Ceneco says rates based on ERC guidelines

By Dolly Yasa

BACOLOD City – Central Negros Electric Cooperative Inc. (CENECO) said its monthly power rates are computed in accordance with the guidelines of the Energy Regulatory Commission (ERC).

CENECO issued the statement amid questions raised by concerned sectors on the purported “questionable computed rates” during the period of community quarantine.

In a statement, Ceneco said the generation and transmission charges are “complete pass-through charges.”

The cooperative said it is only a collecting agent on behalf of the power suppliers and transmission service providers. It added that its revenues remained constant at P1.18 per kilowatt-hour since 2010.

CENECO also said that the rate increase in May 2020 that covered the electricity consumption during the enhanced community quarantine and a portion of April and May “was mainly attributed to the reduction in the total energy consumption during the period.”

It further said that starting mid-March, non-residential consumers such as commercial and industrial, have gradually reduced or even halted operations as mandated by the government to ensure safety against the coronavirus disease.

“This resulted in decreased power demand from big loads, such as malls, hotels, resorts, restaurants, and other business establishments. With the fixed cost component of the generation and transmission charges, the reduction in the total energy consumption resulted in an increase in the rate per kilowatt-hour.”

The fixed cost refers to the cost charged by power suppliers and transaction services that do not change regardless of the volume of energy consumed, it further stated.

CENECO further said that the share of electricity consumption of residential consumers significantly increased from 45 percent to 65 percent, while that of non-residential users decreased from 55 percent to 36 percent.

“Ceneco having increased its rates compared to other coops in the province was due to its consumer profile, with a highly-urbanized city of Bacolod in its coverage area.”

The cooperative also said that the accelerated increases were the result of the implementation of its “projected estimate” of the monthly bills because they were not able to conduct an actual meter reading due to the quarantine.

There was an increase of P0.5315 per kWh this May. April had a lower rate compared to May, CENECO added.

Bacolod City Councilor Archie Baribar called for a public hearing on the matter.

Baribar said they have requested CENECO to also give a “projected estimate” of the monthly bills of commercial and industrial consumers that continued to operate in March and April.