CABANATUAN CITY – The power rate increasethat beset consumers in most areas of the country, including Metro Manila, is getting a reverse in this city, dubbed as the education and economic center of Nueva Ecija.
The power distribution firm Cabanatuan Electric Corp. (Celcor) asked consumers not to worry amidst the controversial increase in power rates being sought by Meralco and other distribution utilities because it will not do the same.
“Huwag po kayong mabahala sapagkat ang singil ng Celcor ay hindi tataas at bagkus ay bumaba pa,” reads a notice sent to household consumers. But the Celcor would not immediately divulge the decrease per kilowatt hour, apparently because the Energy Regulatory Commission (ERC) is in the process of determining the exact
amount.
Rossana Vergara, president of First Cabanatuan Venture Corp. (FCVC), said that the strict monitoring by Celcor
of the movement of spot market price and institutionalizing a systemic approach in power trading made the decrease, amid increase in almost all places, of power rates in this city.
These reportedly include the creation of a memorandum of agreement with the Therma Luzon, Inc. (TLI), direct membership to the Wholesale Electricity Spot Market (WESM) and the creation of the FCVC power plant, an alternative power generation embedded to Celcor.
With the MOA, Celcor was able to procure electric power from TLI on specifi c agreed price even of the latter experience expected or unexpected operational disturbance while direct membership to WESM enabled the firm to buy or sell electricity.
FCVC, being considered as Celcor’s own plant, on the other hand, has been readily available source whenever the rates on WESM surge or in the absence of any other source of electricity due to massive blackout brought by the scarcity of supply or damage to distribution lines.
A source who did not want to be identified for lack of authority said Celcor has created a team which analyses the spot market activity on hourly basis. Its the team that advises the Celcor to operate FCVC when prices at WESM tends to soar, according to the source.
The FCVC saved Celcor consumers from the skyrocketing power price from September to December 2013 when the entire Luzon experienced extraordinary increase in WESM rates due to massive destruction on its (WESM’s) power plants in Visayas and lines that distribute electricity from Visayas to Luzon, annual maintenance operation of the Malampaya Gas Complex and the unexpected stoppage of several power plants, the notice notice added.
“Sa pagkakataong ito, imbis na kumuha ng kuryente ang Celcor sa WESM, ito ay nakapagsuplay pa,” it added.
“Sa ganitong sitwasyon, imbis na ang Celcor ang magbayad sa WESM, ang Celcor ang siyang nakatanggap ng bayad mula sa WESM na siyang nagdulot ng malaking pagbaba ng halaga ng kuryente sa Cabanatuan.”
Vergara said that the decrease in power prices here is another result of the “pass on provision,” under the law.
“Since FCVC generated income from selling of electricity to augment the supply for consumers in Metro Manila and other areas, Celcor has to pass it on to consumers,” Vergara said in an interview.
