KAELCO explains reasons of sudden power rate increase in Kalinga

Tabuk City, Kalinga – The Kalinga Electric Cooperative (KAELCO), through a press conference held on Wednesday, May 25, 2022, explained the factors affecting the sudden power rate increase experienced by its member-consumer-owners.

The Corporate Plan Chief of the cooperative, Leonardo C. Egcatan, first cited the current power suppliers of KAELCO. Masinloc Power Partners Co. Ltd. (MPPCL), he said, has the highest contribution, supplying 58% to the cooperative while Wholesale Electricity Spot Market (WESM) supplies 28%.

MPPCL, a subsidiary of San Miguel Corporation, is coal-dominated while WESM, a venue for trading electricity as a commodity, is primarily fueled by oil.

According to Egcatan, the power hike imposed by KAELCO on its end-users happens when the demand of the major suppliers increases.

On May 20, the cooperative informed the public of the expected increase in their generation charges in April and May 2022 Power Bills and succeeding months because of the high prevailing coal prices brought about by the conflict between Ukraine and Russia.

Develop renewable source of energy to counter power hike

When asked about the possible solution to counter the power hike, KAELCO Board of Directors President Isaac Baliang stressed the impact of developing a renewable source of energy, such as hydropower.

He explained that with renewable energy, the cooperative will not be affected by an increase in coal or oil prices, and member-consumers, in return, will enjoy low electric bills.

Bulanao Mini-Hydro Powerplant owned by DPJ Engineers and Consultants only shares 11% of KAELCO’s demand.

LISTEN TO STATION 1 RADIO: CLICK ME

OTHER NEWS 

Marijuana and Butbut-Betwagan conflict, problems to be prioritized in 2022

Follow Guru Press Cordillera  on Facebook for more News and Information