City dads eye resolution to ease burden amid rising power rates

By Jason B. Neola

THE Sangguniang Panlungsod on Tuesday, July 28, held a joint public hearing to identify possible measures that could help ease the burden of soaring electricity costs being paid by consumers served by the Camarines Sur II Electric Cooperative (CASURECO II).

The hearing was jointly conducted by the committees on Public Utilities, Consumer Protection, Environment and Energy, and Ways and Means.

City Councilor Nathan Sergio said the four committees are considering drafting a resolution urging the national government to defer or remove charges currently being passed on to consumers through their monthly electricity bills.

The proposed resolution will be transmitted to the Office of the President and to the House of Representatives through the office of Congressman Nelson Legacion in support of legislative measures aimed at lowering electricity costs.

The move comes after President Ferdinand Marcos Jr., in his fifth State of the Nation Address on July 27, called for the removal of system loss charges and the corresponding value-added tax (VAT) from consumers' electricity bills. The proposal also seeks amendments to the Electric Power Industry Reform Act (EPIRA).

During the hearing, Engr. Edgardo R. Piamonte, acting general manager and project supervisor of CASURECO II, explained that the increase in electricity rates is largely driven by the higher cost of power generation, which has been affected by the continuing conflict in the Middle East.

Piamonte clarified that the charges being collected by CASURECO II are those allowed by the Energy Regulatory Commission (ERC), stressing that the cooperative merely passes on the cost of electricity purchased from power suppliers.

The hearing also tackled complaints regarding the implementation of power disconnections for consumers who fail to settle their monthly bills.

Former City Councilor Joe Grageda appealed to CASURECO II to relax its "one bill, one month" policy, under which consumers may face penalties or service disconnection for failing to pay a single monthly billing within the prescribed period.

City Councilor Allan Reiz Macaraig expressed support for the President's proposal to amend EPIRA and said consumers themselves could also help reduce electricity losses by practicing energy conservation, including switching off streetlights when they are no longer needed.

Macaraig likewise proposed exploring the use of embedded or roof-integrated solar power as an alternative energy source for Naga City. He said he is studying the possibility of sourcing electricity from a solar facility in neighboring Calabanga through CASURECO II.

If realized, he said, the project could provide consumers with lower electricity rates compared to power purchased from the National Grid Corporation of the Philippines (NGCP), which currently contributes to electricity costs of about P13 per kilowatt-hour. He added that he is studying the legal and regulatory requirements, including the necessary ordinances and agreements with concerned local government units.

City Councilor Jessie Albeus also urged the national government to remove the VAT imposed on electricity bills, saying the tax only adds to the financial burden of consumers already paying high generation charges.

He said government assistance programs would have greater impact if excessive taxes and charges on electricity were reduced, allowing more families to benefit from lower utility expenses.

Albeus also suggested that the cost of missionary electrification—government-mandated power service for remote and off-grid communities—should be shouldered by the national government instead of being passed on to consumers through their electricity bills.

System loss refers to electricity lost during transmission and distribution due to technical losses or illegal activities such as electricity pilferage. Existing laws, including EPIRA and Republic Act No. 7832, allow distribution utilities to recover a portion of these losses from consumers through system loss charges reflected in monthly electricity bills.

The city council said the proposed resolution aims to support national efforts to reduce electricity costs by removing or deferring charges that can be absorbed by the government, thereby providing relief to power consumers.