CAUSE-oriented and climate groups have questioned the latest report that the Mindanao-Visayas Interconnection Project (MVIP) would have the effect of lowering electricity rates in Mindanao.
David Tauli, president of the Lanao Power Consumers Federation, Inc. (Lapocof), told Gold Star Daily that the effect of the operation of the MVIP would be an increase in the transmission rates by at least ten centavos per kilowatt-hour which will be paid for by all electricity consumers in the country. The MVIP is also known as the Leyte-Mindanao Interconnection Project.
“The reason why the MVIP will not affect rates for the generation of power plants is that it will not be used to transfer bulk power from Mindanao to the Visayas nor vice-versa,” Tauli said.
He added that the reason the MVIP will not be used for power transmission is that the rates for generation in Mindanao and in the Visayas are the same ― an average of around P10 per kWh.
“The bulk of generation in Mindanao and in the Visayas comes from coal power plants (80% to 90% of the monthly power supply), whose rates have increased from around six pesos per kWh, pre-pandemic, to the present average rate of ten pesos per kWh,” said Tauli.
For his part, Larry Pascua of the Philippine Movement for Climate Justice (PMCJ) said that their data shows that Mindanao electric distribution utilities have Power Supply Agreements with Mindanao generation companies that have terms ranging from 15 to 25 years.
“They are locked in the duration of this period with the agreed-upon rates,” Pascua said adding that both the Visayas and Mindanao grids already have excess energy production outweighing demand.
Both Lapocof and PMCJ are partners of the Palag Na Sa Mahal ug Hugaw nga Kuryente sa Mindanao movement composed of electric consumers and organizations, formed to fight against the effects of costly and dirty sources of electricity like coal-fired power plants and proposed Liquefied Natural Gas power plants in Mindanao.
They are calling for the government to invest, instead, in renewable sources like solar, wind, and hydropower, like the Agus Pulangi Hydropower Complex in Lanao.
The Mindanao-Visayas Interconnection Project is expected to be completed by the end of March this year.
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