Interruptible Load Program participation of JFC member firms

Categories: AnnouncementsPolicy News and Updates

Date Posted: 20 Aug 2014

To Anzcham members,

Blackout seem almost inevitable next year unless something more serious, and urgent is done. We believe blackouts can be avoided by reducing power consumption – if everyone participates.

To that end we have developed a report – LET THERE BE LIGHT – (attached) detailing many things you can do. But perhaps the most impactful would be to use your own generator during times of imminent blackouts. This is called the Interruptible Load Program (ILP). The Interruptable Load Program (ILP) is one of the available instruments to help ease the anticipated power supply deficit. The ILP calls on industry players with relatively large stand-by generators in their offices or plants to run these during peak hours for about 10 hours a day, being paid for the variable costs plus a fair mark-up.

Targeted ILP contributors are electricity consumers with large embedded generation capacities of at least one MW. De-loading compensation paid to ILP participants will be recovered from all customers of the district utility as part of its total cost of power to be included in its monthly computation of generation rate. PCCI pointed out that the impact of the program to the general consumer is less than a centavo per kWh. Meralco cited that for the 16 May application when Metro Manila had experienced short power supply, de-loading compensation amounted to about PhP 300,000, translating to an additional cost of two centavos on the monthly bill of customers consuming 200 kWh and sparing 50,000 households from the one-hour rotating blackouts.

At present Meralco has about 115 MW committed to the ILP and hopes to reach at least 500 MW.

Contestable customers, however, are impeded to participate in the program which is available only to the captive market. The Retail Electricity Suppliers Association (RESA) and Meralco are in the final stages of discussions on creating a possible mechanism that will allow contestable customers under RESA to contribute to the ILP. The Department of Energy in coordination with RESA and Meralco will conduct a series of consultative talks to explain the final working mechanism and solicit inputs on how to make the program viable to the contestable market.

If you have a large (over 1MW) generator could you please join the program by first registering with the Secretariat at policy@anzcham.com.
With best regards,

Peter Wallace

 

Attached – Let There Be Light report 

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