DOE asks SPEX to explain Malampaya ‘restrictions’ of gas to power plants

Department of Energy Secretary Alfonso G. Cusi has asked Malampaya Natural Gas Field Consortium operator, SPEX to explain to the public the gas restrictions that affected the delivery of fuel to the natural gas power plants.

“These restrictions affect the electricity prices that consumers pay and they will have to be informed on the causes of price increases,” Cusi stated.

The Department of Energy (DOE) received information from the Malampaya Consortium operator that the gas restrictions will be lifted by today. However, higher prices may already adversely impact the consumers.

While the DOE already promulgated a ‘no pass-on’ provision in the 2018 CSP Policy, these contractual arrangements are covered by previous power supply contracts signed by MERALCO.

“MERALCO’s notification to the public, through its spokesperson, requires more details. Are these part of the previous contracts that it signed with suppliers? Perhaps it can also suggest to consumers on additional information to help alleviate their plight,” Cusi advised.

In the meantime, Cusi asked IEMOP to simulate the impact on prices of these gas restrictions, as well as the upcoming Malampaya maintenance shutdown (where there will be no gas production) that is scheduled to occur from 2-22 October of this year.

“While there is sufficient supply of electricity during this period, consumers need to know the effects of all these to their power bills,” Cusi explained.

The DOE is set to call a coordination meeting with the consortium operator, natural gas power plants, MERALCO and market operator, among the other industry players, to address all these issues and the upcoming 2-22 October Malampaya maintenance shutdown.