The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) has expressed its opposition to the petition filed by the National Power Corporation (NPC) before the Energy Regulatory Commission (ERC) seeking approval of its proposed new subsidized approved generation rate (SAGR) for Small Power Utilities Group (SPUG) areas.
Board Resolution No. 03-10-24, approved by PHILRECA, 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 supports the Association of Isolated Electric Cooperatives, Inc. (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 cited the anticipated escalation in generation charges for both residential and commercial consumers within SPUG areas.
“PHILRECA supports the Association of Isolated Electric Cooperatives, Inc. (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.
The Association explained that if 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 (MCOs) 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 added.
PHILRECA called on the national government, the Department of Energy, the ERC, and the National Electrification Administration to “look into long term solutions for SPUG ECs, such as fast-tracking the connection of the off-grid areas to the main transmission system along with other mechanisms” provided in Republic Act. No. 9136, or the “Electric Power Industry Reform Act of 2001.”
AIEC President and Romblon Electric Cooperative, Inc. General Manager Rene Fajilagutan explained that if the ERC approved the petition of the NPC, the generation charge would increase to P8.5982/kWh for residential consumers and P10.0488/kWh for commercial/industrial consumers in Luzon.
Fajilagutan, in a virtual press conference on Wednesday (April 3), said several barangays in the municipalities of Romblon and San Fernando have passed resolutions expressing their opposition to ERC Case No. 2023-133 RC or “the Petition for the Approval of the Proposed New Subsidized Approved Generation Rates (SAGR) for NPC-SPUG Areas with Prayer for Provisional Authority or Interim Relief.”
Tablas Island Electric Cooperative, Inc. General Manager Dennis Alag said the municipalities of Odiongan, Calatrava, and San Agustin in Tablas Island, Romblon have also passed their respective resolutions, expressing strong objections to the petition of the NPC.
