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POWER COOPS POST LOWER SYSTEM LOSS IN 1ST SEMESTER 2019 – NEA

Electric cooperatives (ECs) across the country posted lower national average system loss in the first six months of 2019, resulting in a 13 percent growth in energy sales, latest data from the National Electrification Administration (NEA) show.

The NEA Information Technology and Communication Services Department (ITCSD) reported that system losses of ECs have improved by 10 percent from 11.57 percent in the first semester of 2018 to 10.38 percent in the same period this year. 

“Lower system losses contribute to a reduction in power rates.”

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

Data showed that 96 ECs posted a within-the-cap system loss set by ERC. Of this number, 39 ECs had registered single-digit system loss. Meanwhile, 15 ECs had a double-digit system loss of 13 percent to 20 percent. This is lower than last year’s 31 ECs.

“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. (AURELCO) at 2.03 percent; Batanes Electric Cooperative, Inc. (BATANELCO) at 2.79 percent; Leyte II Electric Cooperative, Inc. (Leyeco II) at 2.91 percent; South Cotabato II Electric Cooperative, Inc. (SOCOTECO II) at 2.91 percent; and Misamis Oriental I Rural Electric Service Cooperative, Inc. (MORESCO I) at 2.99 percent.

“I hope they will strive to sustain the gains they have made.”

The Dinagat Island Electric Cooperative, Inc. (DIELCO) posted a 3.74-percent system loss; Cebu III Electric Cooperative, Inc. (CEBECO III) at 3.88 percent; Bohol I Electric Cooperative, Inc. (BOHECO I) at 6.20 percent; Iloilo III Electric Cooperative, Inc. (ILECO III) at 6.27 percent; and Surigao del Sur I Electric Cooperative, Inc. (SURSECO I) 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 gigawatthours (GWh) 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. 

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