Power rate down this month

Sunstar Bacolod

DESPITE the increase in fuel prices, electricity rates have decreased this month, an official of the Central Negros Electric Cooperative (Ceneco) said.

Ceneco president Edward Gasambelo said the lower power rates this month was market driven due to market forces.

He said that Ceneco's major power source for this month is hydro power, which is the reason for the decreased generation cost. The lower electricity rates this month can also be attributed to lesser power consumption due to the colder weather, he added.

Gasambelo pointed out that the decrease is only temporary because it is market driven and would depend on the generation cost of power. If the source of power distributed by Ceneco is cheaper than that from other sources, then the generation cost, which Ceneco has to pass on to its consumers, will also be lessened.

Meanwhile, Gasambelo assured consumers that Ceneco has sufficient power supply right now.

In December 26, 2010, Ceneco ended its power contract with the National Power Corporation (NPC) and is now getting its supply from the Unified Geothermal Power Plant in Leyte. Another independent power producer whose plant is still in its commissioning stage also offered power to Ceneco.

Aside from the two sources, Gasamabelo said Ceneco also gets power from the Panay Energy Development Corporation in Iloilo City through the Wholesale Electricity Spot Market (WESM).

The spot market has been available since December 26, which also coincided with the termination of the power supply contract of Ceneco and other electric cooperatives in the Visayas with the National Power Corporation.

The Department of Energy (DOE) launched the Wholesale Electricity Spot Market (WESM) in the Visayas in December last year. The main purpose of WESM is to solve power interruptions or brownouts, according to Energy Secretary Jose Almendras.

WESM is a venue where electricity made by power-producing companies are centrally coordinated and traded like any other commodity in a market.

As a wholesale market, it is open to distributors, directly connected customers, large-scale users and, eventually, supply aggregators. As a spot market, electricity is traded on real-time basis, or "on the spot".

The WESM's role in the country's overall energy reform is to create a fair, transparent and reliable trading environment that will attract investments and encourage healthy competition leading to the ultimate objective of cheaper electricity for all consumers. (Teresa Ellera-Dulla)

Published in the Sun.Star Bacolod newspaper on February 12, 2011.