that power demand is expected to go up with the Yuletide Season.
Lyndon Jayme, Veco's Aassistant Vice President for the Utility Economics Group, said some companies had reduced their contributions to the ILA due to the cost of operating their generator sets.
“Their generator sets also need a break because they have been operating these since March when we started the program. Also, they were saying that the compensation was not enough and they have run out of fuel,” he said.
Jayme was among the Veco officials who attended the meeting called by Cebu Gov. Gwendolyn Garcia at the Capitol to discuss Cebu’s power shortage. Also in the meeting were businessmen and members of different chambers of commerce.
Veco made a power point presentation on their implementation of the ILA during the two-hour meeting held at the old capitol session hall.
After the Veco presentation, Garcia said that reduction in ILA participation is a “cause of worry”.
“The consumers may not have known it but it (the power shortage) may have been worst, like what others parts of the Visayas is now experiencing, if not for the ILA participants,” Garcia said.
She said that unless private companies capable to self-generate power make some sacrifices, Cebu City and the rest of the Veco franchise area may suffer from blackout which would bring a negative impact on businesses.
Jayme said they get 15 megawatts to 18 MW from the ILA participants which helps cushion impact of the power shortage in Cebu.
Veco needs to source of 40 to 50 MW of power during a shortage in the Cebu-Negros-Panay (CNP) grid.
In the absence of alternative power sources, the distribution company is forced to implement rotation brownouts in their service areas, said Ricardo Lacson, Veco VP for administration.
Hour-long rotation brownouts are especially felt during Veco peak hours-- from 9 a.m. to 11 a.m., from 2 p.m. to 4 p.m. and 6 from p.m. to 9 p.m.
Veco created ILA to cushion the impact of power shortage especially on households. Ten companies have signed up since March and agreed to deload from the grid and use their own generator sets.
