NOCECO ELECTRICITY RATES
Reasons of Increase in Rates for the Month of July 2020
The main driver of the higher electricity rates this month is the Php 0.4580 per kWh increase in the generation charge, which moved from Php 4.1462 to Php 4.6042 per kWh.
- Increase of Php 1.1408 per kwhr from Wholesale Electricity Spot Market (the current average price of WESM is Php 3.5388 per kWhr compared to its previous month cost of Php 2.3980 per kWhr).
Other factors that contributed to the overall increase in rates are the following:
- VAT in generation rate (increase of Php 0.0927 per kWhr)
- System loss rate (increase of Php 0.0497 per kWhr)
- Transmission rate of residential customers (increase of Php 0.0037 per kWhr)
- VAT on transmission rate (increase of Php 0.0155 per kWhr)
- Subsidy rates (total increase of Php 0.0100 per kWhr)
The overall rate increase is cushioned by the reduction of the following:
- Decrease of Php 0.3607 per kWhr in the Power Supply Agreement (PSA) from Palm Concepcion Power Corporation (The current price is Php 5.8740 per kWhr compared to its previous month cost of Php 6.2347 per kWhr).
- Reduction of Php 0.0733 per kWhr in the Power Supply Agreement (PSA) from KEPCO SPC Power Corporation (The current price is Php 6.3551 per kWhr compared to its previous month cost of Php 6.4284 per kWhr)
NOCECO’s distribution, supply and metering charges remain unchanged despite the increase in the overall electricity rate for this month.
Member-Consumer-Owners (MCOs) are advised to conserve energy and to be aware of their energy consumption to avoid paying high electricity bill. Please note that the Generation and Transmission rates are pass-on charges paid to the respective power suppliers and National Grid Corporation of the Philippines (NGCP). Thus, the collected amounts on these charges are not retained by NOCECO.
(SGD.) JONAS F. DISCAYA