By CHRIS V. PANGANIBAN
SAN FRANCISCO, Agusan del Sur —Households and businesses in Agusan del Sur are paying more for electricity this January after the Agusan del Sur Electric Cooperative Inc. (ASELCO) implemented an average rate increase of ₱0.78 per kilowatt-hour (kWh) across all consumer classes.
For a household consuming 100 kWh a month, the adjustment translates to about P75 more on the January bill, excluding other charges.
The new rates vary for residential, commercial, and industrial use. For residential, the new rate is P12.1456 per kWh, up from P11.3938 in the December 2025 bill. For commercial, the January 2026 rate is P11.6519 per kWh, up from P10.7836 in last month’s bill. For industrial, the new rate is P9.3730 per kWh, up from P8.6057 last month.
ASELCO attributed the increase mainly to its heavier reliance on the Wholesale Electricity Spot Market (WESM) late last year, when several regular power suppliers were unavailable due to scheduled preventive maintenance, forced outages, and engine failures between November 26 and December 25, 2025.
WESM is where electricity is bought in real time when contracted supply falls short.
“WESM prices are demand-driven and fluctuate daily,” ASELCO said. “When multiple plants are offline, prices increase and these costs are passed on to consumers.”
Unlike long-term supply contracts with stable pricing, WESM purchases expose utilities—and ultimately consumers—to price spikes during periods of tight supply.
“We were compelled to source supplemental power from the spot market because contracted supply was unavailable during that period,” ASELCO said in a statement, noting that WESM prices are “significantly higher than fixed contract rates.”
The cooperative said power consumed during the period was billed to ASELCO in early January 2026 and became the basis for the rates charged to consumers at the end of the month.
The rate hike also includes new nationally mandated charges tied to renewable energy compliance. ASELCO said it began collecting the Green Energy Auction Allowance (GEA-All) at ₱0.0371 per kWh, which supports solar, wind, and hydro projects selected through government bidding.
“These charges are required by the Energy Regulatory Commission and are pass-through costs that distribution utilities are mandated to collect,” ASELCO said.
Another added charge is the Renewable Energy Certificate (REC) fee of ₱0.0167 per kWh, required to certify that part of the power supply comes from renewable sources under the Renewable Portfolio Standards.
ASELCO stressed that it does not set generation prices. “The cooperative does not earn from these increases. All generation and regulatory charges are remitted directly to power suppliers and mandated entities,” it said.
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