BACOLOD City – The Energy Regulatory Commission (ERC) has approved the implementation of the power supply agreement (PSA) between Central Negros Electric Cooperative (Ceneco) and Energy Development Corporation (EDC), in a bid to arrest the increasing electricity rates affecting the province of Negros Occidental.
Arnel Lapore, Ceneco’s acting general manager, said he received the Notice of Resolution dated May 29, 2024 from the ERC, giving interim relief for EDC to supply power to Ceneco at the rate of P5.5657 per kilowatt hour (kWh).
“The ERC’s action on the PSA application is expected to reduce Ceneco’s generation rate amidst high electricity prices in Negros Occidental and Bacolod City, as well as mitigate its exposure to the Wholesale Electricity Spot Market (WESM), where the electric cooperative is observed to be buying almost 74 percent of its supply,” read part of the ERC statement released on May 31.
It added that the grant of approval imposes obligation on EDC to provide replacement power to Ceneco.
The ERC likewise noted that the final generation cost that EDC can charge is still subject to review by the Commission. If the final approved rate is lower than the provisional rate granted, the EDC is duty-bound to refund to Ceneco, and the latter is also mandated to credit the same in the electric bills of consumers.
Lapore said the ERC’s approval is an advantage for the consumers under the franchise areas of Ceneco as it will bring down the electricity generation rate to about P1.50/kWh.
He added however that the lower power rate would reflect in the July billing.
To recall, Ceneco and EDC filed a joint petition on March 15, 2024 under ERC Case No. 2004-038 RC, entitled “In the matter of the application for the approval of the power supply agreement between Ceneco and EDC, with motion for confidential treatment of information and prayer for provisional authority or interim relief.
On May 27, Bacolod City’s Mayor Alfredo Abelardo Benitez sent a letter addressed to Monalisa Dimalanta, the ERC’s chairperson and chief executive officer, highlighting the consumer outcry over soaring power rates in recent months.
More than 60 days have elapsed since the filing, with no action from the ERC, leading to “intolerable increases” in power rates, stated Mayor Benitez.
The city mayor urged the ERC to expedite the approval process to alleviate the financial burden on consumers./PN
