Akelco mulls 2-tiered power rate mechanism

Boracay, Aklan – Aklan Electric Cooperative (Akelco) is studying the possibility of applying for a two-tiered rate with the Energy Regulatory Commission (ERC) to improve the reliability of power supply in this island.

Akelco executive officer Enrico Bucoy said under the scheme, commercial and residential consumers would pay varying rates.

"Establishments that need better service such as five-star resorts which consume much more power have to be willing to pay more than residential consumers," Bucoy said.

Akelco, he said, is looking at charging commercial establishments between P1-1.50 per kilowatthour (kwh) more than what residential consumers have to pay, in order to ensure better service.

Coming up with this new kind of rate pricing scheme is necessary since it is expecting that the power demand in the country’s premiere tourist destination will double by 2005, Bucoy said.

"Power demand can grow by as large as four to six megawatts (MW) within the next six months to one year," Bucoy said. Akelco distributes power to Aklan and the entire Boracay island.

At present, the island’s demand is at around six MW, with several resort owners using power generators to ensure a steady supply of energy.

But two power facilities being put up in Nabas and New Washington towns here by Mirant Global Philippines Corp. (MGPC) are expected to address a looming energy shortage in the region.

MGPC is a partnership between Mirant Philippines and Global Business Holdings, a Metrobank subsidiary.

Bucoy said around eight large resorts, including the 110-room Regency Hotel, are being put up here.

"We will be needing all the power we can get," Bucoy pointed out, adding the two new power facilities will be vital in addressing the foreseeable increase in the island’s energy demand.

Bucoy said Akelco is also currently upgrading power lines within Boracay with a new submarine cable expected to be in place by March 2005 in order to put in place better service.