BACOLOD CITY — Residents of Bacolod and five neighboring local government units (LGUs) can anticipate a decrease in residential power rates ranging from PHP3 to PHP4 per kilowatt hour (kWh) in the next billing cycle. This reduction is primarily due to a decrease in generation charges and the provisional approval granted by the Energy Regulatory Commission (ERC) to implement a power supply agreement (PSA) between the Central Negros Electric Cooperative (Ceneco) and the Energy Development Corp. (EDC).
According to Philippines News Agency, who spoke at a press conference on Monday, the rate reduction results from recent regulatory approvals. "It would be a reduction of almost PHP3 to PHP4 per kWh. They just approved it. We have to wait another month before we can feel it in our electric bill," Benitez stated. He detailed that the generation charge would decrease by just under PHP2, while geothermal energy supplied by EDC would further reduce power costs by PHP1.50 to PHP1.80 per kWh.
Ceneco's acting general manager, Arnel Lapore, mentioned in a radio interview that the delivery date for their contract with EDC is set for June 26. He expressed optimism that EDC could start supplying power earlier, potentially allowing consumers to experience the rate impact within June. Lapore also noted that sourcing electricity from EDC would decrease Ceneco’s reliance on the Wholesale Electricity Spot Market (WESM) by 20 percent.
The ERC's recent statement clarified that it informed Ceneco of the interim approval on May 30, following a notice of resolution dated May 29, which permits EDC to supply power at PHP5.5657 per kWh. "The ERC’s action on the PSA application is expected to reduce Ceneco’s generation rate amidst high electricity prices in the province, as well as mitigate its exposure to the WESM, where the electric cooperative is observed to be buying almost 74 percent of its supply," the ERC explained.
Furthermore, the ERC emphasized that the approved provisional rate could lead to refunds if the final rate determined after review is lower. EDC would be required to refund any excess charges to Ceneco, which would then credit the amounts to the electric bills of consumers.