PUERTO PRINCESA CITY, Palawan (PIA)–The increase in power rates in December is a result of the full effectivity of the emergency power supply agreement (EPSA), where member-consumer-owners (MCOs) are paying the true cost generation rate (TCGR), Palawan Electric Cooperative (PALECO) explained.
In an advisory, the electric cooperative stated that from P13.67, MCOs will pay P14.71 per kilowatt hour (kWh) for the month of December in the absence of the universal charge for missionary electrification (UCME) for Delta P Inc. (DPI). The billing in December covers the consumption from October 25 to November 25.
PALECO further explained that during the billing in November, which covers the consumption from September 25 to October 25, there was still a subsidy from UCME given to DPI from September 25 to October 3.
“Para sa power rate sa buwan ng Disyembre, buong billing cycle nito mula ika-25 ng Oktubre hanggang ika-25 ng Nobyembre ay TCGR ang kinakailangang bayaran ng kooperatiba sa DPI.”
As EPSA was implemented on October 4, PALECO started to pay DPI the TCGR in accordance with Department Circular No. DC2023-06-0021 of the energy department.
The implementation of EPSA followed the issuance of a Supreme Court decision in 2019 for the petition of Alyansa Para sa Bagong Pilipinas, Inc., against the Energy Regulatory Commission (ERC).
The petition stated that the ERC has no power to defer the effectiveness of DOE Department Circular No. DC2015-06-0008, which mandates all distribution utilities to undergo a competitive selection process (CSP) in securing power supply agreements (PSA). All PSA applications filed in ERC as of June 30, 2015 should adhere to the guidelines of the DOE.
PALECO management received the order from ERC to suspend the PSA of PALECO-DPI on September 21 and has given a month for the transition period, which ended on October 21.
DPI supplies 20 MW to the main grid, covering Puerto Princesa, Roxas, Taytay, mainland Dumaran, Aborlan, Narra, Brooke’s Point, Sofronio Española and Bataraza.
EPSA was implemented to avoid a rotational blackout and will run for a year.
Meanwhile, PALECO, along with other local government units in Palawan and affected electric cooperatives in the country, appealed to amend Section 2.3.5 of DOE Department Circular No. DC2023-06-0021. The circular states that small power utility group (SPUG) areas like Palawan will not receive subsidies once they enter EPSA.
It is in contrast with Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, PALECO said. (RG/PIA Mimaropa-Palawan)
*Banner photo courtesy of the Palawan News website
