INEC cites fuel costs, weak peso behind April power rate hike

Electricity rates in Ilocos Norte rose this April, with the Ilocos Norte Electric Cooperative Inc. attributing the increase to higher generation and transmission charges driven by fuel costs and currency depreciation.

In a statement released by INEC, residential rates climbed from ₱11.1916 per kWh in March to ₱11.7246 per kWh in April, reflecting an increase of ₱0.5330 per kWh.

INEC General Manager Cipriano “Perry” E. Martinez III said the adjustment was largely due to rising fuel prices and the weakening peso, which pushed up generation costs, including value-added tax. The peso reportedly depreciated from ₱58.2802 to ₱59.4069 against the dollar, while fuel costs also rose, contributing significantly to the increase.

The cooperative also cited higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP), noting that transmission rates went up from ₱1.4998 per kWh to ₱1.5476 per kWh, adding further pressure to overall electricity costs.

Despite the increase, INEC said the situation could have been worse. Martinez noted that a projected ₱1.00 per kWh hike did not materialize, partly due to a 10-megawatt Emergency Power Supply Agreement secured earlier to cushion the impact of global energy disruptions, particularly those linked to tensions in the Middle East.

INEC assured consumers that power supply in Ilocos Norte remains stable and dismissed claims of a possible “energy lockdown.” The cooperative said electricity distribution will continue, subject only to scheduled maintenance and isolated technical interruptions.

The utility added that it sources most of its power from coal-fired plants through long-term agreements with major energy providers, while recent supply arrangements were put in place to stabilize electricity availability amid global uncertainties.

INEC also announced plans to roll out a program aimed at assisting farmers and other sectors reliant on gasoline and diesel for temporary or permanent electrification. Guidelines for the initiative are currently being finalized.

The cooperative thanked consumers for their patience and acknowledged the broader impact of the global energy situation, expressing confidence that measures in place will help mitigate further disruptions.