Power coops generate 3% higher sales in Q1

MANILA, Philippines — Sales generated by electric cooperatives (ECs) went up by three percent in the first quarter, the National Electrification Administration(NEA) said.

Data from NEA’s Informational Technology and Communication Services Department (ITCSD) showed that total EC energy sales in the first three months of the year inched up to 5,338 gigawatt-hours (gwh) from 5,162 gwh in the same period last year.

Despite the increase, NEA said EC revenues declined by 1.5 percent during the period.

Total gross revenue of the ECs amounted to P49.7 billion, lower than the P50.4 billion recorded last year.

Meanwhile, the power coops posted an average of 10.13 percent in system loss, a reduction of 0.41 percentage point from the 10.54 percent recorded in 2019.

“The average system loss registered is 1.87 percent lower than the 12-percent cap prescribed by the Energy Regulatory Commission (ERC) for the ECs, which can be recovered and charged to electricity consumers,” NEA said.

NEA emphasized that 95 ECs posted a system loss that is still within the mandated cap. Of this number, 51 registered single-digit system loss.

It added that single-digit system loss was recorded in Cordillera Administrative Region (CAR), MIMAROPA, Regions I, III, VI, VII, VIII, X, XII and CARAGA.

The ECs in Region VII (Central Visayas) registered the lowest average system loss at 6.55 percent, followed by the ECs in CAR at 7.21 percent, Region XII at 7.99 percent, and Region X at 8.02 percent.

NEA Administrator Edgardo Masongsong welcomed this development as he urged the power cooperatives to continuously strive toward improving their operations, and bring down their distribution system losses further.

Earlier this week, the Philippine Rural Electric Cooperatives Association Inc.(PHILRECA) emphasized that the majority of ECs are compliant with regulations on system loss.

It added that system loss is inherent in the distribution of electricity, stressing that it is impossible, scientifically, to create or install a transmission or distribution facility without the system incurring any form of energy loss.

“Distribution utilities can try to lower such losses to as low as scientifically possible but there are limitations in as far as technology and economics are concerned,” PHILRECA said.

The group emphasized that repeated simulations have shown that the costs that the distribution utilities will have to incur in investing on other necessary infrastructure  will significantly outweigh any possible decrease in the system loss charge.

PHILRECA said, together with its other member-electric cooperatives, have been meeting with energy stakeholders like the ERC, Department of Energy, National Grid Corporation of the Philippines, members of the House of Representatives, and other groups of ECs to come up with recommendations and solutions on how to address the concerns of underperforming ECs.