This month, electricity rates in the Western Visayas and Negros Island Region have seen some fluctuations, primarily influenced by changes in generation and transmission charges. Despite these increases, some companies have managed to keep costs low thanks to efficient procurement strategies.
Read: Timely Solutions: NEPC’s 5-Year Development Plan for Negros Occidental
MORE Power: Lowest Electricity Rate in Panay and Guimaras
In Iloilo City, MORE Power continues to provide the most affordable electricity rates across Panay and Guimaras islands. For September, their residential rate stands at P12.61/kWh, reflecting a slight decrease of P0.04/kWh from the previous month. Their Generation Charge of P6.76/kWh is the lowest in the region, a result of their strategic power procurement practices.
By securing favorable contracts with power suppliers, MORE Power is able to keep the cost of power generation low. Since generation charges are pass-through costs, they are simply transferred to consumers without any profit to the distribution utility. MORE Power’s efficient procurement ensures that consumers benefit from these lower rates, which is crucial in a time of fluctuating energy prices.
CENECO/NEPC: Cheapest Rate in Western Visayas and Negros
CENECO/NEPC in Bacolod City and Central Negros, despite an increase in generation charges, offers the lowest residential rate in the entire Western Visayas and Negros Island Region at P11.70/kWh. Even with the slight increase in generation costs, their rates remain competitive, demonstrating the balance between smart procurement and maintaining low prices for consumers.
No Increase in Distribution Charges
“As a distribution utility, there is no increase in the distribution charge. As we all know, generation charges constitute a significant portion of our total electricity rates per kilowatt hour. We remain steadfast in our commitment to efficient electricity supply trading in the market, ensuring that we secure the most competitive prices to deliver affordable rates to our consumers,” said Negros Power Spokesperson Jonathan Cabrera.
Rising Rates in Other Electric Cooperatives
Other electric cooperatives across the region have also seen increases in their total residential rates, largely due to rising generation and transmission charges. These charges are directly passed on to consumers, reflecting the costs of producing and delivering electricity. However, the distribution charge, which covers the costs of maintaining the distribution network, has remained stable.
Comparative Electricity Prices in the Region
Here’s a snapshot of electricity rates for September 2024 in Western Visayas and Negros Island:
- MORE Power (Iloilo City): P12.61/kWh
- CENECO/NEPC (Central Negros): P11.70/kWh
Read: Mayor Albee Benitez on Negros Power’s Modernization Plans
Transition to Negros Power: CENECO’s Joint Venture Agreement
Those familiar with CENECO’s Joint Venture Agreement (JVA) with Primelectric may be wondering why CENECO is still the one billing power consumers. Although CENECO has entered into the JVA with Negros Power to improve services and infrastructure, Negros Power currently lacks a Certificate of Public Convenience and Necessity (CPCN) from the Energy Regulatory Commission (ERC). Without this certification, Negros Power cannot yet assume full responsibility for billing and other consumer-facing transactions. For now, CENECO continues to handle the billing while Negros Power manages the operation, maintenance, and management of facilities as part of the transition process. Once the CPCN is issued, consumers can expect Negros Power to take full control of these services.
This means that CENECO is still responsible for billing, and consumers are paying through their existing CENECO accounts. Negros Power, on the other hand, has taken charge of the management, operation, and maintenance of the facilities at CENECO’s request, as they have already paid for the assets. This setup is part of the transition phase, and once Negros Power receives the CPCN, they will take full control of operations. Until then, consumers will continue to interact with CENECO for billing and payments.
While electricity rates in the Western Visayas and Negros Island Region have experienced some fluctuations this month, companies like MORE Power and CENECO/NEPC continue to navigate these changes effectively. Their strategic procurement practices and commitment to maintaining stable distribution charges are crucial in providing affordable electricity to consumers.
