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Dumaguete City, PhilippinesTuesday, July 17, 2012
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NORECO 2 opposes KEPCO
proposal for rate increase


The Negros Oriental Electric Cooperative 2 said it is trying to find ways with other power distributors in Negros Island, to reject the proposal of the Korean Electric Power Corporation to increase its rates.

NORECO 2 acting general manager Dionefred Macahig said the coal-fired KEPCO in Naga, Cebu has a pending request with the Energy Regulatory Commission for a P.45 centavos per kilowatt hour increase.

KEPCO is claiming that the proposed hike is due to a change of supplier of coal after a contractor in Indonesia no longer renewed its contract, Macahig said.

The five electric cooperatives in Negros Island, all clients of KEPCO, are opposing the proposed increase as it will be passed on to consumers, he added.

These are NORECO I and NORECO 2, the Negros Occidental Electric Cooperative, Central Negros Electric Cooperative Inc. and VMC Rural Electric Service Cooperative Inc.

Macahig said that if ERC approves KEPCO’s request, NORECO 2 will reduce its contract with KEPCO by at least 50 percent, and will source its power requirement from the Wholesale Electricity Spot Market instead.

NORECO 2 has a 16 megawatt contract with KEPCO and a 25MW power supply agreement with Green Core Geothermal Inc., he said.

The shortfall of 8MW will be supplied by WESM and only during zero peak load to avoid an increase in electric rates for NORECO 2 consumers, he said.

Of the three power utilities supplying electricity to NORECO 2, KEPCO charges P5.62 per kilowatt hour, GCGI at P5.11/kWh and WESEM with a varying rate between P4 to P8 per kWh, depending on the on peak or off peak schedules.*JFP

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