ILOILO CITY residents got a nasty surprise in their May 2024 electric bills – a sharp rise in electricity rates. Why the spike? Blame it on the soaring generation costs at the Wholesale Electricity Spot Market (WESM).
Shirley Laurente, president of the Electric Cooperatives Association of Region VI, Inc. (ECAR-VI), explained that while cooperatives usually rely on contracted power suppliers, they’ve had to turn to WESM to fill gaps, thanks to a string of unfortunate events.
In May, the generation charge surged, a cost directly passed on to consumers. Lawyer Janeene Depay-Colingan from PHILRECA highlighted a hefty 16.57 percent hike in residential rates, jumping from P13.378 per kWh in April to P15.56 per kWh in May.
Spike is Temporary
Why the sudden jump?
It’s a perfect storm of problems: the shutdown of geothermal plants since April, six power plants down due to mechanical failures, scorching heat indices, and skyrocketing consumer demand.
James Balsomo, general manager of Iloilo III Electric Cooperative (ILECO III), described the increase as extraordinary. For instance, ILECO III’s consumption shot up to 16,762,285 kWh in April from 13,619,114 kWh in March.
But there’s hope. Balsomo assures that this spike is temporary. As the weather cools and demand normalizes, so should the rates.
Quick Fix
Meanwhile, PHILRECA has proposed some quick fixes: fast-tracking emergency power supply agreements and speeding up the approval of new power plants, especially those focusing on renewable energy.
So, while May’s bill might burn a hole in your pocket, there’s a light at the end of the tunnel.
Hang tight, and let’s hope for cooler days ahead.
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