NOCECO

Press Release

NOCECO ELECTRICITY RATES

NOCECO Announces Increase in Generation Rates Due to Spot Market Prices

NOCECO is delivering a difficult information today to its residential customers of a Php 3.3300/kWh upward adjustment in the electricity rates effective May 2024 billing. We understand this is an unwelcome change, especially considering our reduced reliance on the spot market compared to last month.

The primary driver behind this adjustment is a significant increase in the cost of electricity purchased on the spot market. This rate has risen by 55%, from an average of Php 10.3620/kWh last month to Php 16.0644/kWh this month. While our contract with GNPOWER offers a slight decrease in purchased power costs, the overall generation charge still increases by Php 2.7520/kWh.

We would also like to inform our MCOs that our supplier PCPC has started to deliver replacement power to NOCECO while its power plant is still undergoing necessary repairs.

NOCECO already has a new contract with KEPCO Salcon Power Corporation (KSPC), which targets to significantly reduce our exposure to the volatile spot market. We are expediting the approval process with the Energy Regulatory Commission (ERC) to ensure a swift implementation.

With recent high temperatures, we anticipate an increase in electricity consumption for cooling purposes. This surge in demand, coupled with unscheduled power plant outages, can further drive up spot market prices based on basic economic principles of supply and demand.

It's important to note that NOCECO's Distribution, Supply, and Metering (DSM) charges have remained unchanged since February 2010, even with fluctuations in generation costs. This demonstrates our commitment to maintaining stable and transparent distribution costs for our customers.

We recognize the burden this rate adjustment may cause our valued customers. We are committed to finding solutions that will mitigate the impact of rising electricity prices. We appreciate your understanding as we navigate these industry-wide challenges.

The NOCECO Management

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