Power rate might rise

CEBU, Philippines – Power consumers in the Visayan Electric Company’s franchise area might have to bear a power rate increase of P.30 to P.35-per-kilowatt-hour this year if VECO’s generation cost goes up and if power demand goes up during the summer.

Ganzo Sederiosa, VECO corporate communications manager, made the announcement during the media forum yesterday at Rajah Park Hotel. She said it is normal for the generation cost to go up during summer because the demand for power also increases.

Generation charge is 60 percent of the bill, said Engr. Dennis Verallo, representative of VECO’s Utility and Economic Department. The other parts of the bill are distribution charge and taxes.

Verallo said that for an average consumer with 200 kilowatt-hours a month, the increase means an additional P70 in the bill.

“Generation charge is ang atong ibayad sa nag-produce og electricity… Nganong mosaka siya usually during summer? It’s natural because number one is law of supply and demand. When demand is high, and supply remains the same, ang price ana mosaka gyud,” she said.

Sederiosa said that another reason the generation cost will go up is because demand will also go up that would lead VECO to augment the power supply from expensive power sources, which is the diesel plant.

She, however, assured that if the power rate increase will be implemented during the summer season, it will be reduced during the cooler months since VECO will not need to use an expensive plant.

During the public hearing called for by Cebu City Council on January 14, VECO chief of operating officer Sebastian Lacson apprised the body on the proposed power rate hike this year.

Lacson said that power consumers might face two power hike increases this year, excluding the possible P.30 to P.35kwh increase this month.

Lacson said that Energy Regulatory Commission already approved VECO’s petition to recover its investment in the underground cabling project which was considered as a capital expenditure, adding that ERC approved VECO’s petition to pass on the cost of the project to the consumers since it benefits the public.

Last year, VECO implemented a P78-million underground cabling project from the Capitol to the Fuente Osmeña rotunda.

This means, an additional P0.001 power rate increase per kilowatt hour. For an average consumer with 200 kilowatt-hours a month, it means an additional 20 centavos on the bill.

Another proposed power rate increase is still pending ERC’s approval, which is an additional P.60 on the generation cost since VECO needs to engage in private power sources to cope with the loss of the 30 percent supply from an expired contract last December 25.

For this proposed power hike, average consumers with 200 kilowatt-hours a month will have P12 added to their bill.

In the meantime, none of the three pending power rate increases has been implemented yet.

With the pending power rate increases, Sederiosa urged consumers to conserve power through unplugging unused appliances and using appliances that are energy efficient. —/BRP (FREEMAN)