By ERWIN ‘AMBO’ DELILAN
NEWLY-installed acting general manager (AGM) of Central Negros Electric Cooperative (Ceneco), Atty. Arnel Lapore, has no choice but to launch a so-called war on system loss (WOSL).
This, as National Electrification Administration (NEA) administrator Antonio Mariano Almeda, during Lapore’s installation on Jan. 19, has these two tall mandates within his 60-day provisionary period.
* reduce Ceneco’s system loss
* improve coop’s collection efficiency
Of the two, however, the most challenging or tedious is system loss.
But Lapore, who is no stranger to Ceneco being a former president of the board of directors, accepted Almeda’s challenge sans “buts and ifs”.
Almeda said, “Lapore’s fate to become permanent GM of Ceneco depends on his performance.”
Well, Ceneco’s current system loss is 10.30%.
Atty. Lapore, per Almeda’s order, must reduce such to single digit or the most at only 8.25% – the allowable Distribution System Loss (DSL) cap for Ceneco being rated as a “Triple A” electric coop.
Can Atty. Lapore rise above the challenge? Let’s see!
‘7 WONDERS’
First thing first, what is system loss charge? Why does it affect our monthly electricity billing?
Dubbed by many, system loss is among the “7 Wonders” in the power industry.
Such is mandated within in the orb of Energy Regulatory Commission (ERC) Resolution No. 20, Series of 2017.
Too, it’s pursuant to ERC’s roles duly specified under Republic Act 9136 or the Electricity Power Industry Reform Act (EPIRA) Law.
Therefore, ERC determines the system loss percentage to be collected by the power distribution utilities (PDUs) in the monthly billings of the power consumers.
“Wonder” in the sense that the burden of paying such is passed on to the consumers.
System loss charge is considered an indirect tax as it represents lost electricity not actually used.
The six other “wonders” are:
* subsidy on lifeline charge
* senior citizen subsidy rate
* missionary electricity charge
* environmental charge
* Incremental Currency Exchange Rate Adjustment (ICERA)
* Local Franchise Tax and Value Added Tax (VAT)
So, going back to system loss, per documentation, it’s really inherent in the delivery of electric services. It refers to the cost-recovery of power lost due to technical and non-technical system losses.
But what are the most common contributory factors for systems loss?
* theft or pilferages via illegal connections
* dilapidated/aging distribution lines among other facilities
Dilapidated lines and other facilities can easily be “cured” by means of upgrading via capital expenditures (CAPEX) of the distribution utilities.
But the tricky one is the pilferage issue.Republic Act 7832 or Anti-Pilferage Act of 1994 was passed to deter this criminal act with P50,000 to P100,00 as stiffer fines.
Yet, to date, power pilferage has become more “sophisticated”. The truth is, “professional pilferers” have profitable rings. And the “City of Smiles” ain’t exempted from this kind of “syndicate” offering illegal services to big businessmen who want to steal electricity at the expense of honest and paying consumers.
So, this is Atty. Lapore’s “headache” – fighting the “bonggaitans”.
But I trust the guy. Believe me. He’s capable of showing his “angst and fangs” just for this very purpose. However, let’s also pray for him.
GOVERNMENT SUPPORT
But is it proper for Ceneco to ask support from government in its newest WOSL?
Yes!
Just recently, Bacolod’s Mayor Albee Benitez is keen about the immediate lowering of Ceneco’s electricity rates. So, it’s high time for the city government to work hand in hand with the electric coop for this WOSL.
In what way?
Well, on the enforcement aspect. Take note that fighting a syndicate is no joke. But if the city government through the Bacolod City Police Office (BCPO) can effectively operate against the power pilferers in Bacolod, then, no doubt, Mayor Albee’s wish regarding cheaper power rate will come true.
WOSL is no ordinary mission. It needs the concerted effort of Ceneco, city government and power consumers per se.
Just take a look at Ceneco’s January 2023 Residential Power Rate (RPR) at P15.1057. The computation includes:
* Generation charge – P10.003
* Transmission charge – P0.5146
* System loss – P1.3323
* Distribution charge – P1.1866
* Government charges – P2.0689
Reducing system loss can also result to a notable reduction in the electricity billing.
With Ceneco’s current system loss charge at P1.3323 per kilowatt (kW), it’ll really matter to those who are consuming 100 kWs and up every month.
So, let’s support Ceneco. Let’s support Atty. Lapore. Let’s support WOSL./PN
