PHILRECA bucks NPC petition for higher subsidies

By Manila Standard Business – April 5, 2024, 8:30 pm

The Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) expressed its opposition to the petition filed by the National Power Corp. (NPC) before the Energy Regulatory Commission (ERC) for new subsidized approved generation rate (SAGR) for Small Power Utilities Group (SPUG) areas.

PHILRECA said its Board Resolution No. 03-10-24 aligns with the stance of the Association of Isolated Electric Cooperatives (AIEC) in resisting the petition filed by the NPC for the endorsement of its proposed new SAGR.

PHILRECA cited the anticipated escalation in generation charges for both residential and commercial consumers within SPUG areas.

“PHILRECA supports the AIEC in vehemently opposing the petition of the NPC to increase the SAGR and requests the ERC to intensively review and assess the proposed increased SAGR,” PHILRECA said.

It said that once approved, the petition of the NPC would affect member-consumer-owners (MCOs) and businesses, especially local and small-scale businesses, in off-grid or SPUG areas.

“The proposed new SAGR would significantly burden residential member-consumer-owners with a rate hike of P2.9578, P3.4515 and P3.3298 for Luzon, Visayas, and Mindanao, respectively,” PHILRECA said.

“Such increase in SAGR not only goes against the national policy of providing electricity at the least cost manner but will also bring about tremendous effect and harm to residential MCOs, decreasing disposable income and aggravating the already challenging circumstances faced by communities in remote areas,” it said.