Gatchalian seeks lower electricity rates for consumers in Palawan

Senator Win Gatchalian is seeking lower electricity rates for consumers in Palawan following rate hikes implemented by the Palawan Electric Cooperatives (PALECO).

In a letter addressed to Energy Secretary Raphael Lotilla, Gatchalian asked the energy department to reconsider its policy of withdrawing subsidy, in the form of the universal charge for missionary electrification (UC-ME), from PALECO saying the policy has greatly affected electricity consumers in Palawan who have to shoulder higher generation charge.

PALECO had earlier entered into two Emergency Power Supply Agreements (EPSA) following an order issued by the Energy Regulatory Commission (ERC) to terminate its power supply agreement (PSA) with Delta P, Inc. (DPI) for 20 megawatts because it wasn't compliant with the competitive selection process (CSP) requirement of the DOE.

Another EPSA with DMCI Power Corp. (DPC) was prompted by the expiration of PALECO's PSA with Power Generation, Inc. for 7.2 MW, the delayed entry of its new PSA with S.I. Power Corp., and to meet increasing demand.

As the two EPSAs are not entitled to the UC-ME subsidy, the blended generation charge of consumers has increased from P6.9520 in October 2023 to P9.7858 in February 2024, accounting for an increase of 45.94%.

"While I understand the policy objective behind the non-entitlement of EPSAs to the UC-ME is to hold distribution utilities accountable for their failure to properly forecast and manage the demand of their franchise areas, I would like to personally suggest that the policy be reconsidered for the protection of consumers," said Gatchalian, who serves as the vice-chair of the Senate Committee on Energy.

According to Gatchalian, the non-entitlement to the UC-ME should only apply to EPSAs that are not a result of force majeure or fortuitous events that are beyond the control of the distribution utilities (DUs).

"Given that the force majeure or fortuitous event is beyond the control of the distribution utilities, then consumers should not be penalized for it," Gatchalian told Lotilla.

Also, the difference between the subsidized approved generation rate and the true cost generation rate should be paid by the DU from its own funds and should not be passed on to consumers," he emphasized.

"If the EPSA is a result of an action or inaction of the DU, then the DU itself and not the consumers should shoulder the cost," he said.

Pababain ang singil ng kuryente sa Palawan -Gatchalian

Nais ni Senador Win Gatchalian ng mas mababang singil sa kuryente sa Palawan kasunod ng mga rate hike na ipinatupad ng Palawan Electric Cooperatives o PALECO.

Sa isang liham para kay Energy Secretary Raphael Lotilla, hiniling ni Gatchalian sa Department of Energy (DOE) na pag-isipan nang maigi ang polisiya nitong tanggalin ang subsidiya, sa pamamagitan ng universal charge para sa missionary electrification (UC-ME), mula sa PALECO, dahil malubhang naapektuhan ang mga konsyumer na pumapasan ng mataas na generation charge.

Nauna nang pumasok ang PALECO sa dalawang Emergency Power Supply Agreement (EPSA) kasunod ng utos ng Energy Regulatory Commission (ERC) na tapusin na ang power supply agreement (PSA) nitong 20 megawatts sa Delta P, Inc. (DPI) dahil hindi raw ito sumunod sa competitive selection process (CSP) na requirement ng DOE.

Nagbunsod din ng isa pang EPSA sa DMCI Power Corp. (DPC) ang pag-expire ng PSA ng PALECO sa Power Generation, Inc. para sa 7.2 MW na suplay ng kuryente, ang naantalang pagpasok ng bago nitong PSA sa S.I. Power Corp., at ang pagtugon sa tumataas na demand.

Dahil ang dalawang EPSA ay walang karapatan sa UC-ME subsidy, ang blended generation charge ng mga konsyumer ay tumaas sa P9.7858 noong Pebrero 2024 mula P6.9520 noong Oktubre 2023 o 45.94% na pagtaas.

"Bagama't naiintindihan ko na ang layunin ng polisiya sa likod ng non-entitlement ng mga EPSA sa UC-ME ay para panagutin ang mga distribution utility sa kanilang kabiguang magsagawa ng maayos na projection at pamahalaan ang demand sa kanilang mga nasasakupan, iminumungkahi ko na isaalang-alang ito nang maigi para sa kapakanan ng mga consumers," ani Gatchalian, na siyang vice-chair ng Senate Committee on Energy.

Ayon kay Gatchalian, ang non-entitlement sa UC-ME ay angkop lamang sa mga EPSA na hindi resulta ng force majeure na lagpas sa kontrol ng distribution utilities (DUs).

"Dahil ang force majeure ay lagpas sa kontrol ng distribution utilities, hindi dapat pinaparusahan ang mga konsyumer dahil dito," sabi ni Gatchalian kay Lotilla.

Sinabi rin niya na ang pagkakaiba sa pagitan ng subsidized approved generation rate at ang tunay na cost generation rate ay dapat bayaran ng DU mula sa sarili nitong pondo at hindi dapat ipasa sa mga konsyumer.

"Kung ang EPSA ay resulta ng isang aksyon o hindi pagkilos ng DU, ang DU mismo at hindi ang mga mamimili ang dapat na sumalo sa gastos," pagtatapos ng senador.