Ilocos norte: Electricity rates in Ilocos Norte province have increased this month by more than PHP1 per kilowatt-hour (kWh), according to the Ilocos Norte Electric Cooperative (INEC). The total unbundle residential rate for July will be at PHP11.61/kWh, compared to the PHP9.99 in June, reflecting a difference of PHP1.62.

According to Philippines News Agency, in a press conference at the INEC main branch in Dingras town on Wednesday, the firm's acting general manager, Cipriano Martinez III, apologized to member-consumer-owners (MCOs) for the increase in rates despite the lower consumption this rainy season. He attributed the increase to the total accumulated deferred payment worth PHP105 million that could have been passed on to consumers since January this year.

"From here on, we will apply the actual rate, so as to maintain INEC's good financial status," Martinez said. He added that the sole distribution utility has achieved its Triple A rating anew with a maintaining working capital of PHP285 million.

It may be recalled that during the hot months of April onwards, INEC decided to cut rates despite a jump in power usage to help consumers. Martinez said this led to negotiations with the power supplier, which resulted in the deferment of a portion of INEC's payment so as not to pass on the amount to MCOs. The prolonged deferment of payment, however, affected the financial status of INEC, prompting it to bring back its actual rate to consumers.

"I hope you understand. What we will do now is to charge the actual rate and slowly add the deferred payment to your bill," Martinez said, citing the need to balance the interest of INEC and its MCOs. He added that the Triple A rating of INEC is vital for its ongoing upgrading distribution system to solve power outages in the province.