MAMBAJAO, Camiguin–Consistent in the delivery of services in the areas of financial, technical and institutional operations for the last 15 years, the National Electrification Administration (NEA) has rated Camiguin Electric Cooperative (Camelco) triple A status, or excellent in over-all performance.
General Manager Adrian Ebcas said Camelco has attained an average weight of 95 percent in its operational performance based on the key performance standards set by NEA, making it to the list of top performing electric cooperatives in the country with triple A ratings.
NEA’S classification of Triple A rating for Camelco has an average score of 96.6 percent for the period 2014-2017.
Camelco is a non-stock and non-profit organization under the supervision and control of NEA. The Energy Regulatory Commission (ERC) approves the application of the rates, Power Supply Agreement (PSA) contracts and Capital Expenditure (CAPEX) projects.
“The NEA report card on Camelco getting a Triple A rating runs counter to the newspaper report that the cooperative has been operating in the red as alleged during the supposed public hearing conducted last March 18, 2019.
Ebcas explained that the reported accumulated losses of P426 million over the years were clearly reflected in the statements of changes in members’ equity and not classified as Camelco’s outstanding debt.
In the years 2014, 2015 and 2016 alone, Camelco’s audited financial statements categorically showed a total comprehensive income of P45M, P57M and P21M, respectively, which is the basis of NEA’s evaluation of the profitability parameter of the cooperatives.
During the hearing, however, Camelco reported the uncontrollable increase of system loss that greatly affected its financial operations due to the significant increase in accounts payable – power amounting to P47M in 2017, not P76M as published in the Business Week Mindanao dated March 25, 2019. These numbers were reflected in the cooperative’s audited financial statements.
• Upgrading of distribution lines to lower down systems loss by 4.5 percent
• Apply to ERC the inclusion of submarine cable loss to increase CAMELCO’s system loss cap from 11 percent to 14 percent
Ebcas also said that the issue of meter deposit has been complied and was already submitted to the ERC last February 28, 2017. To date, CAMELCO is awaiting of ERC’s action on the Meter Deposit Audit Report.
Camelco also confirmed the provisional approval of the ERC on the cooperative’s peak demand by its power supply contracts. It has, at present, a contracted capacity of 10.73 MW consisting of the current demand, indicative load and projected load growth.
“Ït was not accurate the report that CAMELCO only utilizes less than half or 4.7 MW of the total contracted energy”, Ebcas said.
Camelco’s power consumers are also paying the true cost of generation because it relies solely on the power supplied through submarine cables. Unlike other island cooperatives in Palawan, Romblon and Mindoro, Camelco does not receive any generation subsidy from the National Power Corporation-Small Power Unit Group (NPC-SPUG), he added.
As of February 2019, Camelco’s total effective rate, as approved by the ERC, is P15.83/kwh exclusive of distribution VAT of which P2.6/kwh only goes to the cooperative in the form of distribution, supply and metering charges.
With its unique island location, Camelco is appealing for congress and other inter-related agencies such as ERC, NPC-SPUG to take into account the cooperative’s profile and operations for a subsidized generation and universal charge rate of at least P7.50/kwh.
• CAMELCO appeals for a subsidized generation rate of at least P6.00/kwh by NPC-SPUG
• Connect the new submarine cable to the universal charges for reduction of P1.50/kwh from reinvestment fund for sustainable capex rate (RFSC)
Camelco is also looking at connecting the cost of the new submarine cable to the universal charge, Ebcas added.