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Sunday, May 07, 2023

Energy 170, Electric cooperatives and NPC

Here are some photos of the presentations by speakers from electric cooperatives (ECs) and the National Power Corp. (NPC), at the Philippine Electric Power Industry Forum (PEPIF) 2023 last March 20-21 at Diamond Hotel, sponsored by the Independent Electricity Market Operator of the Philippines (IEMOP).

Vulnerability to electricity price fluctuations is experienced by all -- generation companies (gencos), ECs, distributors, consumers, etc. But he is right that the lack of interconnection capacity among islands (Iloilo-Negros-Cebu, Leyte-Bohol, Mindanao-Visayas) is another reason for imbalance in power supply-demand in some big islands. 


This problem is not unique to ECs, also experienced by private distribution utilities (DUs) and retail electricity suppliers (RES). ECs cannot argue that they are singled out.


I doubt if it's really "people's ownership", more of EC bureaucrats and financiers' ownership. Consumers in many ECs franchise area on average are charged higher than consumers of private DUs.


Actually it is the taxpayers who are the ultimate losers. When ECs lose money due to wastes, corruption or plain inefficiencies, they run to the National Electrification Agency (NEA) and NEA goes to Congress to ask for taxpayers money to bail out the losing ECs, and Congress gives money from taxpayers.


The NPC guy. I still believe that subsidy for missionary electrication -- paid by consumers of all on-grid islands from Aparri to Zamboanga -- should end. Off-grid islands must have their own big power plants aside from gensets running on diesel. Preferably small coal or gas plants, or small modular nukes (SMRs).

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