The Department of Energy (DOE) said the Visayas Grid has exited Yellow Alert status following the return to service of Panay Energy Development Corporation (PEDC) Unit 3, which restored 150 megawatts (MW) of generating capacity and ended nearly two months of recurring supply warnings that began in May.

Energy Secretary Sharon Garin described this development as a “welcome improvement” in the region’s operating reserves, easing the risk of rotating power interruptions.

“This is encouraging news for households, businesses, and industries across the Visayas, and is a result of continuous operation between the DOE and our energy partners,” she said during a media briefing on Monday.

But Garin noted that several major power facilities remain under scheduled maintenance, including Therma Visayas Units 1 and 2, each with a capacity of 169 MW, and KEPCO-SPC Unit 1 in Cebu.

The two Therma Visayas units, each with 169 MW capacity, are expected to return by the end of August 2026.

“In the meantime, the Visayas continues to receive approximately 700 megawatts of imported power from Luzon and Mindanao,” the DOE official said.

With PEDC Unit 3 back in operation, total dependable capacity in the Visayas has reached 2,503 MW during daytime and 2,483 MW during peak evening hours.

Proposed amendments on Oil Deregulation Law

Garin also shared that the agency has proposed amendments to Republic Act No. 8479, also known as the Downstream Oil Industry Deregulation Act of 1998, which are now under consideration by the Senate Committee on Energy and the House of Representatives.

Key proposals include creating a national fuel reserve equivalent to 60 days of supply and increasing oil companies’ minimum inventory requirement from 15 to 30 days.

“These are not simply regulatory amendments; they are practical measures that will strengthen our energy security, improve supply resilience, and better protect the Filipino people from future global disruptions,” Garin said.

However, she clarified that there is no proposal to change the current pricing mechanism, emphasizing that the focus of the proposed amendments is on safeguards, such as maintaining strategic reserves and improving government monitoring of fuel supply.

She added that they are leaving any decision on price regulation to lawmakers.

How should policymakers weigh building more capacity versus improving resilience of existing plants?

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