BY MA. THERESA LADIAO
GUIMARAS – The recent surge in electricity rates has alarmed member-consumer-owners (MCOs) of the Guimaras Electric Cooperative (GUIMELCO).
In an October 3 press conference, the cooperative attributed the increase in the August 2024 billing to external market factors beyond its control.
The rise in rates was primarily driven by fluctuating prices in the Independent Electricity Market Operators (IEMOP) and not due to changes in their Power Supply Agreements (PSAs) with Panay Energy Development Corporation (PEDC) and Green Core Geothermal Energy (GCGI), according to cooperative officials.
Corporate Services Manager Engr. Danmmar G. Demanalata explained that the cooperative operates under strict regulation, complying fully with Republic Act 9136, the Electric Power Industry Reform Act (EPIRA).
“All our power supplies are covered by PSAs and the Market Participation Agreement in the case of IEMOP. These agreements undergo review and approval by the Energy Regulatory Commission (ERC),” he said.
The price hike was mainly caused by the implementation of the National Grid Corporation of the Philippines’ (NGCP) N-1 Contingency Plan, which temporarily reduced the power supply from outside Panay Island by 50%. This reduction led to the activation of more expensive local diesel plants, raising costs for consumers.
Engr. Rodel F. Anado, GUIMELCO’s Field Services Engineer, noted that while the contingency plan helped avoid widespread blackouts, it resulted in artificial line congestion that further inflated costs.
Additionally, GUIMELCO cited staggered billing from IEMOP, following ERC’s directive, as another factor. The cooperative spread June’s power purchase costs across several months, leading to lower rates in June but higher charges in July and August.
To alleviate the impact on consumers, GUIMELCO introduced measures such as suspending disconnections and offering a Staggered Payment Scheme, allowing MCOs to spread the increased costs over three months.
GUIMELCO Chairperson Gina G. Montaño announced that the cooperative had filed a petition with the ERC to seek financial relief for affected consumers and challenge the additional charges stemming from line congestion.
Meanwhile, General Manager Shirley S. Laurente reported a decrease of P2.43/kWh in the September billing, providing some relief to MCOs.
“Our legal team is working to ensure that any refunds from the NGCP case will be passed on directly to consumers,” Montaño added./PN