Senators are seeking an investigation into the alleged poor service and high power cost exacted on consumers by electric cooperatives in Mindanao and other parts of the country.
They also agreed that it is high time to review the Electric Power Industry Reform Act (EPIRA) of 2001, including the power supply contracts to provide safeguards and protect consumers.
This came after Senate President Juan Miguel Zubiri delivered a privilege speech Monday, raising the alarm on the steep rise of electricity rates in Mindanao and other parts of the country.
He also said it is now ripe to review the amendment of the EPIRA.
Zubiri, who hails from Northern Mindanao, relayed to the chamber how he has been receiving complaints from his fellow Mindanaoans regarding rising electricity rates in the region.
“The electricity rate in Cagayan de Oro has increased tremendously from P10.62 per kilowatt hour (kWh) in January of this year, to P14.18 in July for commercial consumers,” he cited. “That is an increase of 33.52 percent.”
“In Bukidnon, a residential consumer paid P15.15 per kilowatt hour in June, and in July, he paid P16.56 per kilowatt hour. A 9.31 percent increase in just a one-month period,’’ he said.
Zubiri also presented July 2022 residential power rates from electric cooperatives in Mindanao and parts of Visayas, with the lowest being LEYECO 2 at P13.03 per kWh, and the highest being SOLECO at P19.01 per kWh.
During the plenary session, Senator Grace Poe, chairwoman of the Senate Public Services Committee, sought to summon the Energy Regulatory Commission (ERC) to a hearing to determine how to address the problem of high cost of power hounding consumers.
The ERC, the regulator of the energy sector, approves rates charged to consumers as well as the power supply agreements that distribution companies enter into with generation companies.
Generation costs approved, however, do not include fluctuations in fuel prices and in the exchange rates that result in higher fuel costs.
“Almost every increase is passed on to our consumers. This has been the practice and our people bear the brunt. It’s almost no risk to the providers,” Poe explained.
“There’s no excuse for cooperatives to have bad service, faulty infrastructure because they always recoup their costs. In some areas, they can’t supply power for more than 24 hours. What have they been doing with the money that they have been receiving? They are not spending it on improving their services,” Poe lamented.
"I don’t think anybody should be locked in to a punishing agreement especially when the brunt is being borne by the consumers," she added.
Poe hopes that solutions on how to deal with the high power costs could be discussed in the hearing with the ERC, including the possibility of removing the value-added tax on generation charges and its ramifications.
She agreed with Zubiri that it is time to review the EPIRA
Interpellating Zubiri, Minority Leader Aquilino “Koko” Pimentel III questioned the increasing electric rates in Mindanao and moved for the review of the role of all electric cooperatives.
“Correct me if I’m wrong, electric cooperatives are supposed to be non-profit, board of directors are representatives of the consumers, they are called the trustees who look for the welfare of consumers so, apparently the entire concept is not working.” Pimentel pointed out.
Senator Rafael ‘’Raffy’’ Tulfo called for a Senate investigation into the persistent and recurring power outages and rotational blackouts in the different parts of the country, as well as the rising cost of electricity amid these power interruptions.
Tulfo, chairman of the Senate Committee on Energy, filed Senate Resolution (SR) 107 seeking to find an immediate solution to an impending energy crisis and adopt necessary legislative measures that will provide long-term energy security, sufficiency and stability to all Filipinos.