ENERGY Secretary Sharon Garin on Monday said the country‘s power outlook for April is stable, even as the war in Iran could still cause electric bills to spike.
Though the Philippine grid is not dependent on liquid fuels for energy, prolonged conflict in the Middle East could lead to a surge in demand on other fuels, Garin pointed out.
The war began on Feb. 28 when Israel and the United States launched coordinated surprise air strikes on Iranian military, nuclear and leadership targets. Iran has retaliated by bombing US bases in Gulf states and shipping lanes, stoking fears of a broader Middle East war and disrupting global oil supplies.
“We are [looking at] measures to help prevent or mitigate a scenario where electricity prices could go up in April because of pressures on the fuels that we mostly use, [such as] coal and natural gas,” Garin said at a media briefing.
“Liquefied natural gas (LNG) is also affected, so we have to somewhat control importation, but we have the Malampaya gas plant so that shields us from the price impact. Instead of diesel, it looks like we will have to use more coal for now. ... We are trying to find a temporary right mix in the situation we are in right now,” Garin explained.
Last week, Energy Regulatory Commission (ERC) Chairman and CEO Francis Saturnino Juan said power costs could go up by P2 to P4 per kilowatt-hour (kWh) in April if the war in Iran continues, and also because electricity demand is higher in the dry season, not to mention unscheduled outages at power plants.
