Good morning. Please see attached letter to DOE which is self explanatory as well as pro consumers.
This waa sent by email to Usec William Fuentebella today .
This is labelled as LKI Press Statement 2021-029, August 2 , 2021.
02 August 2021
FELIX WILLIAM B. FUENTEBELLA
Undersecretary, Department of Energy
Taguig City
Subject: A 220 MW power supply at Php 6.00 pkwh
Dear Undersecretary Fuentebella;
As early as June 6, 2021, our consumer advocacy group, the Laban Konsyumer Inc. is pushing for an independent investigation into the brownouts that hit the country and proposed that the Anti –Red Tape Authority take the lead.
We proposed ARTA due to the inordinate delay in the approval of a pending power supply agreement of 220 megawatts in DOE in order to mitigate the high Wholesale Electricity Spot Market for the rest of the summer that peaked at P 16 per kilowatt as against the Php 6 pkwh (June 6, 2021, Manila Times).
Thus , we would like to clarify from the Department of Energy’s (DOE) recent pronouncement that it was unlikely to favor and grant the petition of a Php 6 pkwh interim power supply agreement , an amount that is the least cost and much cheaper than any of the renewable energy resources developers .
We understand that there is legal basis under existing DOE rules that negotiated procurement of emergency power supply is authorized provided that the rate shall not be higher than the latest ERC approved generation tariff for same or similar technology in the area. While spot market prices has softened in the recent weeks, the power supply agreement is needed during the 20-day Malampaya shutdown in October this year and the extra supply can extend even in the national elections in May 2022.
We hope the DOE would reconsider its dispositions on the pending petition, as it shields consumers from experiencing rotational brownouts and from paying higher electricity costs due to exorbitant WESM fees brought about by supply shortfalls.
Thank you very much.
Very truly yours,
ATTY. VICTORIO MARIO A. DIMAGIBA, AB, LLB, LLM
President, Laban Konsyumer Inc. on