Increase attributed to TRAIN Law

By Paulo Loreto Lim

The Central Negros Electric Cooperative, Inc. (Ceneco) revealed residential rates for February 2017 will increase by 41¢ per kilowatt hour (kWh).

The February 2017 residential rate is quoted at 11.2868/kWh, up from P10.8746/kWh in January.

Ceneco Corporate Planning Department head, Engr. Leomel Tambanillo, attributed the hikes to the Tax Reform for Acceleration and Inclusion (TRAIN) Law, pointing out increases to the price of coal and the National Grid Corporation of the Philippines (NGCP) being assessed a 12 percent value added tax.

He added, increases to generation charges also impacted rates.

Earlier, Ceneco General Manager Sulpicio Lagarde also pointed to the TRAIN Law, saying its implementation meant power rate increases were “imminent.”

He forecasted a 7¢/kWh increase due to excise taxes on coal, along with expected generation charge increases in April.

Tambanillo also noted a possible 22¢/kWh increase from a rate adjustment is currently pending Energy Regulatory Commission (ERC) approval.

In addition, an 8¢/kWh charge, originating from an ERC decision permitting Ceneco and the Korean Electric Power Corporation-Salcon Power Corporation to collect P232 million from consumer-members, which was temporarily put on hold last year by Ceneco President Roy Cordova, may also be implemented in the future./PLL, WDJ