Wednesday, June 10, 2020

Rural power co-ops dispute NGCP estimates of consumer charges


June 9, 2020 | 7:50 pm

RURAL electricity cooperatives disputed claims by the National Grid Corp. of the Philippines (NGCP) that their charges to rural consumers account for a third of all power bills.
Over the weekend, the NGCP noted that its transmission charges are only 4% of an electricity consumer’s bill, while generation charges collected by power plant operators amount to 44%, and the distribution charges make up around 33%.
Philippine Rural Electric Cooperatives Association (Philreca) said the distribution charges of power utilities in the countryside do not make up a third of their customers’ bills.
“There were no instances where the distribution charge of electric cooperatives would reach 33.49% of the effective power rate of the DU (distribution utility),” Philreca Executive Director Janeene D. Colingan said in a statement late Monday.
Ms. Colingan said the share of electric cooperatives’ distribution charges for every peso paid by their customers in their bills amounts to a little over P0.10 or around 10% of the total.
Ms. Colingan said for a cooperative which charges its customers P9.41 per kWh, 11% of the total bill is for the utility’s distribution services, while 16% is for transmission charges.
The NGCP report on electricity bill components is based on a billing statement of a residential customer of a large electricity distributor, “and is not referring to the case of the electric cooperatives,” she said.
The pass-through components in electricity bills, such as generation and transmission dues, which are paid for by consumers, are not remitted to power utilities. Generation charges are for power generators supplying electricity, while the transmission charges go to the NGCP. — Adam J. Ang

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