High Power Rates in Ilocos Condemned by Consumers

The Power for People Coalition (P4P) has criticized the high power rates charged to Ilocos Sur and Ilocos Norte residents despite the latter serving as the home of the Bangui Windmills.

Served by the Ilocos Norte Electric Cooperative (INEC), the residents of Ilocos Norte shell out a total unbundled rate of ₱16.767 per kilowatt hour. On the other hand, the Ilocos Sur Electric Cooperative Inc (IESCO) serves the residents of Ilocos Sur and shells out ₱16.1192 per kilowatt hour.

To compare, the Manila Electric Company (Meralco) charges its consumers ₱9.7545.

Gerry Arances, P4P Convenor mentioned that “It is unconscionable for any Filipino to pay more than 16 pesos per kilowatt hour for their electricity, especially in Ilocos, a region not as developed as the National Capital Region, a region that has abundant potential renewable energy, and a region that has recently suffered from a natural disaster. You know you’re really doing something wrong if Meralco looks good compared to you,”

Arances said that coal is the number one reason for the high power rates in the Ilocos area due to the power supply agreements (PSAs) of the two electric companies.

“INEC’s active PSA is with Masinloc Power Partners, which operates the Masinloc coal plant. ISECO has PSAs with Masinloc, GN Power Mariveles, and San Miguel Consolidated Power Corporation, which operates the Limay coal plant. With fossil fuel prices rising since the relaxation of the quarantine and the war in the Ukraine, the situation in Ilocos shows how consumers are punished by the decision of the government and generation companies to rely on coal,”  mentioned Arances.

Source: Business Mirror