ERC considers power rate hike for MECO consumers

CEBU, Philippines — The Energy Regulatory Commission (ERC) has recognized the severity of the incident involving the National Grid Corporation of the Philippines Cebu-Mandaue Transmission Line 2.

The contractor of the Department of Public Works and Highways hit and caused damage to the said underground cable of NGCP on January 21, 2023

“The ERC recognizes the severity of the situation and has already begun studying possible pricing solutions to mitigate the impact of this incident on all MECO customers and locators in the ecozones,” said ERC officer-in-charge Catherine Maceda, in her letter to Mactan Electric Company, Inc. general manager, Engr. Gilbert Pagobo.

Maceda also assured that the ERC is taking all the necessary steps in coming up with other appropriate resolutions to the incident, including close coordination with all parties involved.

Pagobo earlier wrote a letter to the ERC to suspend the implementation of the power rate ranges from P2.40 per kilowatt hour to P4.00 per kilowatt hour by March of this year 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.

The Cebu-Mandaue Transmission Line is composed of two lines with a capacity of 138 kilovolt each. Line 2 is currently out in the system due to the said damage. The said transmission line is the only line connecting NGCP to Lapu-Lapu City and Cordova town.

An official of Mactan Export Processing Zone Exporters and Manufacturers said that so far their power rate remains more or less the same for this March billing cycle but they are apprehensive that this will increase as summer months are approaching.

The source, who requested anonymity, said they are opposed to any power rate hike as it is not their fault why the power line was damaged.

Lapu-Lapu City Mayor Junard Chan, Lapu-Lapu City Lone District Representative Cindi King-Chan and Cordova town Mayor Cesar Suan had expressed their strong opposition on the impending power rate hike contending it would be a grave injustice if their respective constituents will have to shoulder the power rate hike when in fact, it is not their fault why the transmission line 1 was damaged.

Cebu Governor Gwen Garcia met with representatives of different government agencies and discussed the looming power rate hike of MECO.

As posted on Facebook page of Sugbo News, the official FB page of the provincial government, it said that at the meeting on Monday, March 20, the representative of the Department of Public Works and Highways (DPWH) explained how the incident happened while MECO presented the current state of their operations.

Also in attendance during the meeting were representatives of the Mactan Export Processing Zone Chamber of Exporters and Manufacturers (MPEZCEM) and Provincial Engineering Office (PEO).

The governor is set to meet with representatives of NGCP, DPWH and the other agencies concerned today, March 22, to discuss steps to take to address the power issue. — GMR (FREEMAN)