Public hearing on power rate hike today

Sunstar Bacolod

THE Energy Regulatory Commission (ERC) will hold a public hearing Tuesday on the power rate hike to be imposed by the Central Negros Electric Cooperative (Ceneco).

Cheryl Tortal, Public Relations Officer of Ceneco, said the hearing, which will be conducted at the annex building of Ceneco at 9 a.m. Tuesday, is intended for the setting of rules for electric cooperatives' "wheeling rates" to be charged to consumers.


The rate increase was approved by the ERC after the rate-regulatory body discovered that Ceneco's rate is lower than the standard rates it pays for the transmission cost from the National Grid Corporation of the Philippines (NGCP).
Tortal encouraged consumers and all power stakeholders to attend the hearing so they will be clarified on the matter.

Ceneco General Manager Sulpicio Lagarde said the 36 centavos per kilowatt hour (KWhr) rate increase is actually not an increase to be imposed by Ceneco on its consumers but is, rather, a subsidy previously granted by the National Government to the electric cooperative but which Ceneco can no longer enjoy.

Under the Electric Power Industry Reform Act, the state-owned National Power Corporation (Napocor) is mandated to implement a mandatory rate reduction of P0.30 per kilowatt hour on consumers as well as a prompt payment discount which is computed at P0.06 per KWhr.

When Ceneco's power supply contract with Napocor ends on December 25 this year, the electric coop can no longer avail of the mandated rate reduction and prompt payment discount. Thus, Ceneco has to pass on the loss of the "subsidy," or the added payment, to the consumers effective December 26.

Lagarde explained that Ceneco's power demand is 120 megawatts. Come December 26, Napocor will provide 40 megawatts, and the remaining 80 megawatts that composes two-thirds of the total demand will come from a third-party source.

"That's why we can no longer enjoy the subsidy," he said.

Lagarde further explained that although Ceneco wants to continue its contract with Napocor, the company no longer has the capacity to provide for Ceneco's total power demand.

Meanwhile, Lagarde said he will personally see Negros Occidental Governor Alfredo Marañon Jr. and other officials to inform them about the power rate hike. He said the issue is too technical, that's why they would want to make a presentation of the power situation to enlighten provincial officials and the consuming public.

Marañon said Monday that he opposes the power rate increase. He said that if there is such an increase, the electric cooperative must make sure that they provide the consumers with efficient service.

Published in the Sun.Star Bacolod newspaper on December 14, 2010.