Regulators start widening ILP coverage

by Riza Olchondra, 19 March 2015
from Philippine Daily Inquirer

MANILA, Philippines–The Energy Regulatory Commission is set to issue the rules expanding the Interruptible Load Program (ILP), a mechanism that is hoped to enable Luzon to cope with the anticipated tightness in power supply this summer.

The expansion of the ILP coverage is being undertaken even as lawmakers have yet to reconcile compensation issues under the program.

ERC executive director Francis Saturnino C. Juan told reporters that the quasi-judicial body was moving ahead with the amendments to existing ILP rules.

Juan said the changes would accommodate contestable customers and those directly connected to the grid, as well as locators in the economic zones with self-generating facilities.

“The original ILP design was only for the captive customers or those that are directly served by distribution utilities like Meralco (Manila Electric Co.),”  Juan said.

The changes will pave the way for the participation of National Grid Corp. of the Philippines and other power retailers besides Meralco, Juan said.

The inclusion of more ILP participants will improve the program’s capacity to ease peak demand in the Luzon grid, thus lessening the possibility of outages.

The official further explained that deliberations were completed and the final resolution amending the rules would soon be issued by the ERC.

The resolution will be published in about a week, he said.

The expanded rules would not only help address the power reserves shortage in the Luzon grid but would also apply to Visayas and Mindanao, Juan said.

Lawmakers have not finalized the joint resolution for special powers to be given to President Aquino to deal with the power crisis. The joint resolution will indicate whether the government will pay for the compensation of ILP participants or make it a pass-through charge.

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