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Modernization of Iloilo City’s power distribution network helped lessen the effects of repeated grid disturbances that hit the Visayas over the past two months, but the gains underscore the need for wider reforms across the country’s electricity supply chain, according to a report by the Institute of Contemporary Economics (ICE).
The report found that investments made by MORE Electric and Power Corp. since it assumed operations in Iloilo City in 2020 strengthened the local distribution system, allowing it to better manage a series of grid-security events that triggered power interruptions across the Visayas from May to June.
However, the think tank also cautioned that improving distribution alone cannot resolve recurring supply shortages if generation, transmission, and system planning continue to lag.
Grid Strain Exposes Weaknesses
ICE said the Visayas grid experienced repeated power interruptions between May and June, including seven incidents from June 2 to June 19, which were driven by thin reserve margins, forced outages of major power plants, and transmission constraints rather than localized distribution failures.
The situation peaked on June 10 when reserve margins fell to just 8 megawatts against a peak demand of 2,421 MW, prompting the National Grid Corporation of the Philippines (NGCP) to place the Visayas grid under a Red Alert and implement Manual Load Dropping (MLD), or controlled rotational outages, to prevent a system-wide collapse.
“Repeated MLD shows that the system is being kept from failure by deliberately interrupting consumers. That is not normal resilience. It is managed fragility,” the report said.
According to ICE, every MLD event places an estimated ₱12.7 million in Iloilo’s economic output at risk, with potential losses ranging from ₱9 million to ₱16.9 million per incident.
The report also noted that while a recent earthquake in Mindanao reduced electricity imports to the Visayas and contributed to the June 10 Red Alert, the disaster merely worsened an already fragile system that had been operating with limited reserves.
Modernized Distribution Network
Despite the regional supply crisis, ICE said MORE Power’s automated distribution network enabled operators to carry out feeder selection, load rotation, and service restoration more efficiently, helping sustain electricity supply to hospitals, schools, and other critical facilities.
Since taking over Iloilo City’s distribution franchise from Panay Electric Company in 2020, the utility has invested ₱2.65 billion in rehabilitating and modernizing its network.
The company has reduced distribution losses from around 30 percent to 4.75 percent while maintaining a residential electricity rate of ₱11.13 per kilowatt-hour, among the country’s lowest.
The report emphasized, however, that routine maintenance and modernization are not interchangeable. “Maintenance keeps an existing network operating. Modernization builds capacity, redundancy, automation, monitoring capability, faster restoration, and resilience,” ICE explained.
It added that a modern electricity system should not merely restore power quickly after interruptions but should also have sufficient redundancy, reserve capacity, and coordination to prevent avoidable outages in the first place.
Every Link In The Power Chain
While acknowledging the benefits of MORE Power’s investments, ICE said consumers can only experience reliable electricity when every segment of the power industry functions effectively.
“Modernizing the local distribution network reduces local failures, improves response, and strengthens the last mile, but it cannot substitute for generation reserves, transmission deliverability, or system-wide planning. The consumer experiences reliable electricity only when the full chain performs,” the report said.
The study linked the recent events to broader concerns that resurfaced after the Panay-wide blackout in January 2024. Unlike that collapse, the latest incidents were controlled curtailments designed to keep the grid operational by temporarily disconnecting consumers.
Data cited by ICE showed that recurring MLD beginning May 13 affected about 645,400 customers across the franchise areas of MORE Power, Negros Power, and Bohol Light, resulting in 940,848 kilowatt-hours of unserved energy. MORE Power alone accounted for 135,364 affected customers and approximately 340,990 kilowatt-hours of lost energy.
Stronger Planning Needed
The report placed ultimate responsibility for addressing recurring power curtailments on the Department of Energy (DOE), saying the agency holds the statutory mandate under the Electric Power Industry Reform Act to ensure adequate planning, system integration, and reserve capacity.
ICE recommended adopting binding reserve standards, improving public disclosure of outage information, and strengthening transmission deliverability into Panay to reduce dependence on emergency load reductions during supply shortages.
The findings also come as lawmakers consider proposals to expand MORE Power’s franchise to neighboring municipalities, supported by the utility’s operational performance and rising electricity demand across Panay. ICE noted that power demand on the island grew at a compounded annual rate of about 18.5 percent between 2020 and 2023, underscoring the need for coordinated investments across generation, transmission, and distribution to sustain future growth.
Source:
https://www.dailyguardian.com.ph/blog/more-power-modernization-cushioned-city-from-grid-crisis