LAST Friday’s PN article showing that MORE Power’s rates have decreased from P14.6863 per kilowatt hour (kWh) in December 2022 to P12.2990 per kWh in May 2023 is welcome. This means that a typical family consuming 500kWh per month had to pay P7,343 last Christmas but “only” P6,145 in May. A reduction of P1,198 which makes an impact on our monthly budget.
This focuses attention on the fluctuations in our electricity bills depending on where we live. The amounts are substantial.
In March 2023, those who live in La Union and are customers of the local cooperative, LUECO, paid “only” P7.92 per kWh. At the other end of the scale, the unfortunate denizens of Surigao del Sur, suffered significantly. Their charge was more than double – a whopping P18.78 per kWh.
Region 6 residents were near the median. The charge imposed by the Central Negros Electric Cooperative (CENECO) was P13.67 per kWh last March whereas Iloilo residents paid P13.72.
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I believe that a case can be made for electricity costs to not vary overmuch between one region and another.
The nation has 152 distribution utilities and electric cooperatives. Can economies be made if there were less, but larger, entities? This would provide a better negotiating position when determining purchase agreements with their electricity suppliers.
In 2013, Ceneco came to an agreement with its supplier, Kepco-Salcon, in which Ceneco agreed to pay penalty costs if it consumed less electricity than negotiated. This quickly happened and Ceneco’s hapless consumers found that they were expected to pay for electricity that they did not want, did not need, and did not receive.
There were protracted submissions made by both Ceneco and Kepco-Salcon to the Energy Regulatory Commission (ERC), but in the end the Commission found in favor of Kepco-Salcon, so Ceneco consumers had to pay for the non-existent electricity.
Shame!
Perhaps this would not have happened if a smaller number, but larger, entities were negotiating with Kepco.
A more buoyant market, resulting in reduced electricity costs, could result in a higher standard of living for residents. For example, many of us believe we cannot afford air-conditioning due to the high costs involved. We fear the summer months. Students find it difficult to concentrate on their studies. Productivity deteriorates.
We need more affordable electricity./PN
