• GILBERT P. BAYORAN
Residential consumers of Negros Electric and Power Corp. (Negros Power) will only pay an additional P0.20 per kilowatt-hour (kWh) in their July electricity bills despite a P1.70 per kWh increase in the blended generation cost.
The remaining amount will be collected on a staggered basis over the succeeding months, pending approval by the Energy Regulatory Commission (ERC) and the Independent Electricity Market Operator of the Philippines (IEMOP).
As a result, the current residential electricity rate will increase from P13.84 per kWh to P14.04 per kWh this month.
This was confirmed by Neil Parcon, vice president for Corporate Energy Sourcing and Commercial Affairs of Primelectric Holdings Inc., at the Visayas Power Forum: Grid Reliability and Electricity Price Outlook held at SMX Convention Center in Bacolod City on Monday, July 13.
Parcon said he expects electricity rates to decline in the coming months as supply conditions improve.
He noted that Panay Energy Development Corporation (PEDC) Unit 3, one of the three major generating units that had been on outage, has already resumed operations, contributing to the decline in Wholesale Electricity Spot Market (WESM) prices observed during the past week.
“Electricity prices in the WESM have started to decline although they have not yet returned to the levels seen before the surge over the past two months,” he said.
Parcon expressed optimism that electricity rates for the remaining five months of the deferment period would be lower than the July rate.
He attributed the recent spike in electricity prices to prolonged outages of major power plants, transmission constraints, and limited reserve capacity across the Visayas Grid.
These conditions triggered recurring yellow and red alerts, significantly driving up WESM prices and increasing generation charges passed on to consumers throughout the region.
Parcon said the recent increase in electricity rates is primarily driven by developments in the generation sector rather than distribution utilities.
He noted that average generation rates among Visayas distribution utilities rose by about 40 percent during the June billing period.
Moreover, WESM prices surged by 86 percent compared to previous months as major generating unit outages and limited transmission capacity reduced available power supply, causing electricity market prices to escalate.
The Visayas Power Forum, which was co-hosted by Primelectric Holdings Inc., More Power, Negros Power and Bohol Light Company, gathered key stakeholders from the power industry, government agencies, business groups, and the media to provide factual, transparent, and evidence-based discussions aimed at improving public understanding of issues affecting the region’s power sector.
Other speakers included Joseph Ladrido of the Institute of Contemporary Economics, Engr. Robinson Descanzo of IEMOP, Department of Energy Director Luningning Baltazar, ERC representative Antonette Badillo, and Atty. Richard Nethercott of Primelectric Holdings Management Inc.
Former Negros Occidental Governor Rafael Coscolluela and Frank Agsam Carbon, vice president of the Philippine Chamber of Commerce and Industry-Metro Bacolod Chamber of Commerce and Industry were among the participants. | GPB
