Consumers pay more for power in summer

When summer begins, power demand goes up  and so does the generation cost of  electricity.

A spokeswoman of  the Visayan Electric Co. (Veco) said consumers can expect a 30 centavo to 35 centavo increase for every kilowatt hour of electricity consumed starting this month.

In yesterday’s Cebu Media Forum at the Rajah Park Hotel,  Theresa Sederiosa, Veco corporate communications manager, said further increases are expected in May when demand is at its peak and the succeeding summer months.

The generation cost reflects the mix of sources of electricity supplied to Veco.  When a larger than usual demand occurs, some  power producers use  diesel-fired plants to meet the need. These units are more expensive to operate.

Sederiosa said Veco consumers use up to 460-470 MW on weekdays and less on weekends at  300 MW. During the peak season, power requirements may reach up to 500 MW, she said.

“According to the law of supply and demand when the demand increases and the supply remains the same, one can expect a price increase,” she said.

An average household consumes 200 kilowatts per month, she explained.

With the current generation cost of P5.50 per kWh, the average household would  pay P1,100 monthly.

This does not include the distribution cost and tax reflected in the consumer’s billing statement, Sederiosa said.

Once the generation cost increases by P0.30 to P0.35, the average household will have to pay P1,160 to P1,170 based on the same monthly power consumption.

Sederiosa said the highest recorded generation charge  of  VECO was P6.20 last year.

In the consumer’s billing statement, there are three components: generation cost, distribution cost and tax revenues.

Expensive

Sederiosa said generation cost covers the payments made to private suppliers that  produce electricity for Veco to distribute in its franchise area.

Majority of Veco’s power supply comes from geothermal, hydro and coal plants.

At the onset of a demand increase, “peaking plants” are compelled to operate. These include  diesel plants, which are expensive to run, Sederiosa said.

“Of course, the generation charge will increase because we need to augment supply of power from more expensive plants,” she said.

Cebu Energy Development Corp. (CEDC) supplies 121 MW, a power plant in Ermita supplies 62 MW, while the rest of Veco’s power needs are  sourced from Leyte and Negros Oriental.

But she assured that demand will drop as well as the generation cost once the rainy season starts.

In the meantime, she said consumers should   learn to use less electricity and use energy-efficient appliances.

“Number one: unplug. Any appliance, as long as it is plugged in, even if it is switched off, still consumes electricity,” she said.

She recommended using energy-efficient appliances based on its star label.

“Inside the star is the energy efficiency rating of the appliance. The higher the number, the more efficient,” said Sederiosa.

Consumers should consider replacing old appliances with new ones, like air conditioners with inverters, which are more power-efficient.

Power supply for Cebu is almost equal to demand. The thin reserves make Cebu vulnerable to brownouts  when plants are down for preventive maintenance or trip off.