Train effect: Mactan Electric Co. to hike power rates, too
WITH some power distributors in Cebu like the Visayan Electric Co. and Cebu Electric Cooperative 2 (Cebeco 2) announcing their plans to increase electricity rates next month, the Mactan Electric Co. (Meco) will also increase their rates.
Meco is serving the whole Mactan Island including the municipality of Cordova.
Diane Amodia, Meco’s information officer, said they will only implement the increase on the power generation but not on the services provided by Meco.
She said that Meco has two power suppliers namely the Kepco and the Cebu Energy Development Corporation (CEDC) which use diesel and coal for their power plants.
The increase in the rates of the electric distributors is expected especially since the power generators are expected to increase their power supply rates because of the increase in excise tax imposed on coal and fuel like gasoline and diesel in the first package of the government’s new tax reform law or Tax Reform Acceleration and Inclusion Law (Train).
For coal, the P10 excise tax for every metric ton will be increased to P50 in the first year of implementation, P100 in the second year and P150 in the third year.
“Whatever increase coming from our suppliers will be passed on to the consumers as allowed by law,” said Amodia.
Amodia said they might implement the increase on the next billing.
She could not however give the exact amount of how much per kilowatt hour is the increase.
They also serve the Olango Island through a sub-contractor power generator.
Doris Cambal, 45, of Barangay Bangkal, Lapu-Lapu City, when asked about the increase of electricity rates by Meco, said she would just have to save energy as much as possible to lessen her electric consumption.
“Magdaginot na lang gyud ta ani aron dili ta madak-an sa bayronon sa kuryente. Hinaut lang dako og ikatabang ang tax exemption (We have no choice but to conserve energy to consume less electricity and have a lesser electric bill. I just hope that the withholding income tax exemption will help,” said Cambal.
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