Electrical material prices soar
Prices of electrical materials and equipment soared over the course of the pandemic, according to the updated price index of the National Electrification Administration (NEA) for electric cooperatives.
In a memorandum posted on its website, the NEA published the Equipment and Materials Price Index (EMPI) for 2022 to update the prices from 2019 levels.
The revised index “will serve as a tool for NEA in the evaluation of EC capital expenditure (capex) project and funded projects by subsidies or loans, as well as the basis of electric cooperative in determining the approved budget cost for the procurement of equipment and materials (EM).”
The updating of the EMPI was requested by the National Association of General Managers of Electric Cooperatives (NAGMEC) “due to the significant escalation of the prices of materials and equipment during the COVID-19 pandemic.”
Based on the new index, fuse links registered the highest price hike at 46 percent from EMPI 2019, followed by wood and steel cross arms at 43.7 percent.
Prices of steel poles rose by 21.9 percent; wood poles by 10.3 percent; concrete poles by 6.1 percent; conductors by 33.1 percent; distribution transformer by 8.1 percent; pole line hardware by 35.3 percent; connectors by 29 percent; and insulators by 13.4 percent.
“Subsequently, prices for substation power transformers, protection equipment, steel structures, and accessories have increased as well,” the state-run firm said.
NEA also sought price quotations from various manufacturers, suppliers, traders, contractors to determine the output of the new price index.
With the issuance of the new price index, the NEA directed ECs in the mainland to use EMPI 2022 in coming up with the approved budget cost.
Meanwhile, ECs situated on the island or remote areas should use the same price index but exclusive of the freight and handling incurred in delivering the items from the nearest mainland port up to the point of destination.
The NEA is the agency which supervises 121 power coops nationwide. It has an enhanced lending program for ECs which includes regular, calamity and concessional loans, stand-by and shortterm credit loans, single-digit system loss, renewable energy and modular generator sets loan.