A group of electricity consumers criticized two power electric cooperatives in Ilocos Region for allegedly charging local consumers of what it describes as sky-high power rates.
In a statement, Power for People Coalition (P4P) convenor Gerry Arances said the power rates being charged by the Ilocos Norte Electric Cooperative (INEC) and the Ilocos Sur Electric Cooperative, Inc. (ISECO) are higher compared to the rates of the consumers in Metro Manila under the Manila Electric Company (Meralco).
In Ilocos Nortr for instance, Arances said consumers have been paying a total unbundled rate of ₱16.767 per kilowatt hour while Ilocos Sur consumers pay a residential charge of ₱16.1192 per kilowatt hour.
Arances said the Manila Electric Company (Meralco) only charges its consumers ₱9.7545 per kilowatt hour.
“It is unconscionable for any Filipino to pay more than 16 pesos per kilowatthour 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,” said Arances.
Arances pointed to coal as the primary culprit for the high power rates burdening consumers in the region, given the power supply agreements (PSAs) of the two electric cooperatives.
He said INEC’s active PSA is with Masinloc Power Partners, which operates the Masinloc coal plant while 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,” said Arances.
He then warned that the situation in Ilocos can also happen all over the country, as San Miguel Corporation seeks to recover over ₱15 billion in losses from the spike in coal and gas prices.
“Ilocos is a preview of what can happen to consumers if we let companies who forced us to use electricity from coal and gas escape the responsibility of the decision by passing on the costs,” said Arances.
“These companies decided to use fossil fuels despite the abundance of renewable energy sources in the country, even if fossil fuels harm the environment, are subject to fluctuations in the world market, and can harm people living near their plants,” he added.
The group then asked President Bongbong Marcos, Jr. to address the issues on fossil fuels and commit to the transition to renewable energy at the soonest possible time.
He explained that the President’s action on the push for renewable energy is consistent with his campaign promise wherein he uses the Bangui Windmills, which was adopted as a symbol of his campaign.