DAGUPAN CITY — The Dagupan Electric Corp.’s (Decorp) rates will be higher by 3 centavos per kilowatt hour (kwh) this month due to the effect of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Lawyer Randy Castilan, legal officer and spokesman of the company, said Tuesday this was due to the excise tax on coal that was used by coal power plants and which power generators were passing on to distribution utilities such as Decorp.
He estimated that more than PHP50 would be added to the usual monthly electric bills of households consuming 100 per kwh.
It was learned that Decorp buys 40 percent of its power from coal-fired power plants and the rest from hydropower plants.
The Central Pangasinan Electric Cooperative (Cenpelco), which is dependent on power coming from coal-fired power plants, is also slated to increase its electricity rates this February for the same reason.
Both Decorp and Cenpelco said another reason for the rates hike is the 6-centavo per kwh increase in the transmission charge imposed by the National Grid Corp. of the Philippines (NGCP).
Both distribution utilities said consumers would not feel the rate increase if they save on electricity, especially when they use appliances that are eco-friendly.
Meanwhile, Castilan said Decorp is now building a solar power plant in Barangay Erfe, Santa Barbara, Pangasinan.
He said the Energy Regulatory Commission (ERC) is processing the required papers for this project.
The solar power plant will generate 10 megawatts of power during the first phase, and up to 29 megawatts in the second phase.
Castilan said this would supply parts of the power requirements of Decorp. PNA-northbounasia.com