Power rate hike seen for northeastern Mindanao

BUTUAN CITY - Nearly all electricity cooperatives in northeastern Mindanao are ready to charge higher rates anytime starting this month or next, officials said. They pointed out that additional power supplies that will be bought are expected to be more expensive since it will be produced from diesel plants. The rate hike may reach as much as one peso or more per kilowatt hour for consumers in CARAGA, two top officials of the Agusan del Norte Electric Cooperative (ANECO) said on Friday. CARAGA is made up of five provinces in northeastern Mindanao including the five provinces of Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte, and Surigao del Sur. ANECO is “studying a one peso increase or [a few] centavos more [so that] we can buy additional source of electricity at the Aboitiz-owned power barge now stationed in Nasipit, Agusan del Norte," ANECO General Manager Horacio Santos told GMANews.TV. The rate hike is necessary to solve worsening brown outs in areas they serve, ANECO Chairman of the Board Dioscoro Buco said. Although the cooperative has “already reached [an agreement] with the Aboitiz-owned power barge," it may pay higher rates because the barge uses diesel fuel, Santos said. However, the power agreement still needs the approval of the National Electrification Administration (NEA). ANECO serves all 86 urban and rural barangays of Butuan City, the seat or the regional center of Caraga Region where different regional offices of national government agencies are located. It also provides power to all eleven municipalities of Agusan del Norte, which has more than 100,000 consumers. Besides serving more than 80,000 households, ANECO also serves at least 37 wood processing firms, three malls, big power users like big industrial shops, hotels, hospitals both private and public, 10 ice plants, and others. ANECO has the biggest number of power consumers among six other power cooperatives in Caraga region. All power coop firms in the region are currently purchasing power from Iligan City-based hydropower plants. - GMANews.TV