As NGCP cable gets damaged by digging: MECO power rate hike looms

CEBU, Philippines —  Mactan Electric Company (MECO) said it will be forced to raise its rate from P2.40 per kilowatt hour to P4 per kilowatt hour by March as an effect of a cut-off of the main transmission line cable due to diggings at the crossroads of Ouano Avenue and UN Avenue in Mandaue City.

MECO general manager Gilbert Pagobo, in a press conference yesterday, explained that their transmission charge and distribution charge will remain the same, but not the generation charge.

Currently, the generation charge is P8 per kilowatt hour and this may increase between 30 percent (P8 multiplied by 30 percent is P2.40 per kwh) to 50 percent (P8 multiplied by 50 percent is P4 per kilowatt hour) in the March billing.

Overall, MECO's power rate may increase between P14 to P15 per kilowatt hour from the current P12 to P13 per kilowatt hour.

The increase may last up to August or even beyond, depending on when the damaged transmission line is repaired.

“We are increasing because of certain system condition. The pricing of electricity is not just influenced by the system configuration and system limitation. The price of the sources is just the same, it is just that the system condition that changes the scenario of the system,” said Pagobo when asked why MECO will be increasing its power rate.

Pagobo said that the repair of the damaged transmission line may last up to six months but, as of now, there is no word yet from the National Grid Corporation of the Philippines as to when the repair would start.

According to Betty Martinez, NGCP Senior Supervisor for Government Relations and Regional Affairs, their head office is still to issue an official statement on this matter.

On January 21, 2023, Pagobo said that the main transmission line of NGCP was hit by a backhoe as the contractor of the Department of Public Works and Highways is currently doing digging for a road construction.

The main transmission line is composed of Line 1 and Line 2. Both lines supply power to MECO and the Visayan Electric. Each line supplies 180 megawatts per hour or a total of 360 megawatts per hour.

However, Line 2 was totally out from the system because of that digging incident. In order not to overload Line 1, VECO’s 100 megawatt load was transferred to their other substation in Mandaue City.

“This is a very significant load that saves Line 1 to be overloaded,” said Pagobo, allaying fears of a power shortage in the entire Mactan Island, including the town of Cordova. He said power demand remains low owing to cold temperature.

But he said power demand will increase by March as the start of summer season begins.

Pagobo explained that while VECO can transfer its load to their other sub-station, unfortunately for MECO, they do not have another line that feeds the entire Mactan and they are entirely dependent on the NGCP transmission lines.

Pagobo added that the worst scenario would be resorting to load shedding or rotational brownout should power demand get high and the repair of the transmission line last longer.

He said that he was requested by Lapu-Lapu City Mayor Junard Chan that should there be rotational brownouts in the city in the coming months, the first one to load shed should be the malls, hotels, some bigtime factories at Mactan Economic Zone including the Mactan-Cebu International Airport.

“Pero worst case scenario lang ni ha. These establishments have their own back-up generators. Kay ang instruction ni mayor, ang residential costumers dili dapat mo suffer. For example, kung mo-shutdown sa ilang power ang usa ka mall, it can electrify 3,000 households. Pero og mag rotational brownout, mga one to two hours ra na, dili pud whole day,” said Pagobo.

Pagobo further said that that this is the third time that a DPWH contractor hit NGCP’s main transmission line while digging. First incident was in 2015, next in 2019 and the latest on January 21, 2023.

“This is not acceptable for MECO kay ikatulo na ning higayon na igo ang transmission line,” said Pagobo.

He said that MECO cannot be totally enslaved with NGCP trandmission line forever as their source of power.

As a solution, MECO has invited some investors to put up a power plant in Mactan Island and for the latter to provide affordable, reliable and efficient power source.

In this way, Pagobo said, this will increase confidence among investors and increase economic activities in the island.

“We expect to make this happen in the next three to four years,” he said.

Cordova Vice Mayor Victor "Boyet" Tago, one of those who attended the event, said that they will pass a resolution urging NGCP and DPWH to shed light on this recent incident that will force the residents in Cordova and Lapu-Lapu City to be paying a higher power rate.

Tago said that he will also ask the help from Cebu Governor Gwendolyn Garcia and congressional representatives in the district and in Mandaue City, so that those who ate responsible will be held accountable. — JMD (FREEMAN)