NOCECO ELECTRICITY RATES
Reasons of Increase in Rates for the Month of January 2021
The main driver of the higher electricity rates this month is the Php 1.0215 per kWh increase in the generation charge, which moved from Php 3.1159 to Php 4.1374 per kWhr.
The increase in generation charge is due to the following:
- Increase of Php 0.4400 per kWhr from Wholesale Electricity Spot Market (the current average price of WESM is Php 2.6257 per kWhr compared to its previous month cost of Php 2.1857per kWhr).
- The resumption of normal operation of Palm Concepcion Power Corporation (PCPC) in which the share of its power contracted by NOCECO was replaced by WESM last month
Other factors that contributed to the overall increase in rates are the following:
- System loss rate (increase of Php 0.1200 per kWhr)
- Subsidy rates (total increase of Php 0.0031 per kWhr)
- VAT on generation (increase of Php 0.0918 per kWhr)
- Implementation of the new Feed-In-Tariff Allowance (FIT-ALL) rate of Php 0.0983 per kWhr (An increase of Php 0.0488 per kWhr from its previous rate of Php 0.0495 per kWhr) In compliance to the Energy Regulatory Commission (ERC) decision dated November 23, 2020 granting Provisional Authority to the ERC Case No. 2019-056 RC.
The increase in the overall residential electricity rates is cushioned by the decrease on the following:
- A decrease of Php 0.0639 per kWhr in transmission rate for residential customers.
- A minimal reduction of Php 0.0195 per kWhr in VAT on transmission.
- Price reduction of Php 0.0205 per kWhr in the Power Supply Agreement (PSA) from KEPCO SPC Power Corporation (the current price is Php 5.7951 per kWhr compared to its previous month cost of Php 5.8156per 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