Power rates up by 36 cents

Sunstar Bacolod

THE Central Negros Electric Cooperative (Ceneco) will implement a 36-centavo per kilowatt-hour (KWh) increase on December 26 while there will be another increase of approximately 91 centavos come March 2011.

The consecutive increases translate to an additional P1.27 per kilowatt-hour that consumers have to cough up for their electric consumption.

Ceneco General Manager Sulpicio Lagarde Jr. said the electric coop is compelled to implement the 36-centavo per KWh increase because Ceneco's power supply contract with the National Power Corporation (Napocor) will expire on December 25.

With the expiration of the contract, Ceneco will lose the 30-centavo rate reduction mandated by law from Napocor, as well as the 6-centavo prompt payment discount availed by Ceneco from Napocor.

He said Ceneco has enjoyed a total of P2.6 million courtesy of the prompt payment discount that was given back to the consumers in the form of a subsidy.

Lagarde also explained that on March 2011, Ceneco consumers can expect another increase of approximately 91 centavos per KWh when Ceneco starts sourcing power from Kepco Salcon's coal-fired power plant.

Electric consumers are currently paying P3.85 per KWh. This rate is expected to increase to P4.76 per kilowatt hour, which represents the cost of coal-sourced power, plus the value added tax (VAT).

Lagarde clarified that this is simply an estimate, as the actual cost will depend on the blend or source of power available, depending on the prevailing weather condition.

By that time, Ceneco assures the consumers, there will be stable power.

Ceneco officials said that it will not only be Ceneco that will implement the rate hike. A similar increase will also be implemented by other distribution utilities all over the country.

During the transition from Napocor to Kepco Salcon for the period covering December 26 to March 2011, Ceneco will be getting power from the National Power Corporation's Power Sector Assets and Liabilities Management (NPC-Psalm) power plant from the Unified Leyte power grid, Lagarde said.

Meanwhile, the electric coop forewarns consumers of impending power outages this holiday season in areas covered by the Visayas Grid due to the shutdown of the Energy Development Corporation's Northern Negros Geothermal Power Field (EDC-NNGPF) in Bago City.

While Ceneco does not get its power supply from EDC-NNGPF, the plant's shutdown inevitably affects the entire grid and causes the implementation of the rationing system during peak hours when the low power voltage usually occurs.

Power outages due to such power voltage had been happening in the whole Visayas Grid since last week of November this year.

Lagarde pointed out that the situation is beyond Ceneco's control because it is the National Grid Corporation, the power transmission company, which decides on load-shedding matters.

"We are the last to like brownouts," he said, adding that power outages would mean loses to distribution utilities like Ceneco.

Ceneco's peak load reaches to 115 megawatts, according to Lagarde. Because of the present power situation, power consumers are encouraged to observe power conservation especially during peak hours from 6 p.m. to 9 p.m.

He said Ceneco has implemented major reforms inside their office for the welfare of employees so that they can deliver good service to the consumers. (Teresa Ellera-Dulla)

Published in the Sun.Star Bacolod newspaper on December 09, 2010.