‘Yellow alerts’ trigger high electricity rates

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Electricity consumers are advised to brace for higher electricity bills this month as repeated “yellow alert” incidents last month threatened the stability of the Visayas power grid.

The increase will affect all areas and consumers in the Visayas region, according to Negros Electric and Power Corp. (Negros Power).

Engr. Christian John Villena, energy sourcing manager of Negros Power, explained yesterday that a “yellow alert” is declared when the available power supply is barely enough to meet peak demand, leaving very little room for error.

While this does not immediately result in outages, the limited reserves directly affect electricity prices in the market.

Villena said “yellow alert” means the lack of supply and will trigger increase in prices of electricity in the spot market.

On Aug. 5, the Visayas grid recorded an available supply of 2,528 megawatts while demand reached 2,475 megawatts, leaving almost no buffer.

The Department of Energy confirmed that 14 power generating facilities were offline that day, resulting in a 385-megawatt loss while five others operated at minimal capacity.

Mindanao faced a similar crisis with 11 plants shutting down.

Villena likened the situation to driving a car with an empty fuel tank.

“You can still keep moving, but the slightest obstacle can stop you completely,” he said.

The problem, however, goes beyond the risk of power interruptions.

With a tight supply, electricity in the wholesale market becomes more expensive.

“This higher cost trickles to consumers through generation and transmission charges reflected in monthly bills,” Villena said.

He noted that “yellow alerts” are more than technical advisories as they are warning signs that the country’s power sector lacks sufficient reserves to meet the growing demand.

“For consumers, this means the possibility of rotational brownouts and the greater likelihood of rising power rates,” Villena further said.

He emphasized that long-term solutions such as building new power plants and ensuring reliable capacity are urgently needed to protect consumers from the financial burden of an unstable grid. ||

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