SAN FERNANDO, La Union, Philippines – The Ilocos Norte Electric Cooperative (Inec) is giving its consumers a Christmas treat by lowering its power rates by 60 centavos per kilowatt-hour (kwh).
The adjusted rates will be reflected in the December billing, making the power rates at P8.80 per kwh from the previous P9.40 per kwh.
Engineer Renato Balintec, Inec general manager, said the new power rates are a result of the lower cost of power that Inec bought from power suppliers.
“This is also in line with the principle of supply and demand such that when there is an oversupply and under-consumption, the result is lower power cost,” Balintec said.
“For example, because of the traditional holiday vacations, we expect lower power consumption when government offices and other businesses close down for the Christmas and New Year breaks,” he added.
Balintac said the high cost of electricity in the previous months was due to the shutdown of the Malampaya Gas which supplies power to major areas in Luzon, including Metro Manila.
“When Malampaya Gas shut down, our rates increased by 40 centavos because big power plants stepped into the shoes of Malampaya to produce electricity that it should have generated. These plants were using expensive crude oil,” he said.
Balintec said Malampaya has resumed its operations, resulting in reduced power costs.
The cooperative expects power costs to remain lower until early next year.
But Balintec said consumers should expect power rates to go up again in summer when generation and transmission costs will be higher because of high power demand.