Train drives up rates of 3 NegOcc power coops

ALL three electric cooperatives in Negros Occidental have higher power rates this month with the impact of the Tax Reform Acceleration and Inclusion (Train) law as one of the major contributors.

The Central Negros Electric Cooperative (Ceneco), catering to the largest number of consumers in the province, has an effective rate of P11.2868 per kilowatt hour (kWh) for February.

The figure is about P0.41 per kWh higher than the previous month’s rate of P10.8746 per kWh.

The distribution utility covers the cities of Bacolod, Bago, Talisay and Silay, and the towns of Murcia and Salvador Benedicto.

Engineer Leomel Tambanillo, manager of Corporate Planning Department of Ceneco, Friday, February 23, told SunStar Bacolod the upward adjustment is primarily attributed to increase in generation cost.

Tambanillo said transmission charge is also contributing to the increase in power rate as the National Grid Corporation of the Philippines (NGCP) is also affected by the tax reform law.

“Of the overall increase in our power rate this month, about P0.05 per kWh is accounted for the impact of the tax reform law,” he added.

Like other distribution utilities in the province, this is the first billing month that Ceneco carries an additional increase due to Train.

Tambanillo said the impact of tax reform is already embedded in the rates which the cooperative can no longer avoid.

He said that the behavior of electricity rates varies from time to time, depending on level of consumption thus, “we can still expect reduction on overall rate amid the tax reform law implementation.”

Ceneco president Roy Cordova said they are holding a transparency meeting on February 28 mainly to further enlighten consumer-members on the impact of the Train law to their electricity bills.

The Negros Occidental Electric Cooperative (Noceco), which caters to consumers in the south, from Pulupandan to Hinoba-an, posted an increase of P0.06 per kWh in its February billing.

From P9.7840 per kWh in January, the distribution utility’s prevailing rate increased to P9.8482 per kWh.

Jonas Discaya, general manager of Noceco, said the main factor of the higher electricity rate this month is the imposition of the value-added tax (VAT) on transmission due to the Train law.

From P0.0233 per kWh, it moved to P0.1068 per kWh, Discaya said, adding that there is also a VAT increase in generation.

From P0.5633 per kWh, the figure moved to P0.6051 per kWh this month.

However, the generation, system loss, and transmission charges registered reductions of P0.0327, P0.0142 and P0.0194 per kWh, respectively.

“The decrease on these rates cushioned the impact of the overall rate increase due to the tax reform,” he said, adding that Noceco’s distribution, supply, and metering charges remain unchanged.

The Northern Negros Electric Cooperative (Noneco) registered the highest increase this month.

Noneco’s rate for February is P11.6801 per kWh, with an increase of almost P0.66 from the previous rate of P11.0208 per kWh.

The cooperative also noted an increase in generation charge of about P0.55 per kWh.

Paulino Almedelia, manager of Noneco’s Corporate Planning Department, said the upward adjustment is partly because of the taxes aspect since NGCP is now subject to 12 percent VAT.

“On the generation side, the increase is due to implementation based on the Energy Regulatory Commission order approving Power Sector Assets and Liabilities Management Corporation recovery and an increase in Greencore’s rate for 2018 due to new consumer price index,” he added.

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