ERC Urged to Investigate GUIMELCO’s Power Deals

By Rjay Zuriaga Castor

Member-consumer-owners (MCOs) of the Guimaras Electric Cooperative (GUIMELCO) have filed a petition with the Energy Regulatory Commission (ERC), calling for an investigation into the cooperative’s recent electricity purchases due to concerns over high power rates.

The petition, signed by over 100 members, specifically requested the ERC to examine GUIMELCO’s purchase of electricity at PHP 36.5833 per kilowatt-hour (kWh) from the Independent Electricity Market of the Philippines (IEMOP).

According to the petition, GUIMELCO’s August billing showed a generation charge that included 5.55 megawatts (MW) of consumption, with 0.93 MW purchased from IEMOP at the elevated rate of PHP 36.5833 per kWh.

Petitioners argued that the cost per kWh from IEMOP “violates” the PHP 32 per kWh price cap set for electricity traded on the spot market, as mandated by the Wholesale Electricity Spot Market’s tripartite committee.

The committee, which includes the ERC, the Department of Energy, and the Philippine Electricity Market Corporation, established the PHP 32 per kWh ceiling to shield consumers from excessively high electricity rates.

The MCOs highlighted an “unreasonably high electricity rate” charged by GUIMELCO in August.

In August, GUIMELCO’s residential electricity rate reached PHP 17.6750 per kWh, the highest among electric cooperatives and distribution utilities in Western Visayas.

“The electricity cost in our province is among the highest in the country, placing a significant burden on households, businesses, and Guimaras’s economy,” the petition stated.

In May 2024, the rate stood at PHP 14.4686 per kWh, decreased to PHP 10.4135 per kWh in June, then rose to PHP 15.2465 per kWh in July, and slightly dropped to PHP 15.1434 per kWh in September.

The petition noted that GUIMELCO has three power suppliers: Green Core Geothermal Inc., supplying 3 MW at approximately PHP 6 per kWh; Panay Energy Development Corporation, providing 2 MW at around PHP 6 per kWh; and GN Power Kauswagan, also supplying 2 MW at roughly PHP 6 per kWh.

While Daily Guardian confirmed GUIMELCO’s contracts with these Independent Power Producers, the exact supply amounts could not be verified.

The petitioners are also seeking a refund for alleged overcharges on their August bills.

Daily Guardian has reached out to GUIMELCO for comment but has yet to receive a response as of this writing.