Electric Cooperative

 

 

 

 

On November 3, 1936, the National Power Corporation (NPC) was created to generate and transmit electricity nationwide.  However, upon the creation of RA 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), some major reforms were made which include the division of the industry into four sectors namely: generation, transmission, distribution, and supply.

 

Generation Sector

 This sector is competitive and open to electric generating companies who passed a compliance certificate to ERC and health and safety clearances.

The amount charged by the electric generating companies heavily depends on the materials used in producing electricity (ie, coal, geothermal, hydropower etc.). On the other hand, the sales of power generated by these companies are VAT zero-rated to lower electricity rates for the consumers. Additionally, the prices set by these companies are not regulated by ERC however, said government agency may require generation companies to submit a copy of their financial statements to determine if there is a “market power abuse or anti-competitive behavior”.

 

Transmission Sector

The main objective of the transmission sector is to deliver electricity from the generating companies to electric distribution utilities.

TransCo was mandated to operate and manage the power transmission system of the country since 2003. It was until EPIRA mandated its privatization through “an outright sale or management concession agreement”. The National Grid Corporation of the Philippines (NGCP) won the 25-year concession in 2007. And in 2009, it started to manage and operate the nationwide transmission system and other related facilities.

 

 Distribution Sector

The distribution utilities deliver electricity from the transmission grid system to the consumers. A distribution entity could be a private distribution utility, a cooperative, local government unit or other entities that function as an electric distributor.

BATELEC I is among the 121 electric cooperatives in the country that is mandated, through the Rural Electrification Program, to provide reliable, affordable, and adequate supply of electricity to their respective coverage areas. Currently, BATELEC I has achieved 100% total electrification in its covered areas serving a total of 178,153 consumers (as of September 2018).

 

Supply Sector

All suppliers of electricity are required to secure a license from the ERC to demonstrate their technical and financial capability and their credit-worthiness. On the flip side, prices charged by suppliers are not regulated by the ERC.

 

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