MANILA, Philippines — Approximately P1.0 billion worth of fuel supply delivered at the 1,200-megawatt Ilijan power plant has been reported "not usable" because of impurities and it is not also within the technical specifications set for the facility.
Sources from power plant operators noted that the purpose of the fuel delivery would be to regulate the facility’s “moisture”; but when it was tested for utilization, impurities have been discovered so it can no longer be used to run the facility.
The fuel supply for the plant was auctioned by the Power Sector Assets and Liabilities Management Corporation (PSALM). It should have covered part of the plant’s requirements for the first quarter.
It was reported that the technical people running the plant “did not accept’ the diesel fuel, hence, it has just been held at the storage facilities within the Ilijan plant’s vicinity.
PSALM president Emmanuel R. Ledesma Jr., in a text message, said “we have no record of the plant rejecting the fuel,” insisting further that “the fuel purchased for the Ilijan plant was in accordance with the specifications and applicable laws.”
The company though has not given categorical statement if it already made “on the ground investigation” of such development.
The reported ‘unusable’ fuel deliveries could ignite new apprehensions: first, the P1.0 billion cost for the fuel may eventually be passed on in the consumers’ electric bills; or if there would be no replacement for that supply, capacity generation at the Ilijan plant may be affected and it might cause either power interruptions or supply tightening which will in turn cause price spikes.
Beyond the natural gas being utilized at the Ilijan plant, there are also instances when fuel shifts are warranted: such as in cases of constricted gas supply or during maintenance of the Malampaya gas production facility, among others.
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