High power rates due to lacking requirement
Power Energy

High power rates due to lacking requirement

Aug 1, 2022, 3:56 AM
Joyce Kahano-Alpino

Joyce Kahano-Alpino

Writer

Consumers in Eastern Visayas had long been complaining over the incessant increase of power rates despite the alleged "unsatisfying" power supply they receive.

The said "unjust" rate is due to the ineligibility of the Energy Development Corp. (EDC) to participate in the competitive selection process (CSP) which leads host communities to continue suffering from their high monthly electric bills.

“We wanted to supply power in the region, but we are ineligible to participate in the CSP due to one requirement,” Erwin Magallanes, head of the corporate relations department of EDC’s Leyte geothermal facility said.

Disappointingly, one requirement is said to be a power generator to possess a “new power plant or a power plant expansion to supply its power requirements" as set by the Federation of Rural Electric Cooperatives (Frecor) 8.

Because of the said prerequisite, the EDC did not qualify to participate in the bidding process, considering that all the company’s power plants have already been existing for years.

At present, only the Leyte II Electric Cooperative (Leyeco) based in Tacloban City, and Leyeco III based in Tunga, Leyte maintain a Power Supply Agreement with EDC, which emanated from the energy generator’s amended offer to all-electric cooperatives (ECs) in the region in 2014.

“Because of this, out of 11 ECs in Eastern Visayas, only Leyeco II and Leyeco III have the present contracts from EDC through its Green Core Geothermal, Inc. geothermal facility,” Magallanes added.

Electric consumers of Leyeco II, which charges the lowest rate among the 11 electric cooperatives in Eastern Visayas, are paying currently PHP11.95 per kilowatt-hour (kWh), slightly lower than the PHP12.0991 per kWh as of June while the Don Orestes Romualdez Electric Cooperative (DORELCO), with a franchise area in the central part of Leyte, charges consumers PHP16.92 per kWh. The rate was PHP15.16 per kWh in June.

“While members of Frecor-8 have signed long-term contracts, we can supply from our limited uncontracted capacity. We are prepared to offer energy from geothermal to help lower the average electricity cost of their consumers,” Magallanes added.

Consumers however are asking at what point will the increasing power rate stop to at least allow themselves a breather from rocketing electricity bills in addition to increasing costs of basic necessities.

The EDC is First Gen’s 100 percent renewable energy subsidiary and has more than 1,480 MW total installed capacity accounting for 20 percent of the country’s total installed renewable capacity.


We take a stand
OpinYon News logo

Designed and developed by Simmer Studios.

© 2024 OpinYon News. All rights reserved.