Power coops post record-low system loss

MANILA, Philippines - System loss in several electric cooperatives (ECs) hit record-lows again last year owed to infrastructure upgrades, resulting in almost half a billion peso electricity savings, the National Electrification Administration (NEA) said.

The ECs posted an average record low system loss of 11.12 percent in 2015, lower than the 13-percent cap set by the Energy Regulatory Commission (ERC).

It also compared lower with the 11.67 percent system loss in 2014.

The reduction in system loss has an equivalent savings of 71,258,654.01 kWh or about P488 million for ECs’ member-consumers.

The agency said the reduction in system loss is attributed mainly to the massive meter changes, including pole metering and cluster metering done by the ECs to their member-consumers.

“Strategic interventions are being carried out to reduce system loss of the electric cooperatives for them to be operationally efficient and be of better service to their member-consumers. Lower system loss could also mean lower cost of electricity rates,” NEA Officer-In-Charge Sonia San Diego said. 

NEA said 89 ECs posted a within-the-cap system loss set by ERC, of which 33 registered single-digit loss. Meanwhile, 78 ECs showed marked improvement in their system loss level in 2015 compared to their 2014 level.

The five ECs which had the lowest system loss are Misamis Oriental I Rural Electric Service Cooperative Inc. (Moresco I) with 3.04 percent; Dinagat Island Electric Cooperative Inc. (Dielco) with 5.31 percent; Batanes Electric Cooperative Inc. (Batanelco) with 5.54 percent, Bohol I Electric Cooperative Inc. (Boheco I) with 6.04 percent; and Iloilo III Electric Cooperative Inc. (Ileco III) with 6.22 percent.

By region, the Region VII (Central Visayas) ECs recorded the lowest average system loss at 8.22 percent. It is followed by Region X (Northern Mindanao) ECs at 8.69 percent and Region III (Central Luzon) ECs at 9.33 percent. 

“The NEA continues to exhaust all possible means to make funds readily available for the electric cooperatives. The money we pour for the coops guarantees their ability to serve better their stakeholders,” San Diego said.

Since 2004, NEA has released to 80 ECs a total of P1.456 billion loan from its Single Digit System Loss loan window.