Subic locators warn power crisis may spread outside Mindanao

Subic Bay

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MANILA, Philippines - The Subic Bay Freeport Chamber of Commerce is worried that Mindanao's power crisis may spread to Luzon if the government fails to fast-track investments in the energy sector.

“The Mindanao crisis is proof that there is shortage of power in the Philippines. There is no longer any doubt that the same will happen in Luzon if the rehabilitation of existing generation plants and building of new ones do not get accelerated,” said Danny Piano, president of the Subic chamber.

“To put this looming problem in perspective, imagine the majority of 90,000 workers inside the Subic Bay Freeport out of work for hours on end during extended brownouts. A number of companies operating 24/7 will be worst hit since it will be more difficult for them to work around brownouts. Not only manufacturing companies, service companies especially those that are tourism-based will be severely affected as well,” he said.

Piano said this would throw back Luzon to the 1990s when a severe power shortage resulted in blackouts lasting up to 12 hours a day. The government was forced to enter into expensive power purchase agreements with third parties, the cost of which consumers have been paying for to this day.

He said one of the plants re-commissioned back then was the 100-megawatt bunker diesel plant left by the US Navy inside the Subic Freeport. This facility became operational in 1994. 

“It is now a backup and peaking plant meaning it usually operates only during peak periods and emergencies. The rates are, however, quite expensive and made even higher by the current high prices of petroleum. It will definitely increase the cost of doing business. But even at full capacity operation, the diesel plant will not be sufficient to support the constantly increasing power needs of the Freeport and surrounding areas,” he said.

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