The Negros Oriental Electric Cooperative 2 (Noreco 2) has assured it is finding ways, along with other power distributors in Negros Island, to reject the proposal of the Korean Electric Power Corp. (KEPCo) to increase its electricity rates.
NORECO 2 acting general manager Dionefred Macahig said that the coal-fired KEPCO plant in Naga, Cebu had a pending request with the Energy Regulatory Commission for a 45 centavos per kilowatt hour power rate hike.
KEPCO claimed that the proposed hike in power rates was due to a change of supplier of coal after a contractor in Indonesia no longer renewed its contract, said Macahig.
The five electric cooperatives in Negros Island that are clients of KEPCO are sharing the same position in opposing the planned increase, which Macahig said would be passed on to electric consumers if ERC will approve KEPCO’s application.
However, Noreco 2 was eyeing a possible fallback scenario to deflect another round of power rate increase if this would happen, said Macahig.
He disclosed that if ERC approves KEPCO’s request for a higher selling price, NORECO 2 will reduce its contract with KEPCO by at least 50 percent through an amended contract and source power from Wholesale Electricity Spot Market instead.
NORECO 2 was committed to KEPCO for a 16- megawatt supply contract and 25 MWs with Green Core Geothermal, Inc., said Macahig.
The shortfall of eight MWs, if KEPCO would increase its power rates and NORECO 2 would cut back on its contract with the former, would be supplied by WESM and only during zero peak load to avoid an increase in electric rates for NORECO 2 consumers, he said.
Of the three power utilities supplying electricity to NORECO 2, KEPCO charges P5.62 per kilowatt hour, followed by GCGI at P5.11 per kwh and with WESM having a varying rate between P4 and P8 per kilowatthour (kWh) depending on peak or off peak schedules.
The five electric cooperatives in Negros Island that opposed KEPCO’s proposed rate increase included NORECO I and NORECO II, Negros Occidental Electric Cooperative, Central Negros Electric Cooperative Inc., and VMC Rural Electric Service Cooperative Inc., said Macahig. (PNA)
