ILOILO City – The blackout that hit Western Visayas on April 27 and 28 should never happen again, according to the Iloilo City Business Development Council (ICBDC). While power was restored on Sunday, it fears of more such occurrences in the future.
The causes of the two-day widespread power failure must be addressed, the ICBDC stressed, calling the matter a “grave concern” for the business community because a recurrence would have “adverse effects on our local economy.”
“These disruptions in power supply have resulted in operational challenges, financial losses, and a tarnished reputation for our city as a reliable business destination,” according to Engineer Terence Uycongco, ICBDC co-chairman.
The unannounced power interruption affected the whole Panay Island and reached even Negros Occidental. Rotational brownouts were implemented until power was fully restored yesterday, April 30.
Many businesses were forced to temporary close. City hall employees went out early and some classes were dismissed early, according to the ICBDC.
Sunday’s the resumption of power, however, has not placated the business community.
“The Iloilo City Business Development Council emphasizes the urgency of this matter and urges all stakeholders to actively participate in our efforts to find immediate and lasting solutions,” said Uygongco.
The ICBDC proposed some actions to be taken, starting with identifying the cause of the blackout and frequent brownouts.
It called for a “comprehensive investigation to determine the underlying reasons.”
This, according to the business group, will enable those concerned to develop targeted and effective solutions to prevent future occurrences.
Power distributors in Iloilo – the Iloilo Electric Cooperative 1, 2 and 3 and MORE Electric and Power Corporation – denied being the cause of the power failure and pointed to the National Grid Corp. of the Philippines (NGCP) which is the government franchisee to operate, maintain and develop the country’s state-owned power grid, and controls the supply and demand of power.
ICBDC also pressed for active dialogue among power suppliers, businesses and relevant government agencies.
“By fostering collaboration and sharing expertise, we aim to explore and implement strategies that enhance infrastructure, promote energy efficiency, and establish robust contingency plans to mitigate the impact of brownouts,” according to Uygongco.
The group further pushed for policy changes that prioritize a reliable and affordable power supply but gave no specifics other than streamlining licensing procedures for power generation projects and fostering healthy competition within the power sector.
“A resilient and conducive business environment,” according to ICBDC, will ensure “the sustained growth and success of Iloilo City.”
NGCP warns of power outages during summer
In March, NGCP warned of intermittent power interruptions during the summer months after the Energy Regulatory Commission (ERC) denied its request for month-on-month extensions of its existing ancillary service procurement agreements (Aspas) while the latter conducted bids for new deals.
NGCP has sought the intervention of the Department of Energy (DOE) in securing approval from the ERC for extensions of the ancillary service deals.
Ancillary services support the transmission of power from generators to consumers to maintain reliable operations.
NGCP noted that these services were crucial in managing power fluctuations to ensure the quality and reliability of power flowing through its system. Without the ERC’s approval, the NGCP warned of increasing power fluctuations in the national grid.
“NGCP considered these extensions as a middle ground strategy to remain compliant with the relevant DOE circulars, while at the same time preserving the integrity of the transmission grid with the continuous provision of [ancillary services], especially during the summer months when it is needed the most,” it said in its March 25 letter to Energy Secretary Raphael Lotilla.
Given the nature of regulatory processes and applications, the NGCP said provisional approval for new Aspas might not be expected earlier than June.
The ERC ruling, promulgated on Dec. 12, 2022 but released to the NGCP only on March 22, 2023 said the DOE, through Department Circular No. 2019-12-0018, only allowed the procurement of ancillary services through firm contracts and not month-on-month agreements.
The NGCP argued, however, that the DOE circular only covered new Aspas and not existing deals.
“With the ERC’s denial of this interim arrangement, our hands are tied. The Philippine transmission grid shall be vulnerable to power interruptions resulting from an artificial lack of [ancillary services]. Without an existing Aspa, NGCP cannot nominate power plants to provide the critical services,” the NGCP said in a statement.
“Unless the ERC withdraws its order, … the Philippine grid will unnecessarily be vulnerable to [automatic load dropping, or ALD], caused by the artificial lack of ancillary services,” it added.
ALD refers to unexpected power interruptions caused by the deliberate removal of preselected loads from a power system due to abnormal conditions. (With a report by Meg J. Adonis, Philippine Daily Inquirer)/PN
