System losses of power coops improve to 10.38% in 2018

MANILA, Philippines — Power distribution in the provinces has improved in the countryside as power coops reported lower system losses in the first half, according to data from the National Electrification Administration (NEA).

The NEA Information Technology and Communication Services Department (ITCSD) reported that system losses of electric cooperatives (ECs) improved from 11.57 percent last year to 10.38 percent this year.

The decline in the national average system loss of ECs across the country resulted in a 13 percent growth in energy sales.

System loss is defined as the difference between electric energy delivered to the distribution system and the energy delivered to the end-users and other entities connected to the system.

Based on data from NEA, 96 ECs posted a within-the-cap system loss set by the Energy Regulatory Commission (ERC), which is 12 percent for ECs. Of the 96, 39 ECs registered a single-digit system loss.

Meanwhile, 15 ECs had a double-digit system loss of 13 percent to 20 percent. This is lower than last year’s 31 ECs.

“This is a clear indicator that electric cooperatives are fully committed and ready to compete with other power distribution utilities in the country. Lower system losses contribute to a reduction in power rates,” NEA administrator Edgardo Masongsong said.

“I hope they will strive to sustain the gains they have made, and do their utmost to further improve their services to their member-consumer-owners and other stakeholders,” he said.

The 10 ECs that registered the lowest system loss were Aurora Electric Cooperative Inc. at 2.03 percent, Batanes Electric Cooperative 2.79 percent, Leyte II Electric Cooperative 2.91 percent, South Cotabato II Electric Cooperative 2.91 percent and Misamis Oriental I Rural Electric Service Cooperative Inc. (MORESCO I) 2.99 percent.

The Dinagat Island Electric Cooperative Inc. posted a 3.74 percent system loss, Cebu III Electric Cooperative 3.88 percent, Bohol I Electric Cooperative 6.2 percent, Iloilo III Electric Cooperative 6.27 percent and Surigao del Sur I Electric Cooperative Inc. (SURSECO I) 6.38 percent.

In the report, 14 regions registered reduction in their system losses and contributed to the decline in the overall level. This resulted in a 13 percent increase in energy sales and a 14 percent jump in revenues.

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