RDC urges ERC to lower power cost in Region 2

Tuguegarao City (3 August) — Members of the Regional Development Council (RDC) Region 2 has unanimously endorsed the resolution requesting the Energy Regulatory Commission (ERC) to conduct a power study to lower the power rate in Cagayan Valley.

The decision was made after scrutinizing the result of a “study on power rates and its effect on households and commercial establishments” in the seven electric companies in the region.

The study showed that despite the existence of 2 power producing dams, Magat Dam in Isabela and Casecnan Transbasin Tunnel in Nueva Vizcaya, that produces big volume of electric power through water resources of the region, the electric companies posted an average power rate of P6.4 per kilowatt-hour which is the highest among other regions nationwide, even higher than the national average of P4.56 per kilowatt-hour.

The study also showed that despite the presence of the two dams that contribute electricity to Luzon grid, there are 96 barangays representing 4.05 percent remained un-energized in the region.

With these, to lower the Generation Charge, RDC requested ERC to study the possibility of lowering the generation charge for region 2 in consideration of its being the host region of Magat Dam and Casecnan Transbasin Tunnel.

On System Loss, RDC requested ERC to further lower existing systems loss caps of 14 percent to 9 percent. The EPIRA clearly provides that the systems loss cap can be reduced to a rate lower than 9 percent.

On Government Revenues, RDC also requested ERC to strictly enforce the specific provision of EPIRA (Sec. 4) for Local Government Units (LGUs) to impose franchise on distribution charge only, and not on all other charges as currently enforced.

The LGUs must also exempt households with a monthly power consumption of less than 100 KWh from paying the government revenue charge.

It is further specified to the endorsement that the National Grid Corporation must establish backbone of transmission to cover the entire stretch of a province to reduce connection charges.

To help resolve the issue, the RDC further encourage LGUs to develop cheaper alternative renewable energy sources such as wind, solar and bio-diesel.

The study also recommended RDC to request to the electric companies to periodically conduct massive educational campaign for energy use and efficiency, right of way clearing operation, and intensify monitoring activities of its anti-pilferage program to reduce system loss. (Oliver Baccay/PIA 2)