LAOAG: Ilocos Norte Electric Cooperative (INEC) has borrowed PHP100 million from the Land Bank of the Philippines (Landbank) to help cushion operational cost while allowing consumers to pay on installment basis.
In a briefing on Tuesday, INEC acting general manager Cipriano Martinez said Landbank’s anti-bill shock short-term loan program extends working capital to distribution utilities (DUs) and electric cooperatives (ECs) while allowing their electricity customers to pay bills in installments during periods of higher power consumption and rates.
He said power consumption in the province increased by over 60 megawatts or 20 percent from the average daily consumption because of the El Niño-induced heat.
Under the program, DUs and ECs can borrow up to 80 percent of the incremental increase in electricity consumption of consumers, but the amount should not exceed repayment capacity and three times the billing of power suppliers.
The loan is payable for 270 days and can be renewed for another 90 days.
As a
result, Martinez said INEC was able to reduce power rates by PHP1 this month, now at PHP9.5266 per kilowatt hour.
‘We are thankful to the President (Ferdinand R. Marcos Jr.) and to our governor (Matthew Manotoc) for reminding us to tap the anti-bill shock program for the benefit of our consumers,’ he said.
Source: Philippines News Agency
