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NE coop explains rise in power rates

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NEECO 1 building. Photo by Armand Galang

SAN ISIDRO, Nueva Ecija – The Nueva Ecija 1 Electric Cooperative (NEECO 1) has
been consulting its legal team and industrial experts to make sure that the rates
of electricity imposed by its supplier are justified, the management said.
This, as some member-consumers decried the increase in retail price which is
pegged at P14/kWh.

“We are consulting with our legal team, our advisers, yung mga experts sa sector
natin na kung makikitaan natin ng loophole ang kontratang ito tayo po mismo ang
magdedemanda,” said Xian Gregor, NEECO 1 corporate communications and
social marketing head.

NEECO 1 entered in a supply agreement with GN Power, a coal-based power
producer, in January 2021 which had the lowest offer at that time, Gregor said.
The spike, however, started mid of 2021 when world was plagued with problems
on coal until it reached P14/kWh when the war between Russia and Ukraine
broke out.

The cooperative serves 108,752 households and businesses in Gapan City and
several municipalities in the southern part of Nueva Ecija.
Gregor said they cannot just stop procuring electricity from GN Power as they
were bound by a 20-year contract.

“We cannot compromise ang kalagayan ng ating mga consumers dahil pag ang
nangyari po ay tayo naman ang idinemanda ni GN gagasta for legal implications,
hablahan na sana po ay naipagpapagawa na natin ng proyekto,” Gregor explained.
He maintained the cooperative does not make money out of the power price hike.
The generation charge, he said, is a pass-on charge which is 60-70% of the
amount a consumer pays, which means it goes to the producer, in this case, the
GN Power.

“Ibig sabihin po, kung magbabayad kayo kay NEECO 1, yung 60-70% ng ibinabayad
niyo ay mapupunta sa generation charge,” he said. “Gusto po namin i-debunk
‘yung maling agam-agam at mga at assumptions ng ating mga consumers na
mintris mataas ang rate, malaki ang kita ni NEECO 1.”
Only around P2 which covered metering and distribution charge go to the power
coop, he said.

A woman from this municipality lamented that the budget for her husband’s
maintenance medicines has been badly affected by the increase in their electric
bill.

From their regular P1,300 bill it jumped to over P2,300 this month. “Dati
nanghihingi sa mga anak ng pandagdag pero nakakahiya din na lagi na lang
manghihingi dahil may pamilya rin sila,” the woman, a senior citizen, said.
Some social media users even shared an advisory from NEECO 2, a separate
power coop serving other municipalities, which showed that its distribution price
was only around P8/kWh.

Gregor said they have called the attention of GN Power, like other power
distributors who also buy from it, when the company imposed an increase.
“Pero mahusay din naman po ang team din naman ni GN Power. Constant ang
communication laging maagap sa pagbibigay ng mga bagay-bagay, explaine nila
regarding prices how, it spikes,” he added.

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