By Francis Allan L. Angelo
Calls to address the sudden increase in electricity rates in Iloilo City are piling up even as the Energy Regulatory Commission (ERC) moved to address the situation.
In a letter to ERC chairperson Agnes Vicente S. Torres-Devanadera dated September 16, 2021, Koalisyon Bantay Kuryente president Halley T. Alcarde also raised concern on the spike in power rates in August due to high line rentals paid by MORE Electric and Power Corp. to the Wholesale Electricity Spot Market (WESM).
The high rental fee is due to the damaged 90 MW submarine cable connecting the Cebu-Negros transmission line of National Grid Corporation of the Philippines (NGCP).
The submarine cable was hit and eventually damaged by a backhoe of a Department of Public Works and Highways (DPWH) contractor while it was undertaking river dredging and project re-channeling along Bio-os River in Amlan, Negros Oriental on June 15.
Alcarde said the incident resulted in the decrease in NGCP’s transmission capacity to the Cebu, Negros, and Panay grids “thereby triggering price differentials and distortions in the market that led to the so-called very high line rental.”
“MORE Power, our distribution utility here, initially made an announcement that the increase in market prices will result in an additional P1.53 per kWh increase in its rate for the August billing alone,” he added.
Alcarde said that after nearly around 100 years, “Ilonggo consumers just tasted its lowest and historic billing amounting to P6.45 per kWh on July this year due to the efforts of our new distribution utility to help the Ilonggos who are now overburdened with so many things that were spawned by the pandemic.”
“All the while we were thinking that this problem in our electric bills is now taken care of, but we are very sad and utterly dismayed that because of this incident the NGCP has to impose ‘pass through charges’ together with the Wholesale Electricity Spot Market (WESM) through Independent Electricity Market Operator of the Philippines (IEMOP).
Alcarde said it would be unfair for all the consumers to “take on the burden of the degeneration of the NGCP’s energy transmission, even it is not of the consumers’ fault, but basically the result of the negligence and irresponsibility of the DPWH.”
“We would like to appeal to your good self to please intervene and look into this matter because if, indeed, the result of the recent WESM transactions of MORE Power showing a very huge amount in line rental will redound to consumers of Iloilo City paying high electricity rates, this is going to be offbeat at this time of the pandemic and most, if not all of the Ilonggo consumers, can no longer bear it at this point,” he added.
One Panay Consumer Association, Inc. and the group activist priest Monsignor Meliton “Dodong” Oso also echoed Alcarde’s concerns and call saying the submarine cable mishap resulted in power rate spikes not just in Iloilo City but electric cooperatives in Panay as well.
Meanwhile, Devanadera informed MORE Power in a letter dated September 13, 2021 that the ERC has met with NGCP and NGCP last September 7 to discuss the submarine cable incident.
The ERC also asked data from the Philippine Electricity Market Corporation (PEMC), which operates WESM, to aid in resolving the issue.
Earlier, MORE Power sent two letters to the ERC to seek clarification and guidance on the issue.
In a letter dated August 18, 2021, MORE Power President and COO Roel Z. Castro asked the guidance and assistance of the commission on the July 2021 (Wholesale Electricity Spot Market) WESM Bill of Independent Electricity Market Operator of the Philippines (IEMOP) to MORE Power.
The July 2021 WESM Bill covers the billing period from June 26, 2021 to July 25, 2021.
MORE Power noted that numerous extreme price separations were observed which is attributable to the incident that happened to one of the 2x90MW circuits of NGCP’s submarine cable between Cebu and Negros that limits the flow of power supply between islands.
The limitation in supply was further aggravated by the preventive maintenance of Palm Concepcion Power Corp located in Panay Island.
“This extraordinary market condition might extend until next year pending the repair of the damaged submarine cable of the National Grid Corporation of the Philippines.”
In another letter dated Sept 6, 2021, MORE Power said its generation charge “is projected to increase by 76% after hitting a record low of P3.55/kWh in July 2021.”
“MORE Power is bleeding to pay IEMOP a line rental amount of P164.4 million, more than twice that of P66.15 million from last month. This extreme price hike in WESM is projected to continue until December, pending complete repair of the NGCP’s damaged submarine cable. This means another unbearable four (4) months for the paying consumers just because of the underwater mishap of the DPWH’s operator. Relative thereto, MORE Power would like to respectfully request the immediate attention of the Honorable Commission to urgently look into the burden caused by the damaged submarine cable as this will continuously rip the consumers by paying exorbitant electricity rates.”
The distribution utility added that consumers are heavily affected by the sudden increase in rates caused by an extraneous event.
While MORE Power is succumbed to pay an extortionate amount of line rental, it is certain that generators savored the triumph of receiving huge amount from their WESM bill. While consumers wallowed in grief because of the increasing monthly electricity bill, DPWH’s dredging operator is just wandering out there, free of guilt. While we acknowledge that price mechanism in WESM is duly approved by the Commission, there are inevitable cases like this that mathematical formulas aren’t the feasible solution to the problem.”
