National Electrification Administration (NEA) Administrator Antonio Mariano Almeda himself has issued a public notice asking Member-Consumer-Owners (MCOs) of Electric Cooperatives (ECs) for understanding regarding the recent increase in electricity prices.
The NEA chief said that the rise in electricity prices is primarily due to an increase in the generation component of the electricity rates.
“The generation component represents a pass-through cost from the power suppliers to the ECs. This means that the costs incurred by the power suppliers are directly transferred to the ECs and then to the consumers, without any markup from the ECs,” he stated.
The advisory cited recent reports indicating that the heightened heat index across the Philippines, a factor beyond the control of the ECs, has significantly driven up the generation costs.
This increase in generation costs is unavoidable on the part of the ECs and directly impacts the rates charged to the MCOs, Administrator Almeda pointed out.
“The increase in the generation component is beyond the control of the ECs. Generally, the ECs do not have the ability to influence or reduce these generation costs, as they are set by the power suppliers based on their operating conditions, among other factors,” he explained as he sought the MCOs’ continued support for their electric cooperatives.