Gas plant shutdown to increase power bills

THE Energy Department on Monday assured the public it is preparing to minimize the impact of the impending 20-day shutdown of the Malampaya gas to power plant early next year.

Energy spokesman Felix William Fuentebella said the shutdown from January 28 to February 16 may have an impact on power supply that could trigger higher electricity prices.

Fuentebella said the department will pursue “coordination to ensure sufficiency” of supply during the affected period.

The Malampaya shutdown is seen to affect supply to three power plants namely Sta. Rita, San Lorenzo and Ilijan with a combined capacity of 2,700 MW.

“There will be [price] simulation first. Then we will look into coordination, market and regulatory management,” he said.

Fuentebella said they will finalize projects but “no more than 2000 MW [of capacity] maximum worst case” shall be affected by the shutdown.

He said the department will hold a stakeholders meeting this coming Thursday to address all issues concerned.

Power prices went up significantly during the Malampaya shutdown in November 2013 which led to reforms in the Wholesale Electricity Spot Market.

The Malampaya gas project in northwest Palawan is operated by Shell Philippines Exploration B.V. which undergoes regular maintenance.

Aside from Spex, other consortium members of the Malampaya project includes Chevron Malampaya LLC and PNOC Exploration Corp., the exploration arm of state owned Philippine National Oil Co.

Topics: Department of Energy , gas plant shutdown , Malampaya gas , increase power bills
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