Power sector weighs fuel risks as MidEast war jolts oil markets

POWER industry leaders are reassessing the Philippines' heavy reliance on imported fuel after escalating conflict in the Middle East pushed oil prices higher and raised concerns over electricity costs in the months ahead.

- BY JED MACAPAGAL

They said the country must reduce dependence on imported fuel as geopolitical tensions in the Middle East threaten to ripple through energy markets and electricity prices.

Manuel Pangilinan, chairman and chief executive officer of Manila Electric Co. (Meralco), said on Wednesday the power utility will review its fuel sourcing strategy amid rising volatility in global coal, diesel and liquefied natural gas markets.

"We want to ensure adequate supply of power and manage price volatility as responsibly as possible. I have made it clear to the team that we must help protect consumers as the cost of goods rises globally," Pangilinan said.

He also urged consumers to conserve electricity as the conflict continues to disrupt global energy markets.

"It would also help if we're mindful of our electricity consumption as the war in the Middle East continues. We import much of the fuel used to generate power. If we conserve power, we can help ensure supply over the next few weeks," he said.

Fuel mix

Lawrence Fernandez, Meralco vice president and head of the utility economics department, said the company's generation mix currently consists of roughly 20 to 25 percent coal, 60 percent natural gas and about 10 percent renewable energy.