Rotary Club of Tacloban Tackles High Power Rates and Impact on Eastern Visayas Economy

by Miriam G Desacada

TACLOBAN CITY — The Rotary Club of Tacloban held its regular lunch meeting on Thursday to discuss the rising electricity bills and their impact on households, businesses, and the economy of Eastern Visayas.

The meeting, presided over by Club President Neil Sia and Club Secretary Peter Justin Chua, featured Rotarian Ronnie “Bong” Dayun, Director of Leyte II Electric Cooperative Inc. (LEYECO II), as resource person. It was facilitated by Rotarian Edgardo Espirancilla, former regional director of the Department of Science and Technology (DOST) in Region 8.

In his presentation, Dayun gave a straightforward explanation on the factors behind the recent spike in power rates that has burdened consumers in Tacloban, Leyte, and the wider Eastern Visayas region.

He identified four main causes:

1. Generation charges – the largest portion of the electric bill, which represents the actual cost of producing electricity. This is the amount utilities pay to power suppliers before adding transmission, distribution, and taxes. It fluctuates monthly depending on fuel prices, plant availability, and Wholesale Electricity Spot Market (WESM) rates.

2. Taxes upon taxes – multiple layers of taxation add to the overall burden on consumers.

3. System Loss – charges covering power lost during distribution and unpaid bills. Dayun noted that disconnection orders for non-payment were suspended during August and September, and unpaid bills are absorbed under system loss, which paying consumers eventually shoulder.

4. Lifeline Rate Subsidy (4Ps Program) – Dayun explained that the government did not allocate a budget for the program. Consumers using 100 kWh and above subsidize beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) who consume below 100 kWh per month, as follows:
a. 0 to 50 kWh – 100% discount (no payment)
b. 51 to 70 kWh – 35% discount
c. 71 to 100 kWh – 20% discount

The discussion highlighted how these factors collectively push power rates higher, affecting the competitiveness of local businesses and the daily expenses of families.

The Rotary Club of Tacloban holds its regular lunch meeting every Thursday until 2:00 p.m., inviting heads of government agencies, private sector leaders, and individuals who support Rotary’s objectives to discuss matters affecting the community.

Tacloban Rotarians call their time and effort contribution “Service Above Self.”