Expected summer increase due to expiration of 120MW Napocor contract
Lyndon Jayme, Veco assistant vice president for utilities and economics, (from left), Ma. Theresa Sederiosa, Veco reputation management manager, and Regional Director Antonio Labios of the Department of Energy share a light moment during a forum about national energy consciousness.
(CDN PHOTO/LITO TECSON)
An official of the Visayan Electric Company (Veco) is warning its customers of an expected increase in power rates by summer next year.
This is because the 120 megawatt (MW) contract with National Power Corp. (Napocor) will expire on Dec. 25 this year, said Lyndon Jayme, Veco assistant vice president for utility and economics, during a forum yesterday.
Jayme said power rates could reach P6.20 per kilowatt hour (kWh) by summer next year.
At present, generation rate is averaging P5.90 per kwh and with the expiration of the contract, which was subsidized, Jayme said additional cost is really possible.
Because of the expiration of the contract, Veco has also started contracting other power sources to ensure we have enough power supply for next year’s expected demand of about 500 MW within the Veco’s franchise area.
“We have already contracted 57 MW from those who bought the Napocor plants, 30 MW additional from CEDC in Toledo and 30 MW from a plant in La Union. We are looking for 40 MW more to contract,” said Jayme.
Department of Energy Regional Director Antonio Labios said about 588 MW of additional supply is also expected to be available by 2015 up to 2017.
He said that supply could help augment any supply shortage especially that the Luzon grid is projected to experience power supply shortage next year.
Veco reputation management manager Ma. Theresa Sederiosa also assured there is enough power for their 370,000 customers this Christmas with peak demand expected to reach 455 MW to 460 MW from current level of 450 MW.
The officials all urged everyone to still take part in power conservation saying that a lowered demand can result to lower power rates.
As of yesterday, Labios said that major power lines in the northern part of Cebu from Compostela to Daanbantayan were already restored and that the distribution utilities are just checking on lateral lines going to the individual households.
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