KAELCO announces generation charge’s hike affecting July, August billings

Tabuk City, Kalinga—The Kalinga Electric Cooperative (KAELCO) on Thursday, July 8, 2021, informed the public that an increase in generation charges is expected, affecting the power bill of consumers by July and August this year.

In an announcement, KAELCO reasoned out that the increase in generation charge is due to the price hike in the Wholesale Electricity Spot Market (WESM), the cooperative’s supplier.

The announcement states that 'the tight power supply in the Luzon grid caused by unplanned plant outage of major power plants propelled the steep rise in the spot prices of energy traded to the Wholesale Electricity Spot Market (WESM)'.

Generation charge, as explained, is the ratio of the total power cost and the total volume of energy (kWh) which KAELCO procured from several power suppliers and is being passed on to its member-consumer-owners (MCOs) through their electric bills.

To further elaborate the cause of the hike, KAELCO relates that they bought 55.65% of its demand from Masinloc Power Partners Co., Ltd (MPPCL), 44.35% from WESM, and 0.43% from Bulanao Mini-Hydro Power Plant (BMHPP) last month.

On June 30, 2021, MPPCL relayed to the cooperative that a boiler tube leak in its 335MW coal power plant transpired resulting in it to shut down its generation to give way to the conduct of necessary repair.

Repair works were then finished on July 07, 2021, and its impact on the power bill is expected to take effect in the August 2021 billing.

“Under the KAELCO-MPPCL Power Supply Agreement, forced outage such as this nature compels the buyer (KAELCO) to secure replacement power from other suppliers, especially WESM,” the cooperative disclosed.

For this month, KAELCO said the procurement from MPPCL shall subside to 44% as a result of the forced outage.

Meanwhile, an eight percent increase in the purchase from BMHPP will be expected as the irrigation water supply has been restored.

Additionally, purchases from WESM will slightly increase to 48%.

For the following reasons, the public is reminded to conserve and consume energy wisely.

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