MAJORITY—if not all—Ilocos Norte Electric Cooperative (INEC) member-consumers were surprised by the higher power bills they incurred this month. According to INEC officials the sudden rate increase was due to higher selling prices by the National Power Corporation and the National Transmission Corp. (Transco). In an interview with outgoing INEC board member Jeffrey Nalupta, the Batac mayor-elect said the rate increase was due to market forces. Last month, the power rate was pegged at P9 per kilowatt-hour. This month, the rate stood at P10.12/KWh. The market forces, Nalupta explained is dependent on the law of supply and demand and for this summer season the demand was higher but the supply was just too low. Relative to this, INEC is buying additional power supply from the Wholesale Electricity Spot Market (WESM) and Napocor, Nalupta added. Nalupta also cited the low output of the Northwind windfarm in Bangui, Ilocos Norte as another reason for the sudden surge of power rate in the province. However, he said that with the onset of the wet season, the cost of power is likely to decrease since the mini hydro plants in Pagudpud, Ilocos Norte would now produce more electricity. Nalupta also stated that the power rate increase began when franchise taxes were started to be collected by the Laoag City government as well as the provincial government. Immediately reacting to this, Laoag City officials strongly disagreed with Nalupta’s pronouncement since only at least more than P1 has been added in the consumers’ power bills as franchise tax. Dominic B. dela Cruz
|
|