MAP Favors Voluntary ILP, Bucks EPIRA Changes

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With the imminent power crisis by summer of 2015, the Management Association of the Philippines has recommended the urgent implementation of a voluntary Interruptible Load Program (ILP), subject to adequate compensation to the participants, but reiterated its opposition to amending the EPIRA Law. MAP issued this recommendation in view of the imminent acute power supply shortage of about 300-500 MW by summer of 2015. This shortage will be further compounded by the maintenance shutdown of the Camago-Malampaya gas field which will reduce the Ilijan Power Plants capacity from 1,200 MW to 450 MW. In view of this looming energy supply crisis, we in MAP urge the government to aggressively carry out programs which encourage demand side management in the form of energy efficiency measures implemented by everyone to reduce power usage. We likewise recommend the urgent implementation of a voluntary Interruptible Load Program (ILP), subject to adequate compensation to the participants, the statement said. MAP said that only in the event that there is no guarantee that the foregoing measures would adequately address the impending shortage should government be allowed to contract additional generating capacity under Section 71 of the Electric Power Industry Reform Act (EPIRA). However, any contracting of additional capacity must be limited to a period of two (2) years and up to a maximum of 300 MW. We further suggest that a 5-member committee, composed of designated representatives of knowledgeable business groups, be convened to monitor the implementation of Section 71. …