ILOILO City – The Electric Cooperatives Association of Region VI assured that electricity bills will start to decrease from June due to a projected reduction in consumer power consumption and falling wholesale electricity prices.
Atty. James Balsomo II, the general manager of Iloilo III Electric Cooperative, Inc. (ILECO III), said the recent hike in electricity bills, particularly noticed in April, was temporary.
The increase was driven by two primary factors – a surge in consumer power consumption and rising prices at the Wholesale Electricity Spot Market (WESM).
ILECO III reported a significant 16.94 percent increase in power consumption in April 2024, with figures showing a rise from 25,963 kilowatt-hours in February to 27,389 kilowatt-hours in March then to 30,360 kilowatt-hours in April.
Simultaneously, electricity prices in the WESM escalated – from P6.55 per kilowatt-hour in February to P12.02 per kilowatt-hour in March, then to P15.71 in April to P8.48 per kilowatt-hour by May – due to increased demand across the region.
“This spike in consumption wasn’t isolated to ILECO III but was a trend seen across all electric cooperatives and distribution utilities, which led to increased procurement from the WESM,” Balsomo explained during a press conference held by the Electric Cooperatives Association of Region VI on Monday morning.
The National Grid Corporation of the Philippines (NGCP) issued 57 red alerts and 157 yellow alerts from January to May this year, indicating a high demand for power supply across the country.
A yellow alert signifies a critical balance of supply against demand, where even a single large plant shutdown could result in a deficiency such as when Palm Concepcion Power Corporation in Concepcion, Iloilo which has a capacity to supply 135 megawatts of power underwent maintenance early this early (and up to now).
A red alert indicates an actual deficiency in supply against demand.
Despite the initial surge, Balsomo pointed out that the effects of the El Niño phenomenon, which drove up consumption, are subsiding with cooler weather leading to a decrease in both consumption and prices.
The price per kilowatt-hour at WESM has dropped to P8.48 in May from its peak, he said.
ILECO III currently charges P15 per kilowatt-hour, but Balsomo expects this to decrease by P1 to P2 starting in June, with a potential return to the region’s lowest rate of P11 per kilowatt-hour in the following months.
Similarly, Engr. Jose Redmond Eric S. Roquios, the general manager of ILECO II, anticipates a reduction in their rates from June, linking the decrease to cooler weather in May which has led to lower consumer consumption.
For his part, Engineer Miguel Paguntalan Jr., general manager of ILECO I, announced that their consumers can expect lower electricity bills starting this June. This anticipated decrease is attributed to a gradual reduction in power consumption and the securing of an additional 15 megawatts from a power supplier at a more competitive price.
“We anticipate a significant drop in rates by May, which will be reflected in the June billing,” he said.
ILECO I consumers experienced a hike in their electricity bills in April. Prior to this increase, the rate was P12.90 per kilowatt-hour, but from April onwards, it escalated to P14.49 per kilowatt-hour, marking an increase of P1.50 per kilowatt-hour.
This adjustment was largely due to fluctuations in consumption patterns and the overall demand within the region, said Paguntalan.
Shirley Laurente, general manager of Guimaras Electric Cooperative (Guimelco) and president of the Electric Cooperative Association of Region VI, attributed the regional rate increases mainly to a significant rise in generation costs at WESM.
“The increase is a pass-on charge which means that once collected, it will be remitted directly to power suppliers,” Laurente said during the press conference.
Laurente also highlighted efforts to contract power suppliers at lower costs through the Competitive Selection Process (CSP), which is expected to further reduce generation charges once regulatory approvals are obtained./PN
