INEC announces power rate hike this March

Rate increase pegged at P0.33/kwh

By Dominic B. dela Cruz

Staff Reporter

Dingras, Ilocos Norte—Ilocos Norte Electric Cooperative officer-in-charge Engr. Felino Herbert P. Agdigos announced that power rates for March will increase.

Based on the unbundled rate schedule for the March billing the generation charge increased the distribution charge however was unchanged. INEC collects P0.99 per kilowatt-hour for the distribution charge as approved by the Energy Regulatory Commission (ERC).

Agdigos explained that generation charge is the fee paid for the electricity generated by power suppliers. Currently, INEC sources 90 percent of its power supply from San Miguel Energy Corp., with a contract that lasts until 2016. The remaining 10 percent of INEC’s electricity supply comes from Wholesale Electricity Spot Market (WESM).

Should there be a shortage of supply this summer season, Agdigos said they could get the needed shortfall from WESM, allaying fears of power supply shortage.

Agdigos emphasized that the power rare increase is due to the “summer heat effect” as this prompts consumers to use more electricity to cool themselves. He added that the power sector is also governed by the law of supply and demand and with the high demand for power and a limited supply, rates are likely to increase.

Agdigos expounded further that although INEC has a mini-hydro power plant in Pagudpud, Ilocos Norte, this plant only gives minimal supply of electricity and feeds only the northern part of Ilocos Norte.

As for the touted windmill farm in Bangui, Ilocos Norte, Agdigos said electricity generated there are directly sold to the WESM.

The INEC OIC also said that flash power interruptions cannot be avoided but this is not all due to the cooperative but because of maintenance operations by power suppliers and transmission operators.

He also cited that compared to Ilocos Sur Electric Cooperative (ISECO), INEC’s rates are lower.

Meanwhile, INEC finance manager Rose Bumanglag also confirmed the power rate increase due to the generation charge. She said the rates would increase from P4.80 per kilowatt-hour to P5.07 per kilowatt-hour for residential users.

Aside from the generation charge, there is also an adjustment of P0.02 centavos for the systems loss and the value-added tax, the INEC official explained.

Computing the total increase, Bumanglag said there would be a P0.33 per kilowatt-hour increase for March for residential users.

She added that power rates in the succeeding months would again be based on the total power load that INEC would buy.

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