The National Electrification Administration (NEA) said the ERC approved recently the granting of rate cuts for 24 electric cooperatives (ECs) as a result of savings due to the condonation of loans.
Section 60 of Republic Act 9136 or the Electric Power Industry Reform Act provides for the condonation of all outstanding financial obligations of electric cooperatives to NEA and other government agencies which were incurred for purposes of financing the rural electrification program upon the effectivity of the law. The law says that the loans shall be assumed by the Power Sector Assets and Liabilities Management Corp. (PSALM).
The ECs which have been granted provisional authority to reduce rates arising from debt condonation include: Ilocos Norte Electric Cooperative (INEC); Ilocos Sur Electric Coop. (Iseco); La Union Electric Coop. (Luelco); Pangasinan I Electric Coop. (Panelco I); Batangas II Electric Coop. (BATELEC II); Oriental Mindoro Electric Coop. (Ormeco); Quezon I Electric Coop. (Quezelco I); Tablas Island Electric Coop. (Tielco); Camarines Norte Electric Coop. (Canoreco); Camarines Sur I Electric Coop. (Casureco I); CASURECO II and IV; Antique Electric Coop. (Anteco); Capiz Electric Coop. (Capelco); Iloilo I Electric Coop. (Ilelco I); ILECO II; Bantayan Electric Coop. (Banelco); Bohol I Electric Coop. (Boheco I); Cebu III Electric Coop. (Cebeco III); Negros Oriental II Electric Coop. (Noreco II); Surigao del Sur I Electric Coop. (Surseco I); Agusan del Norte Electric Coop. (Aneco); Agusan del Sur Electric Coop. (Aselco) and Siargao Island Electric Coop. (Siarelco).
Perez said the electricity consumers in these areas are expected to enjoy a reduction in their power rates ranging from 1.2 centavos to 76.4 centavos per kilowatt hour (kwh) depending on the amount of rural electrification loans condoned as approved by the ERC. The rate reduction, the ERC said, will be reflected as a separate item in the consumer’s electricity bill.
"According to NEA, the ERC will start next month the public hearing for the final determination and implementation of the rate reduction in these franchise areas.
The condonation of loans is one of the programs that have been outlined in the Executive Order 119 promulgating the Restructuring Program of Electric Cooperatives issued August last year. – Donnabelle Gatdula