DOE allows Albay’s power firm to buy cheaper electricity

SETTING DOWN Legazpi City lights up during sunset with the background of the majestic Mayon Volcano. Residents of the city and other areas in Albay can expect lower electric cost until December after the Department of Energy allowed the local power distributor to source energy outside of the Wholesale Electricity Spot Market. —MARK ALVIC ESPLANA

LEGAZPI CITY, Albay, Philippines — Albay consumers can expect lower electric bills in the coming months after the Department of Energy (DOE) allowed Albay Power Energy Corp. (Apec) to source its energy requirement outside of the Wholesale Electricity Spot Market (WESM).

Energy Secretary Alfonso Cusi on Friday granted Apec a negotiated emergency power supply agreement (Epsa) to procure 40 megawatts from other power providers from June 26 to Dec. 25.

This means that Apec can now scout for other power suppliers to participate in the bidding for the 40-MW power supply requirements of Apec, Albay Rep. Joey Salceda said.

WESM, created under the Electric Power Industry Reform Act of 2001 and governed by Philippine Electricity Market Corp., is where electricity is traded at prices agreed upon by the power suppliers. It will require DOE approval for utility companies like Apec to buy power outside of WESM.

Lower price

Lesley Capus, head of Apec’s internal relations and customer support department, welcomed the DOE decision as it would now allow them to provide a stable and cheaper power supply to residents of Albay, which has been hit by power failures in recent months.

“With such favorable decision, we can assure our 207,597 customers in Albay that we can secure a stable, reliable, and affordable supply of electricity from the San Miguel Energy Corp. (SMEC),” Capus said in a statement on Saturday.

He said the average price under the Epsa was around P5.4750 per kilowatt-hour compared to the average WESM price of P6.8513 per kWh. Currently, WESM price is at P12.84 per kWh, which is twice as much as SMEC’s price of P6.70 per kWh.

Apec, a private concessionaire for Albay Electric Cooperative, covers all 15 towns and three cities of Albay.

The firm is also saddled by various operational and technical problems, such as unpaid bills from 53,000 consumers, system losses caused by rampant power pilferages, and antiquated transmission lines and stations.

Capus said the firm was losing some P142 million a month due to system losses and nonpayment of bills.

—MAR S. ARGUELLES