The Negros Oriental Electric Cooperative 2 will implement its latest rate adjustment, that took effect in February, and will be reflected in this month’s billing statement.
A residential consumer will be charged P10.46 per kilowatt-hour from the previous rate of P9.67 per kilowatt hour.
The hike follows the generation rate increase by one of the power suppliers of NORECO 2, Green Core Geothermal Inc., a subsidiary of the Energy Development Corporation.
General manager Dionefred Macahig, of NORECO 2, said in a radio interview that GCGI had increased its rates as stipulated in the contract signed by both parties on the escalation and de-escalation of pricing.
He said the increase comes a little over a year since NORECO 2 and GCGI signed a power supply agreement, that provides for an increase based on the consumer price index related to the fuel cost price and the steam cost of GCGI.
The agreement was signed December 2010, and this is the first time the GCGI has imposed an increase in power generation rates, with the approval of the Energy Regulatory Commission, Macahig said.
Manny Candelaria, deputy manager for GCGI Electricity and Steam Sales Department, said GCGI increased by about five percent while another power supplier of NORECO 2, the coal-fired Korean Electric Power Company in Cebu, had increased by 10 percent for the same billing period.
GCGI only imposes an adjustment in generation rates once a year using the consumer price index, Candelaria added.*JFP
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