TALL TALE: Coop denies charging ‘highest power rate on the planet’

Guimaras Electric Cooperative (GUIMELCO) shot down accusations that it imposes the most exorbitant electricity rate on consumers, compared to other power distributors in the country.

In a statement, GUIMELCO labeled the allegations as “baseless and malicious” as its effective rate for the month of August 2021 is Php9.9694 per kilowatt hour (kWh) for residential consumers and Php8.5223/kWh.

Other cooperatives in Region 6 charge between P10 and P12/kWh.

According to GUIMELCO, “these irresponsible and unfair accusations against them are part of the tactics of some personalities to advance their political agenda.”

Based on the 2020 data from the Energy Regulatory Commission (ERC), GUIMELCO’s power rate is within the median of all power distributors in the country.

Of the 10 electric cooperatives in Western Visayas, GUIMELCO has the lowest power rate based on the August billing month, it added.

The cooperative said it has not charged consumers more than Php13.00/kWh in the past five years.

GUIMELCO stressed that the electricity rate it is imposing is approved by the ERC through Resolution No. 20, series of 2009, which determines the allowable charges that can be passed on to consumers through the Rate Setting for Electric Cooperatives – Wheeling Rate (RSEC-WR).

“The RSEC-WR uses various data such as the energy sales and the number of total consumers in determining the allowable pass-on charges of the distribution utility.”

It added that one of the main reasons for the fluctuating electricity rate is the generation charges which does not only affect GUIMELCO but other distribution utilities in the country as well.

The cooperative added that it has no control over the generation charge because power producers determine the rate.

“The generation charge depends on various factors: supply and demand, cost of electricity in the spot market, and the fuel cost which is beyond GUIMELCO’s control since the power generators have the sole authority to charge the same based on the prevailing market prices,” it added.

GUIMELCO also responded to accusations that it does not directly draw power from the Guimaras Wind Farm in San Lorenz town.

Republic Act 9513 (Renewable Energy Act of 2008) through the Feed-in Tariff Allocation (FIT-ALL) states that, “the priority purchase and transmission of and payment for, such electricity by the grid system corporation.”

According to the cooperative, the ERC decided that the supply from Guimaras Wind Farm will go directly to the Visayas Grid through the transmission system of the National Grid Corporation of the Philippines, which the ERC sees as the most effective way of distributing energy generated by the wind farm.

Drawing electricity directly from the wind farm will also affect rates, GUIMELCO said.

“Currently, our average generation rate for the year 2021 covering the period January -August 2021 billing is at P5.1729 per kWh. If the allegation that the wind farm can supply at P6 to P7, that would increase the total effective rate per kWh,” it added.

GUIMELCO added that only the distribution, supply, and metering charges go to the cooperative which is only equivalent to about 25% of the bill paid by consumers.

A large portion of the amount collected from the consumers is paid to power suppliers, NGCP, and the government.