A legislator has expressed grave concern that mainland Luzon faces acute power shortage as a result of prolonged dry spell brought about by the El Niño phenomenon.
Meanwhile, reacting to hints about the cancellation of its franchise, Meralco asserted that it has submitted all pertinent documents as required by government regulators. In a statement, Meralco said it has submitted copies of transmittal letters, acknowledged by the House Legislative Franchises Committee Secretariat, showing the company submitted reports of its finances and operations from 2002 onwards.
“We would urge the House committee on energy to look into the potential adverse impact of prolonged below normal rainfall conditions on hydroelectric power plants in Luzon,” Quezon City Rep. Marvin Rillo said in a statement on Sunday.
“Grid-connected, dam-type impounding hydro, pumped hydro, and run-of-river power plants currently supply around 13.9 percent of Luzon’s dependable generating capacity,” Rillo pointed out.
Hydroelectric power plants contribute a total of 2,416 megawatts (MW) to the Luzon grid, according to Rillo, a member of the House Committee on Energy.
Hydropower relies on the constantly recharging system of the water cycle to produce electricity.
Last month, the country’s two largest power distributors – Manila Electric Co. and Aboitiz Power Corp. – warned that even without the El Niño threat, Luzon’s power supply would remain tight in 2024, with no baseload capacity added to the grid while demand is expected to continue growing.
In an advisory issued Dec. 6, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) said the “strong El Niño has further intensified, nearing its peak in the coming months.”
By the end of December, Metro Manila is expected to experience a “dry condition” while Cavite is bound to reel from a “drought,” according to Pagasa’s El Niño Advisory No. 6.
Meanwhile, at least 18 provinces in Luzon are likely to experience a “dry spell” by the end of December: Benguet, Ifugao, Kalinga, Apayao, Mountain Province, Ilocos Sur, La Union, Pangasinan, Cagayan, Isabela, Nueva Vizcaya, Quirino, Bulacan, Nueva Ecija, Pampanga, Tarlac, Aurora, and Palawan, the weather bureau said.
Along with Metro Manila, five other provinces in Luzon are likely to experience a dry condition by the end of December: Abra, Ilocos Norte, Bataan, Zambales, and Occidental Mindoro, the agency added.
A dry condition means two consecutive months of below normal rainfall condition, or 21 percent to 60 percent reduction from average rainfall. It is also defined as three consecutive months of below normal rainfall condition, or 21 percent to 60 percent reduction from average rainfall.
Drought means three consecutive months of “way below normal rainfall condition,” or greater than 60 percent reduction from average rainfall.
Based on Department of Energy (DOE) data, Rillo said the Luzon grid-connected operating hydroelectric power plants and their corresponding dependable generating capacities cover a network of at least 13 such facilities.
These are the Kalayaan PSPP in Kalayaan, Laguna (720 MW); San Roque in San Manuel, Pangasinan (404 MW); Magat in Ramon, Isabela (345.6 MW); Casecnan (NIA) in Pantabangan, Nueva Ecija (150 MW); Binga in Itogon, Benguet (138 MW); Pantabangan in Pantabangan, Nueva Ecija (120 MW); Ambuklao in Bokud, Benguet (105 MW); Bakun AC in Alilem, Ilocos Sur (59.4 MW); Caliraya in Lumban, Laguna (35 MW); Botocan in Majayjay, Laguna (22 MW); Angat Aux in Norzagaray, Bulacan (18 MW); Sabangan in Sabangan, Mt. Province (15 MW); and Masiway in Pantabangan, Nueva Ecija (12 MW).
In its December forecast, Pagasa said none of the provinces in the Visayas and Mindanao are at risk of a dry condition, a dry spell, or a drought.
Meralco also maintained that it provides an annual report yearly to SEC, PSE and is uploaded in its website as it is a public document.
Surigao Del Sur Rep. Johnny Pimentel said the cancellation of Meralco’s franchise loomed as the utility failed to submit annual financial and operation reports requires by the law—Republic Act 9209–which granted the franchise.
Pimentel said records would show that Meralco submitted reports only for 2018 to 2022.
“The financial report is different,” Pimentel said during recent public hearing conducted by the House committee on Legislative Franchises on the privilege speech of Laguna Rep. Dan Fernandez who called for the split of Meralco’s mega-franchise for allegedly overcharging its customers and violating its franchise granted by Congress.
“If you did not submit your reportorial requirement for these years, then well, basically, you have already violated Section 14 of Republic Act 9209,” he added.
Non-compliance with the law is ground for franchise cancellation or revocation per Republic Act 9209, or “An Act Granting The Manila Electric Company A Franchise To Construct, Operate And Maintain A Distribution System For The Conveyance Of Electric Power To The End-Users In The Cities/Municipalities Of Metro Manila, Bulacan, Cavite And Rizal, And Certain Cities/Municipalities/Barangays In Batangas, Laguna, Quezon And Pampanga.”
“It is very clear in Republic Act 9209 that the submission of reports should be done on a yearly basis. Now as stated by the ComSec(Committee Secretariat), they submitted only for several years,” he said.
A check made in the records showed that Meralco complied with the reporting requirement only seven times since getting its franchise in 2003.
As Meralco’s franchise is already 20 years old, Pimentel said a total of 20 reports should have been submitted as required by the law.
“For the record, you have submitted only seven reports,” Pimentel said.
He asked Meralco representatives present why Its franchise should not be cancelled in the wake of the violations.
Meralco representatives said they would try to reconcile the records.
Pimentel said this was an admission of uncertainty over whether the records have been submitted in compliance with the law.
Rep. Fernandez has urged Congress to split the mega-franchise of Meralco into three, accusing the monopolistic utility of failing to serve the interest of 7.6 million subscribers and overcharging them in the last nine years.
In a privilege speech last month, Fernandez said since Meralco has grown too big and dominant in the power industry, a review of its franchise to pave the way for its split into three was timely.
“It’s high time we renew its franchise to pave the way for the split of the mega-franchise we granted Meralco,” said Fernandez in the speech.
“If possible, we can split it into three franchises since Meralco actually operates in three sectors in Luzon— NCR (National Capital Region), South Luzon (Calabarzon) and North Luzon sector of Pampanga and Bulacan,” he added.
In his speech, the Laguna lawmaker also said Meralco now controls at least 70 percent of Luzon’s electricity output that it is able to also manipulate the operations of power producers and sellers.
Because the franchise is too big, Fernandez said Meralco has already, in effect, divided it up to be able to manage it.
With 60 percent of the country’s gross domestic product coming from NCR, Fernandez said Meralco can manipulate the Philippines’ economic growth by having full control of electricity in Luzon.
“They are monopolistic,” Fernandez said.