(PNA Bacolod file photo)
BACOLOD CITY – The residential power rate in this highly urbanized city and its five neighboring local government units (LGUs) is expected to go down by PHP3 to PHP4 per kilowatt hour (kWh) in the next billing cycle.
Mayor Alfredo Abelardo Benitez said Monday this would be the result of the lower generation rate and the interim approval of the Energy Regulatory Commission (ERC) of the provisional authority to implement the power supply agreement (PSA) between the Central Negros Electric Cooperative (Ceneco) and the Energy Development Corp. (EDC).
“It would be a reduction of almost PHP3 to PHP4 per kWh. They just approved it. We have to wait another month before we can feel it in our electric bill," Benitez said in a press conference.
He noted that that generation charge would be reduced by a little less than PHP2, while the geothermal energy from EDC would bring down the power cost by PHP1.50 to PHP1.80 per kWh.
In a radio interview, Ceneco acting general manager Arnel Lapore said the delivery date of their contract with the EDC is on June 26.
He expressed hope that the EDC could supply power to Ceneco before then for consumers to “experience the rate impact within the month of June.”
Lapore said the delivery of electricity from the EDC would reduce the exposure of Ceneco to the Wholesale Electricity Spot Market (WESM) by 20 percent.
In its earlier statement, the ERC said it informed Ceneco on May 30 of the interim approval for the implementation of its 20-megawatt PSA with the EDC “in a bid to arrest the increasing electricity rates affecting the province of Negros Occidental.”
The ERC notice of resolution dated May 29 gave interim relief for the EDC to supply power to Ceneco at the rate of PHP5.5657 per kWh.
“The ERC’s action on the PSA application is expected to reduce Ceneco’s generation rate amidst high electricity prices in the province, as well as mitigate its exposure to the WESM, where the electric cooperative is observed to be buying almost 74 percent of its supply,” it added.
According to the ERC, “the grant of approval imposes an obligation on EDC to provide replacement power to Ceneco.”
As the final generation cost that EDC can charge is still subject to review, it is duty-bound to pay a refund to Ceneco if the final approved rate is lower than the provisional rate granted, the ERC said.
The Ceneco is also mandated to credit the same in the electric bills of consumers, it added. (PNA)
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