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HOPING
to make more of its customers benefit from its sourcing
of its power requirements from the spot market, the
Manila Electric Co. (Meralco) on Thursday sought a
clarification on whether it could buy more than the
prescribed 10 percent of sourcing from the Wholesale
Electricity Spot Market (WESM). It sought to clear this
during a stakeholders’ meeting at the Department of
Energy (DOE).
“We are
actually confused, we want to be enlightened if we can
buy more than the prescribed 10 percent from WESM at
times when prices are low,” Jesus Francisco, Meralco
president, said.
The
Meralco official said their lawyers tell them that the
Electric Power Industry Reform Act (Epira) clearly
states that all distribution utilities should buy at
least 10 percent from WESM.
Francisco said there are times when Meralco is being
told to purchase more than the prescribed 10 percent
from the WESM—especially when power rates are low.
If they
are allowed to buy more from the WESM—when prices are
lower—that would be the only time they will be able to
reflect lower costs for consumers.
“We want
to make it clear, because if we can buy more from the
WESM, that will result in lower costs to our customers;
then by all means we will do it,” Francisco said.
At the
same time, Francisco said they have always wanted to
point out they’re doing everything they can to reduce
system losses.
He
explained that when they go above the 9.5-percent cap
set by the power distribution code—the excess to the cap
becomes a cost to the company.
Every
percentage excess in the system loss cap, according to
Francisco, costs them probably billions at today’s cost
of power.
“So it
would be foolish of us not to go after pilferage and
that’s why we spend P300 million for antipilferage
activities,” said Francisco.
The
Meralco official said they hope to bring down the level
of system loss this year. Any benefit from going below
9.5 percent has to be passed through to customers—and
the Energy Regulatory Commission is always looking at
the company to make sure that reductions in system
losses are passed through to consumers,” Francisco said. |
