P1 per kWh power rate cut seen from Ceneco-Primelectric deal
MANILA, Philippines— The partnership between an electric cooperative in Negros Occidental and a private company could bring down the power rate in the province by at least P1 per kilowatt-hour (kWh).
On Tuesday, the franchise application of the joint venture between the Central Negros Electric Cooperative’s (Ceneco) and Primelectric Holdings Inc. (PHI) called Negros Electric and Power Corp (NEPC) faced scrutiny at the Senate.
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If granted the franchise, NEPC President Roel Castro projected a lower electricity cost for its consumers in the province.
Castro said their current rate in Iloilo is P9.93 per/kWh.
“Just to enlighten the committee, when we entered Iloilo we immediately entered into an emergency power supply agreement with the existing power generators but we negotiated for a lower rate,” he said during the hearing of the Senate committee on public services.
“That’s why upon entering, we’re able to immediately reduce the rate by at least about a peso per kilowatt-hour and we intend to do the same… if granted a franchise, we would do the same as we enter this joint venture in Central Negros,” he said.
The NEPC made the remarks when asked by panel head, Senator Grace Poe, how much they plan to charge their customers.
During the hearing, Ceneco General Manager Atty. Arnel Lapore reported that their losses continue to rise while demand for electricity also increases due to the growing economy.
From P20 million in 2021, Ceneco’s system loss subsidy jumped to P173 million in 2022, Lapore said. Last year, he said, the recorded loss was at P149 million.
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“This caused so much injury to the financial conditions of Ceneco,” he said.
With a P2.1 billion investment from PHI, however, Ceneco is confident that its problems, including the power outages in Negros Occidental, would be addressed.
“In our five-year development plan, part of the P2.1 billion, we have already allocated P250 million for rural electrification,” Castro said in his opening statement.
NEPC also assured Ceneco employees that they would be given priority in hiring.
To date, Castro said, there are more than 250 Ceneco employees who have expressed their interest in joining NEPC.
“We hope that this honorable committee find merit to support this pioneering partnership between private investor and electric cooperative as this will clearly be to the best of interest of the member-consumers and will support the economic growth of Central Negros,” he added.
Poe recognized the joint venture as a “good arrangement,” considering the number of cooperatives whose franchises are already expiring.
Pending submission of pertinent documents, however, her committee suspended deliberations on NEPC’s franchise application.
