Electric Cooperatives Charges Php 1 per kWh only for Distribution System and Services
PHILRECA releases in a statement that electric cooperatives only charge its member-consumer-owners (MCOs) for its distribution system and services a little over Php 1 for every kilowatt-hour (kWh) consumption reflected in their electricity bills – a third of how much other private distribution utilities charge their consumers at more than Php 3 per kWh. This clarification was issued in relation to the information released by the National Grid Corporation of the Philippines (NGCP) over the weekend.
In an infographics released by NGCP to the media, the system operator claimed that it only charges around 4% for transmission charges while the generation charge collected from consumers to pay the power plant owners and operators amounts to 44.03% and the distribution charge, 33.49%. Converted in terms of peso per kWh consumption, this distribution charge amounts to more than Php 3 pesos per kWh.
PHILRECA Executive Director and General Manager Atty. Janeene D. Colingan said that the infographics released by NGCP does not refer to electric cooperatives.
“Just to clarify the reports, the information on distribution utility charge released by NGCP is based on the billing statement of a residential consumer from the largest electric distribution utility, and is not referring to the case of the electric cooperatives,” Atty. Colingan said.
“While percentages vary, electric cooperatives only retain for distribution system charges at least 10% of the total electricity bill of the MCOs. We presented this in a Public Hearing held by the Committee on Energy of the House of Representatives last May 27, 2020,” according to Atty. Colingan.
In the said hearing, she reported that in terms of share for every one peso paid by consumers for its electricity bill, the distribution/supply/metering (DSM) charges of electric cooperatives only amount to a little more than Php 0.10.
“There were no instances where the distribution charge of electric cooperatives would reach 33.49% of the effective power rate of the DU. Case in point: In a member-electric coop with an effective power rate of Php 9.41 per kWh, transmission charge is 15.50% of the effective rate, while DSM charge [the amount collected by the Distribution Utility for its operations] is only 11.00%. In another coop with an effective power rate of Php 7.69 per kWh, transmission charge is 15.81%, while distribution charge is 17.16%,” explained Atty. Colingan.
“Electric cooperatives are the government’s staunchest and most ideal partner in total electrification. We have energized the most far-flung areas in the country long before others have taken interest in servicing them,” said Presley De Jesus, President of PHILRECA, in a statement.
“We were created to become service-oriented and not profit-oriented utilities. The fact that we do not factor in any profit in our rate-setting mechanism ensures that our member-consumer-owners will get the most affordable energy rates possible,” added De Jesus.
PHILRECA is the association of all 121 electric cooperatives operating in the country.
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