No nationwide power shortage expected next year, Senate told

THE Department of Energy (DOE) does not foresee a power shortage or any prolonged power outages in any part of the country next year, Sen. Sherwin Gatchalian said yesterday as he sponsored the agency’s proposed P2.59 billion budget for 2024.

Gatchalian said there is “dependable” energy capacity in Luzon, Visayas and Mindanao, as forecast by the DOE.

“So, for 2024, we don’t see any probability of brownouts or load dropping in Luzon… In short, Luzon, Visayas, and Mindanao will not experience brownouts for 2024,” Gatchalian said during the plenary discussions on the agency’s proposed budget.

Citing data from the DOE, he said installed capacities for Luzon stands at 19,757 megawatts (MW); 3,972 MW for the Visayas; and 4,570 MW for Mindanao.

Gatchalian made the assurance after Senate minority leader Aquilino Pimentel III inquired about the status of the country’s energy supply and demand for electricity.

“Given our dependable capacity with our demand for energy, we don’t have an energy shortage or an unanticipated energy shortage? Can we say that?” Pimentel said.

In response, Gatchalian presented a DOE graph which showed no yellow or red alerts in the three major islands for 2024.

The DOE’s proposed budget next year was submitted for plenary approval early yesterday.

Meanwhile, in a statement, Gatchalian expressed confidence consumers will soon enjoy lower power transmission fees once the Energy Regulatory Commission (ERC) completes its review of the National Grid Corporation of the Philippines’ (NGCP) performance and operation from 2016 to 2020.

The ERC, in its partial review report, adopted a weighted average cost of capital (WACC) of 10.71 percent, which is significantly lower than the existing WACC of 15.04 percent. WACC is an input in the determination of the NGCP’s transmission rates.

“The ERC’s adoption of a lower WACC is a welcome development. I am hopeful that this development would translate to lower transmission rates passed on to consumers,” Gatchalian said.

The ERC also capped the revenue that NGCP is allowed to generate at P36.7 billion a year, identifying certain disallowances in the determination of its operation expenses.

Specifically, the ERC