NOCECO ELECTRICITY RATES
Reasons of Decrease in Rates for the Month of May 2021
The main driver of the lower electricity rates this month is the Php 0.1264 per kWh reduction in the generation charge, which moved from Php 5.5143 to Php 5.3879 per kWhr.
The lower generation charge is due to the following:
- Decrease of Php 0.4830 per kWhr from Wholesale Electricity Spot Market (the current average price of WESM is Php 4.7915 per kWhr compared to its previous month cost of Php 5.2745 per kWhr).
Other factors that contributed to the overall reduction in rates are the following:
- Transmission rate (decrease of Php 0.0725 per kWhr)
- System loss rate (decrease of Php 0.0124 per kWhr)
- VAT on generation (decrease of Php 0.0409 per kWhr)
- VAT on transmission (decrease of Php 0.0175 per kWhr)
- Subsidy rates (total decrease of Php 0.0225 per kWhr)
The overall rate decreased despite the increase in the following:
- Price increase of Php 0.3501 per kWhr in the Power Supply Agreement (PSA) from KEPCO SPC Power Corporation (the current price is Php 6.4374 per kWhr compared to its previous month cost of Php 6.0873 per kWhr).
- Increase of Php 0.2406 per kWhr in the Power Supply Agreement (PSA) from Palm Concepcion Power Corporation (The current price is Php 6.7059 per kWhr compared to its previous month cost of Php 6.4653 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. 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