The truth about power cost

By Herbert Vego

 

HAVING written frequently about the energy situation here in Iloilo City, I occasionally bump into friends complaining about spiraling electricity bills from MORE Electric and Power Corp. (MORE Power).

Well, since the bill comes from the aforesaid distribution utility, that is understandable.

For that reason, we invited Jonathan Cabrera, MORE Power’s spokesman, to grace our radio program “Tribuna sang Banwa” (with Neri Camiña as co-host) on Aksyon Radyo yesterday.

“It’s not true that we have raised our share of the power cost,” Cabrera corrected the misconception. “We can’t jack that up because we are subject to regulation by the Energy Regulatory Commission (ERC), which has allowed us to charge only one peso and thirty centavos per kilowatt-hour.”

Simply stated, while the bill shows a much higher “total,” only P1.30 goes to MORE Power. Other charges include generation and transmission costs, among other ERC-approved entries.

This means that for a modest consumption of 100 kilowatt-hours, only P130 goes to MORE coffers; the bigger amounts are forwarded to power suppliers and the National Grid Corporation of the Philippines (NGCP).

The NGCP has the crucial role of linking power generators and distribution utilities to deliver electricity where it is most needed.

“MORE Power buys energy at lowest prices,” Cabrera said.

That is possible because the distributor has the option of sourcing out supply from various sources at the lowest cost. These power suppliers include Palm Concepcion Power Corp. (PCPC), Panay Power Corp. (PPC), Panay Energy Development Corp. (PEDC), Aboitiz Power and KEPCO-Philippines.

In January 2019, the lowest generation cost was only P6.63/kwh. Adjusting for inflationary pressure, however, the generation cost may have already exceeded P9/kwh.

Probably unknown to most paying power consumers is that they also bear the added burden of paying for 6.5 percent of systems loss or electricity bypassing electric meters. Whatever excess of that percentage, the distribution utility pays.

But of course, the legally energized neighbors would not want to co-exist with power pilferers. The former may squeal because it’s they who bear the added burden.

No wonder, when MORE Power took over the distribution function from the previous utility, they discovered around 30,000 consumers tapping electricity from street lines through gadgets collectively known as “jumpers”.

MORE Power is taking steps to reduce the monthly bills of customers by cutting down systems losses, which reached had 9.03 percent.

More Power President Roel Z. Castro revealed that the company had given all pilferers to “legalize” by applying for electrical installation at the least cost possible – a bill deposit of only P2,500. The indigents may even pay the amount on installment.

Otherwise, should they persist in thievery, they would be liable for violation of the anti-power pilferage law (Republic Act No. 7832), punishable by six years imprisonment or more, or made to pay a fine ranging from P10,000 to P20,000. In fact, some of them – especially those engaged in selling “jumpered” connections — have already been charged in court.

There are areas where illegal connections are clustered. There was a single day, for instance, when the apprehension team led by Ariel “Aye” Castañeda discovered 27 illegal connections fastened to street lines with alligator clips. The perpetrators have been identified for proper filing of criminal charges.

Among them are “fixers” identified with well-connected syndicates who are also suspects in illegal drug trading and gambling, and those in cahoots with City Hall employees, barangay captains and councilmen.

It’s no joke pinpointing the culprits, considering their extensive area of operation covering 180 barangays. MORE would need at least three years (effective March 2020) to finish improving electricity supply, further lower the monthly bills and handle the fast-growing demand for power by industrial users.

The lesser the power pilferers, the more money the power consumers of Iloilo City save.