Rural power coops bring system losses down to reduce rates
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 19:20:00 05/19/2008
Filed Under: Consumer Issues, Electricity Production & Distribution
MANILA, Philippines -- Electric cooperatives (ECs) nationwide continue to control their system loss rates to enable them to pass on savings to their customers in the form of lower rates.
According to data from the National Electrification Administration, although most of the 119 ECs nationwide were still problematic in terms of system loss rates, some had also been posting single-digit system loss levels for years now.
Misamis Oriental I Electric Cooperative Inc. (Moresco I), for example, holds the record for keeping its system losses at the single-digit level for the longest time, or since 1981.
Its current system loss rate is at 6.5 percent, the second lowest among all ECs in the country.
Topping the charts with the lowest system loss at present is Cebu III Electric Cooperative Inc. (Cebeco III) at 6.42 percent, followed by Moresco I at 6.5 percent, Davao Oriental Electric Cooperative Inc. (Doreco) at 6.81 percent, Bohol I Electric Cooperative Inc. (Boheco I) at 6.82 percent, and Siargao Island Electric Cooperative Inc. (Siarelco) at 6.87 percent.
Aside from those five ECs, 10 other rural power distributors have reached single-digit system loss rates even prior to the presidential directive to bring them down.
These include the Dinagat Island Electric Cooperative Inc. (Dielco) with 7.26 percent; Camotes Electric Cooperative Inc. (Celco) with 8.21 percent; Davao del Sur Electric Cooperative Inc. (Dasureco) with 8.46 percent; Tarlac I Electric Cooperative Inc. (Tarelco I) with 9.25 percent;
Batanes Electric Cooperative Inc. (Batanelco) with 9.3 percent; Cebeco I with 9.46 percent; Tablas Island Electric Cooperative Inc. (Tielco) with 9.71 percent; Province of Siquijor Electric Cooperative Inc. (Prosielco) with 9.81 percent; and Cebeco II and Lanao del Norte Electric Cooperative Inc. (Laneco) with 9.83 percent.
All these 15 ECs have system loss rates that are below the 14.5-percent cap, which means they are operating efficiently enough that they do not have to absorb any losses related to poor electricity distribution.
"Reasons for higher electricity rates vary in every electric distribution utility. As for the ECs, the system loss and non-power cost or operating expenses are two controllable costs affecting distribution rates,” NEA administrator Edita Bueno said in a statement.
“As part of its supervisory function, NEA has made available a financial credit facility for system loss reduction, also extending technical, institutional and management assistance for this purpose,'' she aid.
"We will see to it that these losses are translated into savings for and by the ECs so that the consumers can benefit from it through their upgraded distribution lines, quality service and even lower electricity rates. We have to acknowledge and reward good efforts so that the member-consumers may appreciate what their ECs are doing for them,'' she added.
Bueno earlier said that the national average system loss for ECs should go down to 13 percent this year, 11 percent in 2009 and 9 percent in 2010.
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