SM Prime signs energy pact with MORE Power amid Crisis

By Mariela Angella Oladive

SM Prime Holdings, Inc. (SM Prime) has entered into an agreement with MORE Power Iloilo, the main electric distribution utility in Iloilo City, by signing on to the Interruptible Load Program (ILP) on April 30, 2024.

This strategic partnership aims to address the severe energy crisis affecting the Visayas grid in the Philippines, which has recently suffered from critically low energy reserves, triggering yellow and red alert statuses.

“In times of crisis, it is crucial for businesses to collaborate with utilities and government agencies to ensure the stability of our energy supply,” said Engr. Teodoro S. Bautista, Vice President – Operations, SM Engineering Design and Development, emphasizing the importance of such initiatives during the press conference held last April 25.

The Department of Energy has declared the country’s power situation as critical, marking the agreement between SM Prime and MORE Power particularly timely.

According to forecasts, May is expected to experience rising temperatures and escalating electricity demand, which may worsen the energy scenario.

“We recognize the gravity of the situation and are committed to doing our part in supporting the nation’s energy resilience,” stated Roel Z. Castro, President and CEO of MORE Power.

The ILP is designed to ease the burden on the power grid by having businesses like SM Prime voluntarily reduce their electricity use during peak hours or when grid stability is at risk. This cooperation is key to maintaining energy supply and avoiding blackouts.

“SM Prime’s commitment to the ILP underscores its profound dedication to corporate responsibility and the welfare of the nation. By actively participating in initiatives geared towards enhancing energy resilience, we hope we’re able to encourage other businesses to join in these crucial efforts,” Engr. Bautista added.

The Interruptible Load Program (ILP) is a voluntary, demand-side management program that allows customers to operate their generating sets and collectively reduce electricity drawn from the grid when power interruptions are imminent to ration limited power supply.

The ILP was promulgated under Energy Regulatory Commission (ERC) Resolution No. 8, Series of 2010 and amended by Resolution Nos. 8, Series of 2013 and 5, Series of 2015.

It is open to non-contestable customers, contestable customers, locators in economic and freeport zones, and directly-connected customers.

It also prioritizes customers with large loads and requests them to ‘de-load’ when the National Grid Corporation of the Philippines, which manages the transmission lines, issues a red alert notice due to power supply shortage

The ILP was implemented first in Visayas and Mindanao to ration limited power supply and avert prolonged power outages.