by Angeline Valencia
Consumers’ complaints against the power rate increase imposed by power distribution utilities prompted the Regional Development Council (RDC)-7 to seek actions from the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to ease its impact on livelihood and investments.
Upon the move of Gov. Edgar Chatto, the RDC unanimously agreed to set a special meeting with DOE and ERC officials to look into the pricing formula adopted by power distribution utilities.
In the meeting, components of the electric bills increase will be examined as well as the effect of the increase of prices in the Wholesale Electricity Spot Market (WESM) and high generation cost.
It will be attended by key players of the energy sector in
Bohol.
Chatto had earlier brought such concern to power utilities in Bohol such as the Bohol Light Company Inc. (BLCI) and Bohol Electric Cooperative I and II to check the impact of the WESM price increases and the high generation cost to their respective distribution units.
In response, the power distribution utilities in Bohol clarified that they get nothing from the power rate increase reflected in the electric bills of the consumers. They explained that they merely passed on the high generation rate increase and the WESM price increase.
BLCI spokesperson May Hope Arcenal earlier said that the generation charge has increased by 85 centavos per kilowatt-hour.
Another factor that Arcenal cited was the high cost collected by the Power Sector Assets and Liabilities Management Corp. and the National Power Corp.
Boheco has imposed an increase of P1.06 per kWh, while BLCI placed it at P1.54 per kWH as reflected in the billing for the months of May and June.
Meanwhile, in its full council meeting held at Bohol Cultural Center on June 28, the RDC-7 approved a resolution endorsing the proposed restructuring of the Energy Regulatory Commission to the Office of the President.
RDC-7, now chaired by Cebu City Mayor Michael Rama, cited in the resolution that the ERC’s main function is to promote competition, encourage market development, ensure customer choice and penalize abuse of market power in the restructured electricity industry.
This is based on Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 that created the ERC as an independent, quasi-judicial regulatory body.
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