BY IME SORNITO and MA. THERESA LADIAO
ILOILO – Members and consumers of Iloilo Electric Cooperative 1, Inc. (ILECO 1) expressed surprise at the significant increase in their electric bills for July and August, despite no prior advisory or information from the electric cooperative regarding the rate hike.
According to Hannah Tanaleon from Oton, Iloilo, their electric bill was relatively lower during the months of May and June. However, come July and August, they were shocked by the sudden rise.
“In the previous months, our bill was still manageable, but suddenly, our bill spiked last month and this month,” Tanaleon told Panay News.
Tanaleon speculated that the frequent brownouts might have caused the increase, as she had not heard any news or announcements from ILECO 1 about a rate hike in July or August. She appealed to ILECO 1 to notify consumers in advance if there will be an increase, so they can prepare accordingly.
“If they are going to increase the bill, they should handle it properly. We are paying a high amount, and yet we experience frequent brownouts, and sometimes they cut off the power without even informing us,” Tanaleon added.
Tanaleon’s family has now started to conserve electricity to manage the higher cost.
Similarly, Teresita Tiprado, 64, a resident of Tigbauan, Iloilo, said their bill increased this August to P1,500 compared to July’s P1,100.
“They said NGCP’s (National Grid Corporation of the Philippines) charges for electricity went up, which is why ILECO’s rates increased too,” Tiprado told Panay News.
Tiprado, while concerned, understood that the rate hike is beyond ILECO’s control. To cope with the higher costs, her family has also begun conserving energy.
“When there’s no one in the room, for example, we make sure to turn off the lights and electric fan. We also avoid charging devices unless the battery is really low,” Tiprado said.
She hopes that ILECO 1 or NGCP can clearly explain the reasons behind the increase to avoid confusion among consumers.
“And hopefully, they can find a way to lower the rates again because this is tough on consumers,” Tiprado said.
Meanwhile, Nelida Patingo from Cabatuan, Iloilo shared that their electric bill nearly doubled in July and August, even though they haven’t added any new appliances, and their electricity usage remained the same.
“In the past, we never reached P1,000, but this August, it went over P900. We were surprised because nothing has changed in our usage,” Patingo said.
Patingo called on ILECO 1 to issue advisories when rate increases are imminent, so consumers can prepare financially, noting that it’s challenging to find money to pay for the unexpected rise.
“If you don’t pay on time, they quickly cut off the service. And with no steady income, where will we get the money to pay for such a high bill?” Patingo lamented.
ILECO 1 Points to NGCP Line Rental Increase
ILECO 1 general manager Engr. Miguel A. Paguntalan Jr. explained the reasons for the rate hikes in July and August.
He revealed that in July, ILECO 1’s rate was P14.38 per kilowatt-hour, which further increased to P16.31 per kilowatt-hour in August. This was P3 to P5 higher than their regular rate of P11 to P12 per kilowatt-hour.
“One major factor that caused our rate to increase is the line rental. The impact of line rental on our charges is P3 to P5,” Paguntalan told Panay News.
He further explained that in July and August, NGCP implemented a contingency plan to stabilize the transmission grid in Barotac Viejo, Iloilo, by utilizing banker fuel or diesel fuel from other areas. NGCP observed congestion in the grid, which prevented power generators from supplying power to various electric cooperatives, including ILECO 1.
“NGCP declared congestion in Barotac Viejo, meaning our generators couldn’t bring in power from outside. So, NGCP generated supply locally using banker fuel or diesel fuel. When a generation company uses diesel, the cost usually ranges from P20 to P25 per kilowatt-hour in Manila. How much more in Iloilo? Diesel fuel is expensive to deliver, so it could be around P30 per kilowatt-hour, and that cost is passed on to consumers,” Paguntalan explained.
Paguntalan mentioned that if they had been informed in advance about NGCP’s contingency plan, they would not have agreed to it, as they knew it would significantly burden consumers with higher bills. Moreover, they could have explained the situation to consumers immediately to avoid misunderstanding.
“NGCP didn’t inform us. There was no consultation about this contingency plan. Didn’t they anticipate the effect of their actions on line rentals?” Paguntalan said.
As a result, electric cooperatives in the region have decided to file a case against NGCP in the coming days, requesting the suspension of the contingency plan that triggered the rate hikes.
Additionally, they will seek a refund for the excessive charges paid by consumers in July and August.
Paguntalan also mentioned that the rates for ILECO 1 could decrease in the September billing, following the intervention of the Sangguniang Panlalawigan (SP), which requested clarification from NGCP and the Energy Regulatory Commission (ERC).
Last week, the SP conducted a joint committee hearing in response to a privilege speech by 2nd District Board Member Rolito Cajilig entitled, “Rising Electricity Rates and Their Impact on Iloilo Residents”.
The hearing was led by the Committee on Transportation, Communication and Public Utilities, and the Committee on Barangay Affairs, with Paguntalan and ILECO III general manager Atty. James Balsomo in attendance.
The SP also plans to invite NGCP and ERC in the coming weeks to explain the reason behind the line rental increase and explore possible solutions to reduce the burden on consumers./PN