MANILA, Philippines - Consumers in Mindanao might have to brace for an increase in power rates once the government adopts the National Disaster Coordinating Council’s (NDCC) recommendation for a declaration of state of calamity in Mindanao.

Energy Secretary Angelo Reyes said the planned leasing of modular generator sets could push power rates by as much as P14 per kiloWatt-hour (kWh).

“The option of leasing diesel-fired generator sets will definitely push power rates by P14/kWh compared to the hydroelectric power plants, which Mindanao is heavily dependent on,” the energy chief said in a press conference.

Reyes said the private sector or the embedded generators that will generate electricity will be compensated for their efforts.

“But, of course, this [compensation] will require the Energy Regulatory Commission’s [ERC] approval,” he added.

And even if a state of calamity is declared, Reyes said it will just put in place the needed structures, guidelines and procedures to address the power-supply shortage in Mindanao.

He quickly added that the government does not discount the possibility of encouraging and involving the private sector.

Since the government is barred from putting up generating capacities or entering into power contracts, Reyes said the option of purchasing or leasing power generator sets will have to be done by the private sector.

And if the private sector could not, Reyes said the government would ask how it could help the private sector.

Reyes quoted the National Power Corp. (Napocor) estimates that leasing of 160-megaWatt (mW) generator sets would cost at least P5.5 billion in investments.

He declined to provide more details on the measures the government may take to address the power crisis in Mindanao, except that the lease or acquisition of generator sets is a quick-fix measure to address the power crisis in Mindanao.

Reyes, however, could not ascertain how long it would take the government to decide to address the power-supply shortfall in Mindanao. And even if considered a quick fix, the delivery of power generator sets could take at least two to four months before it reaches Mindanao, he added.

Reyes appealed to the public to treat as separate issues the election and power situation.

“The power situation is a problem and we will do our best to solve it. But let’s not link it to the elections. It’s not right. We are creating an artificial problem. We are trying to do our best to solve this problem,” Reyes said.

The National Grid Corp. of the Philippines (NGCP) said Mindanao continued to have a deficit of 748-mW power on Wednesday. Its available capacity was registered at 749 mW and peak demand at 1,497 mW.

NGCP attributed the deficit to the limited available capacities from Napocor’s hydropower plants, most of which have water reservoirs that are drying up due to El Niño.