GUIMELCO Faces Complaint Over High Electricity Rates

By Rjay Zuriaga Castor

The Guimaras Electric Cooperative (GUIMELCO) is facing a formal complaint after a petition was filed with the Energy Regulatory Commission (ERC) regarding a significant increase in electricity bills.

The petition, filed on October 11 by former Buenavista Mayor Eugenio G. Reyes, former Guimaras Vice Governor Ronnie L. Ferrer, Atty. Vicente B. De Asis, Allan M. Chavez, and Sem Galve, targeted the cooperative’s high electricity rates and questioned its power supply agreements.

The petitioners also pushed for the cancellation of power supply agreements between GUIMELCO and its suppliers, including Panay Energy Development Corporation (PEDC) and GNPower Kauswagan Ltd. Co.

In recent months, GUIMELCO’s residential electricity rates have fluctuated. In May 2024, the rate was PHP14.4686 per kilowatt-hour (kWh), dropped to PHP10.4135 per kWh in June, then surged to PHP15.2465 per kWh in July. By August, rates peaked at PHP17.6750 per kWh before settling at PHP15.1434 per kWh in September.

As of September, GUIMELCO had the second-highest residential electricity rate among electric cooperatives in Western Visayas.

According to its September 2024 generation charge, GUIMELCO sources power from the Independent Electricity Market Operator of the Philippines, which operates the Wholesale Electricity Spot Market (WESM).

It also holds bilateral contracts with independent power producers, including PEDC, GNPower Ltd. Co., and Green Core Geothermal Inc. (GCGI).

GUIMELCO’s power supply in its latest billing consisted of 36.38% from GCGI, 24.17% from PEDC, 24.25% from GNPower Ltd. Co., and 15.13% from WESM.

The petitioners urged that bilateral generation contracts be subjected to open and competitive bidding to protect consumers.

Renewable Energy as Power Supply

The petition also highlighted the need for GUIMELCO to provide direct benefits to Guimaras, which hosts the 54-megawatt (MW) Guimaras Wind Farm owned by AC Energy. Operating since 2014, the wind farm generates over 120 gigawatt-hours annually, enough to power more than 48,000 households.

Reasons for Spike in Power Rates

In May, GUIMELCO attributed the rise in electric bills to high prices from the WESM. In August, GUIMELCO had the highest residential electricity rates on Panay Island.

The August increase was linked to a staggered payment plan for WESM bills and rising line rental costs due to congestion in the National Grid Corporation of the Philippines (NGCP) system in Panay. This payment plan was implemented from June to September.

GUIMELCO also blamed the rate hike on the N-1 Contingency Plan implemented by NGCP on September 8, which limited power supply and activated more expensive diesel and bunker-fueled generators.

However, the plan was lifted on October 9, and power rates began to decrease, a trend expected to continue in October.

The Electric Cooperatives Association of Region VI, Inc. (ECAR-VI) criticized the excessive line rental charges imposed on cooperatives.

“The cooperatives had already secured more affordable power contracts prior to this scheme. Now, ECs are forced to rely on much more expensive power, a situation that is both unfair and unsustainable,” said Shirley S. Laurente, GUIMELCO general manager and ECAR-VI president.