Central Negros Electric Cooperative, Inc. (Ceneco) General Manager Sulpicio Lagarde recently affirmed, due to the Tax Reform for Acceleration and Inclusion (TRAIN) Law, increases to power rates are “imminent.”

In a report by TV Patrol-Negros, Lagarde said consumer power bills could rise by 7¢ per kilowatt-hour (kWh), exclusive of the value added tax (VAT).

The December 2017 rate was P10.0318/kWh.

With coal being assessed an excise tax by the new law, Lagarde explained, Ceneco’s power is supplied by coal-fired power plants from the Korean Electric Power Corporation-Salcon Power Corporation (Kepco-SPC).

The co-op general manager also noted an expected generation charge increase in April.

In addition, an 8¢/kWh charge, originating from an Energy Regulatory Commission (ERC) decision permitting Ceneco and Kepco-SPC to collect P232 million from consumer-members, which was temporarily put on hold last year by Ceneco President Roy Cordova, may also be implemented.

Lagarde added, the rate hike may also encourage more illegal electrical connections.

“Every time the price of electricity goes up, our collection fees go down,” he said./DGB, WDJ