NOCECO ELECTRICITY RATES
Reasons of Increase in Rates for the Month of October 2020
The main driver of the higher electricity rates this month is the Php 1.1409 per kWhr increase in the generation charge, which moved from Php 3.7799 to Php 4.9208 per kWhr.
- Increase of Php 2.3344 per kWhr from Wholesale Electricity Spot Market (the current average price of WESM is Php 4.5209 per kWhr compared to its previous month cost of Php 2.1865 per kWhr).
- Increase of Php 0.0102 per kWhr in the Power Supply Agreement (PSA) from KSPC (The current price is Php 6.1064 per kWhr compared to its previous month cost of Php 6.0962 per kWhr)
Other factors that contributed to the overall increase in rates are the following:
- Increase of Php 0.0500 per kWhr System loss rate (The current rate is Php 0.7276 per kWhr compared to its previous month cost of Php 0.6776 per kWhr)
- Subsidy rates (total increase of Php 0.0061 per kWhr)
- VAT in generation rate (increase of Php 0.0989 per kWhr)
The overall rate increase is cushioned by the decrease of the following:
- Reduction of Php 0.0826 per kWhr in the Power Supply Agreement (PSA) from Palm Concepcion Power Corporation (The current price is Php 5.8519 per kWhr compared to its previous month cost of Php 5.9345 per kWhr).
- Transmission rate of residential customers (decrease of Php 0.1618 per kWhr)
- VAT on transmission rate (decrease of Php 0.0045 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