With power rates in Catanduanes to stay at the P19/kilowatt-hour level until August, the management of the First Catanduanes Electric Cooperative, Inc. (FICELCO) will push for the extension of the National Power Corporation’s 60-day Interim Power Supply Agreement (IPSA) as well as the grant of government subsidy for electricity produced under the second Emergency Power Supply Agreement (EPSA 2).
This was disclosed by General Manager Engr. Francis A. Gianan during a press conference at the cooperative headquarters in Marinawa, Bato last week.
He explained that the contract for 5-megawatt diesel gensets rented by the state-owned power firm will expire on Aug. 10, 2026 but it can be extended if the cooperative notifies NPC that there remains a need for the additional power source at least 20 days before the contract expiration.
“We will move for the IPSA’s extension even before the deadline because the power it produces enjoys government subsidy under the Universal Charge for Missionary Electrification (UCME) and the cheaper electricity benefits the cooperative and its member-consumer-owners (MCOs),” GM Gianan said.
Likewise, FICELCO sought the support and assistance of Governor Patrick Alain T. Azanza, TGP Partylist Congressman Jose “Bong” Teves Jr. and Congressman Eulogio R. Rodriguez, as well as other local officials in lobbying for the approval of its request for government subsidy to cover the electricity produced under EPSA 2 contract with Isla Dagyab Energy Corp.
“If subsidy is granted EPSA 2, the cost of power under the contract will go down from the True Cost Generation Rate (TCGR) of more than P30/kWhr to the P7.39/kWhr, resulting in lower effective power rates for all types of consumers,” it stressed.
According to reports, FICELCO and Isla Dagyab has a pending request for the inclusion of EPSA 2 in the UCME submissions to be filed by NPC with the Energy Regulatory Commission (ERC).
GM Gianan bared that the ERC under Chairman Atty. Francis Saturnino Juan does not want higher power rates imposed on consumers and has assured approval of the subsidy if the cooperative complies with NPC requirements.
He noted that a similar emergency power deal in Palawan province has been granted by ERC following the joint application by its electric cooperative and power supplier.
The cooperative’s disclosure of its plans was made as it explained the reasons behind the high power rates for the recent steep increase in electricity rates.
It said that the TCGR or the actual cost of electricity generated by the SUWECO EPSA for the March 25-April 25, 2026 billing period rose to P34.5144 per kWhr before slightly falling to P31.2744/kWhr in the succeeding month.
This was due to the expensive diesel fuel used by the gensets, which peaked at P133 per liter based on DOE data, representing about 200 percent increase since February 2026.
Meanwhile, the two of three hydroelectric power plants still operating, which could have contributed to a lower power rate, had low or no generation output for the last four months for lack of precipitation.
FICELCO said that the blended power rate that should have been applied for the April billing should have been P16.8748/kWhr but the lower P14.6888/kWhr was actually used so as not to burden consumers.
The same thing happened with the power rates for the May and June billings, which rose to P23.7932/kWhr and P23.7350/kWhr respectively but management decided to use lower rates of P16.0710 and P19.4437, respectively.
Of the P310.5 million billed by SUWECO to the cooperative for total electricity generated for the last three billing periods, FICELCO recovered only P241.6 million from its 10,000 consumers, leaving a balance of P68.85 million still to be recovered this July and August.
As a result, it revealed, the power rate for the next two billing periods will be in the P19/kWhr range but hopefully lower than the current 19.4437/kWhr.
“We are obliged to recover the deferred pass-on charges from consumers,” the co-op emphasized, to ensure its continued operation and pay for power already consumed.