Solon wants increase held off

CEBU, Philippines - Cebu Fourth District Rep. Benhur Salimbangon last Wednesday urged the House Committee on Energy to intervene on behalf of the Bantayan Electric Company Cooperative (Banelco).

In his privilege speech, Salimbangon urged Congress to call the attention of the Department of Energy, National Power Corp. and ERC not to implement a P2.62 power rate increase that was approved and became effective in January but only implemented this month.

He said the consumers of Banelco are shouldering the power rate increase of more than P3 per kilowatt hour to recover the losses of Napocor from 2006 to 2009.

“Dili ni mahimo, this will kill Banelco and the industries in Bantayan as well as the resort operators that we are supporting to boost tourism in the island,” Salimbangon said.

Salimbangon said that after his privilege speech, he was informed by DOE officials that the increase was not implemented, but when he called Banelco Salimbangon said he was told the power rate increase is implemented starting this month.

Salimbangon said the increase is too big since consumers are already charged with the so-called universal charge for missionary electrification for NPC-Small Power Utilities Group-classified areas like Bantayan Island.

ERC has approved an applied increase of P2.62 per kilowatt-hour effective January 2012 which reportedly was not implemented by Banelco.

Due to Banelco’s non-implementation of the said power rate increase, they were also not able to pay and remit to Bantayan Island Power Corporation the amount corresponding to the rate increase and in turn Bipcor was also not able to pay and remit the same to Napocor.

Napocor cut off its subsidy to Bipcor from P11 million to P6 million and withheld its subsidy to Bipcor.

As a result, Bipcor was not able to pay P15 million to Petron Corp. for fuel delivery for three months prompting the latter to serve notice that they would stop supplying fuel unless the amount is paid.

Governor Gwendolyn Garcia Garcia intervened by extending a loan amounting to P15.2 million to Banelco to ensure continuous power.

The said amount shall be remitted by Banelco to Bipcor for payment to Petron Corp. who delivers and supplies fuel for power generation.

As agreed, Banelco started paying its monthly amortization last July in the amount of P699,638.16 inclusive of 5.2 percent interest per annum for the period of two years.

With this, Banelco added around P0.50 per kilowatt-hour to the electricity billing of consumers within two years also making it around P10.20 per kilowatt hour from the present P9.70/kwh.

With the implementation of ERC approved power rate of P2.62 per kilowatt hour in addition to the P.43 per kilowatt hour intended for the repayment of loan to the Capitol will make consumers to pay the increase of more then P3.   - THE FREEMAN