A “vehement” opposition has been raised against the recent petition filed by the National Power Corporation to the Energy Regulatory Commission, proposing an increase in the Subsidized Approved Generation Rate affecting off-grid areas such as the province of Palawan, including Puerto Princesa City.
Spearheading this initiative is the Palawan Electric Cooperative (PALECO), which has pointed out that the proposed changes will have a widespread and profound impact, affecting every household and local business in the city and province.
Among those that are supporting PALECO’s cause is Board Member Ryan Maminta, chair of the Committee on Energy at the Sangguniang Panlalawigan, who emphasized that the petition, filed under Energy Regulatory Commission (ERC) Case No. 2023-133, poses a significant threat to the already considerable burden shouldered by the residents of Palawan.
Maminta opposes the National Power Corporation’s (NPC) proposal to increase the Subsidized Approved Generation Rate (SAGR), which will raise power rates in Puerto Princesa City and Palawan province. He said that the move could lead to an increase of no less than ₱2.2855/kWh for residential, commercial, and industrial consumers alike.
“Halimbawa, ang isang residential consumer na may 200 kWh ay magkakaroon ng halos ₱500 na karagdagang bayarin at ang isang commercial establishment na mayroong 10,000 kWh na konsumo sa isang buwan ay halos nasa ₱22,000 na dagdag bayarin ng mga negosyo,” he said.
“Nagkausap kami ng Palawan Electric Cooperative (PALECO) tungkol dito, kasi nga tinututulan din nila kasi nga tataas yong power rates natin—patong patong na, magiging compounded na yong taas,” he added.
On April 1, Palawan Electric Cooperative (PALECO) General Manager Rez Contrivida wrote to Maminta, urging his committee to pass a resolution opposing the NPC petition.
Contrivida noted that as a government organization, the NPC “should protect the well-being of consumers” in off-grid communities, who have few options for inexpensive electric services.
He told Maminta that in the latest developments that are bound to affect household budgets and business operating costs alike, the NPC has put forth a proposal for an upward adjustment of electricity tariffs.
Details released recently stated that residential consumers, who currently pay an ERC-approved rate of ₱7.3900/kWh, could see their rates climb by ₱1.2082/kWh, marking a 16% increase to ₱8.5982/kWh. This proposed change is expected to raise concerns among homeowners, who may have to reassess their monthly expenses.
The commercial and industrial sector faces an even steeper increment, with the proposed rates soaring by 36%, resulting in an additional ₱2.6588/kWh over the current rate of ₱10.0488/kWh, culminating in a new proposed rate of ₱12.7076 P/kWh.
Contrivida stated that “discounting the implementation of existing Emergency Power Supply Agreements (EPSAs) and considering the ERC-approved charges, such as Distribution, Supply and Metering Charges,” residents would see their bills rise to ₱13.9869/kWh, businesses to ₱12.8720/kWh, industrial facilities to ₱12.8454/kWh, public buildings to ₱12.9691/kWh, and streetlights to ₱12.6681/kWh.
The currently approved electricity rates are ₱11.7015/kWh for residential, ₱10.5865/kWh for commercial, ₱10.5599/kWh for industrial, ₱10.6836/kWh for public buildings, and ₱10.3827/kWh for streetlights.
Maminta explained that such a hike in electricity rates is anticipated to have a ripple effect, potentially increasing the costs of goods and services as businesses adjust to the heightened overhead costs.
He added that it will exacerbate inflation in the city and province, further burdening residents.
“Mabigat ito at masakit sa bulsa, lalo itong magpapalubha ng inflation sa ating lalawigan at magpapahirap sa taumbayan. It will be an inflation driver dahil ang pagtaas ng power rates ay will be eventually passed on to consumers. Goods and services will be experiencing inflation. It will have a ripple effect sa ating ekonomiya,” he said.
He understands that the NPC’s action is related to the rising prices of petroleum products due to the ongoing Ukraine-Russia war, but he says that the national government should also help those in Small Power Utilities Group (SPUG) areas like Palawan, because residents are already struggling.
Maminta is expected to deliver a privilege speech on April 16 before his colleagues at the Sangguniang Panlalawigan to rally unanimous support for a critical resolution he intends to file, which seeks to firmly oppose the rate increase suggested by the NPC.
The address is not only to articulate the potential repercussions of the NPC’s proposal on the residents of Palawan but also to accentuate the collective responsibility of the Sangguniang Panlalawigan to protect the economic interests and well-being of their constituents.
“Process ng ERC ito, mayroong basis, at mayroong grounds for adjustment ang NPC bilang government-owned and controlled corporation. Pero dapat, ibalik nila yong subsidy doon sa EPSA natin, in whatever form, kahit tapos na siya, nagawa na natin, kumbaga dapat bigyan nila tayo ng reprieve doon kasi di naman natin kontrolado ang bagay na yon,” Maminta explained.
He emphasized that his primary focus is securing the subsidy for EPSA 1, which involves 26 megawatts. Achieving this relief would offer Palaweños the much-needed respite from the escalating costs they are currently facing.
The board member is actively advocating also for the national government’s support of the NPC by utilizing the Malampaya funds, which are specifically allocated for energy purposes.
“Ginamit na nila sa kung saan-saan, why not use it again to its original purpose, which is energy development?” he said.
