ECs reduce system loss from 11.57% to 10.38% in first semester–NEA

By Lenie Lectura -October 31, 2019
from Business Mirror

Electric cooperatives (ECs) were able to bring down their system loss to 10.38 percent in the first semester of the year from 11.57 percent in the same period a year ago.

The Energy Regulatory Commission (ERC) has set the system loss cap at 12 percent for ECs, which can be passed on to the consumers’ monthly electricity bills.

The National Electrification Administration  Information Technology and Communication Services Department (ITCSD) reported on Wednesday that the system losses of the ECs improved by 10 percent during the period. The improvement, NEA said, resulted in a 13-percent growth in energy sales.

The data showed that 96 ECs posted a within-the-cap system loss set by ERC, of which, 39 ECs registered single-digit system loss. Meanwhile, 15 ECs registered a system loss of 13 percent to 20 percent.

“This is a clear indicator that electric cooperatives are fully committed and ready to compete with other power distribution utilities in the country. Lower system losses contribute to a reduction in power rates,” NEA Administrator Edgardo Masongsong said.

“I hope they will strive to sustain the gains they have made, and do their utmost to further improve their services to their member-consumer-owners and other stakeholders,” the NEA chief added.

The 10 ECs that registered the lowest system loss were Aurora Electric Cooperative Inc. at 2.03 percent; Batanes Electric Cooperative Inc. at 2.79 percent; Leyte II Electric Cooperative Inc. at 2.91 percent; South Cotabato II Electric Cooperative Inc. at 2.91 percent; and Misamis Oriental I Rural Electric Service Cooperative Inc. at 2.99 percent.

The Dinagat Island Electric Cooperative Inc. posted a 3.74-percent system loss; Cebu III Electric Cooperative Inc. at 3.88 percent; Bohol I Electric Cooperative Inc. at 6.20 percent; Iloilo III Electric Cooperative Inc. at 6.27 percent; and Surigao del Sur I Electric Cooperative Inc. at 6.38 percent.

In its report, NEA-ITCSD also said 14 regions registered reduction in their system losses and contributed to the decline in the overall level. This resulted to increased energy sales by 13 percent and revenues by 14 percent.

Total energy sales of the ECs also improved, reaching 11,397 gigawatt hours in the first semester, up from 10,060 GWh in the same period last year. National gross revenue of the ECs grew from P98.741 billion in 2018 to P112.121 billion in 2019.

The higher sales were also driven by the increased consumption of residential sector at 5,951 GWh, followed by commercial sector at 2,515 GWh, industrial sector at 1,634 GWh, public building at 588 GWh and other consumers at 709 GWh.