NOCECO ELECTRICITY RATES
Reasons of Decrease in rates for the Month of March 2021
The main driver of the lower electricity rates this month is the Php 0.3781 per kWh decrease in the generation charge, which moved from Php 4.7188to Php 4.3407 per kWhr.
The decrease in generation charge is due to the reduction of Php 1.0785 per kWhr from Wholesale Electricity Spot Market (the current average price of WESM is Php 2.5711 per kWhr compared to its previous month cost of Php 3.6496 per kWhr).
Other factors that contributed to the overall reduction in rates are the following:
- System loss rate (decrease of Php 0.0541 per kWhr)
- Transmission rate for residential customers (decrease of Php 0.0328 per kWhr)
- VAT on transmission (decrease of Php 0.0049 per kWhr)
The overall rate decreased despite the increase of the following:
- Price increase of Php 0.0733 per kWhr in the Power Supply Agreement (PSA) from KEPCO SPC Power Corporation (the current price is Php 6.0706 per kWhr compared to its previous month cost of Php 5.9973 per kWhr).
- Increase of Php 0.2732 per kWhr in the Power Supply Agreement (PSA) from Palm Concepcion Power Corporation (The current price is Php 6.1194 per kWhr compared to its previous month cost of Php 5.8462 per kWhr)
- Subsidy rates (total increase of Php 0.0001 per kWhr)
- VAT on generation (increase of Php 0.0015 per kWhr)
NOCECO’s distribution, supply and metering charges remain unchanged despite the reduction 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 despite the decrease in the overall electricity rates. 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