DMCI Power Corporation is advocating for the small power utilities group (SPUG) to be excluded from the coal moratorium as a means to reduce high electricity costs.
In a report by Inquirer, DMCI Power chairman and CEO Isidro Consunji said that SPUG facilities should not be included in the moratorium, as these plants, which are overseen by the National Power Corporation, serve remote areas not connected to the main power grids and largely rely on diesel generators.
To this, Consunji encouraged the Department of Energy (DOE) to revisit the moratorium policy in order to reduce financial difficulties for consumers in off-grid areas. He underlined that coal is a cost-effective option compared to diesel, which he described as a very costly fuel source.
The coal moratorium, enforced in 2020, halts the approval of new coal facilities.
However, the DOE clarified that the moratorium is not an outright ban and does not affect existing or committed coal plants.
Consunji argued that phasing out coal is unreasonable, calling it the cheapest fuel option. He suggested that while no new coal plants may be necessary, eliminating coal entirely would be unnecessary.
For example, DMCI Power’s coal plant in Masbate provides electricity at Php 9 to Php 10 per kilowatt-hour, far below the Php 19 to Php 23 per kWh rates of diesel plants.
DMCI Power currently operates a 15-megawatt coal plant in Masbate under a 15-year supply agreement with Masbate Electric Cooperative.
