ILECO II: Spike in billings due to market power rates

By Rjay Zuriaga Castor

Iloilo Electric Cooperatives (ILECO) II said the sudden increase in consumers’ electricity bills is attributed to the rising market power rates in recent days, exacerbated by increased demand due to sweltering heat.

“Isa pagid ka rason ang pagtaas ka presyo sang kuryente sa Wholesale Electricity Stock Market ukon WESM. Isa ini sa mga ginabul-an naton sang supply sang kuryente. Amu ini ang isa sa mga rason kung ngaa nagasaka ukon nagapanog ang aton rate,” the distribution utility said in a statement on Wednesday.

[The increase in electricity prices in the Wholesale Electricity Spot Market or WESM is another reason we are considering. This is one of the factors affecting the supply of electricity. This is one of the reasons why our rates fluctuate.] 

WESM functions as the primary platform for electricity trading, enabling power generators to offload surplus capacity and distributors, like rural electric cooperatives, to procure additional power when necessary.

The statement of ILECO II is in response to complaints from consumers who noted nearly double their electricity bills despite similar consumption patterns.

ILECO II serves the municipalities of Pototan, Mina, Calinog, Bingawan, Lambunao, Janiuay, Badiangan, Dueñas, Dingle, San Enrique, Zarraga, New Lucena, Barotac Nuevo, Dumangas and the component Passi City.

ILECO II also attributed the increase in the delay in the reading of meters. It noted that there is a delay of three or four days in the reading, which extends the billing cycle to 33 or 34 days.

It added that the changes in rates encompass various charges, including those for generation, transmission, system loss, universal charge, government taxes and revenue, distribution, supply, and metering system.

“Every month, the transmission charge depends on the power demand of the electric cooperatives and this is being paid by an electric cooperative (ILECO II) to the National Grid Corporation of the Philippines (NGCP),” it said.

The distribution utility added that another contributing factor may be the rise in the consumption of electricity of consumers in April due to the scorching heat.

“As the temperature rises, our electric fans and air conditioners consume more electricity because we use them for longer periods without interruption,” it said.

To mitigate electricity usage, ILECO II advised consumers to disconnect appliances not in use, switch off lights during daytime, and utilize washing machines during off-peak hours, among other measures.

Engr. Jose Redmond Roquios, General Manager of ILECO II, advised consumers that their office is open for billing complaints, especially in making adjustments to the bills if discrepancies to the reading are found.

“If we have a basis to believe that there is an error in the reading, they (consumers) can just file a complaint and we will adjust it,” he said in an interview with DYRI RMN Iloilo.

The Energy Regulatory Commission on April 30 directed WESM to temporarily halt operations in Luzon and the Visayas during red alerts to curb the rising power rates.

A red alert status is issued by the NGCP when the power supply is insufficient to meet consumer demand and the transmission grid’s regulating requirement.