Power co-ops decry rising costs

CAGAYAN DE ORO CITY — The Cagayan Electric Power and Light Co., Inc. (CEPALCO) and other electric cooperatives in Mindanao have formally asked the Energy Regulatory Commission (ERC) to intervene on the issue of increased charges by the National Grid Corp. of the Philippines (NGCP).

“The rise in the transmission rates in the electric bill is caused by the increase in the ancillary service charges…by NGCP,” said Marilyn A. Chavez, senior manager of CEPALCO’s Customer and Community Relations Department.

She attributed the rise in charges to the employment of two power barges that augment the power supply of the Mindanao grid.

Better days ahead?

The entire island’s power deficiency narrowed to 297 megawatts yesterday from -387MW last May 25 and -323 last May 18, NGCP’s Web site showed.

Power outages in this city have been reduced these past days as heavy rains fell, boosting water supply for hydropower plants.

“NGCP is not as strict as before with curtailments,” said Ms. Chavez. “Last night, for example, we did not turn off power, as scheduled, because NGCP did not ask us to. Most of the time [now], we switch off for only three hours. At most, we follow the old five-hour rotating schedule.”

Petition

Ms. Chavez said the power cooperatives now have a pending motion with the ERC for a rate reduction. “We are also asking them to amend the provisions in the procurement agreement between the power supplier and NGCP,” she said.

Regional NGCP officials declined to comment.

The increase was partly traced to the rate charged by Therma Marine, Inc., the owner of power barges whose supply contract was approved last March by the ERC.

Moreover, the cooperatives are asking the ERC to order NGCP to spread out the transmission service charges over six months to one year to give them ample time to pay.

Other major electric cooperatives on the island which filed their petitions before the ERC were Agusan del Norte Electric Cooperative, South Cotabato Electric Cooperative, Zamboanga Electric Cooperative, Davao del Norte Electric Cooperative and Davao del Sur Electric Cooperative. — LGD