The Central Negros Electric Cooperative Inc. announced Monday, December 27, that its average residential electricity rate for December is at P8.7761 per kilowatt hour.
It posted a decrease of P1.2859/kWh from last month’s rate of P10.0620/kWh.
The P1.2859/kWh drop can be attributed to the reduction in generation, transmission and system loss charges, implementation of July 2021 WESM power bill reduction amounting to 79.76M net of VAT due to ERC letter dated Sept. 20, 2021 to mitigate the impact of the outage of Cebu-Negros submarine cable, as well as other pass-through charges such as VAT.
The pass-through charges equivalent to P7.5895/kWh of the total power rate include the Generation and Transmission charges, ERC-approved adjustments, government subsidies and taxes.
Only P1.1866/kWh of the power rate goes to CENECO through Distribution, Supply, Metering (DSM) Charges and Reinvestment Fund for Sustainable CAPEX (RFSC) for its administrative and operational services.
Since 2010, CENECO’s DSM and RFSC rates have not increased.
For every kWh consumed by residential consumers, roughly 10 to 14 percent of the total bill amount goes to CENECO. Thus, in monitoring the monthly electricity usage, consumers are advised to look at their kilowatt-hour consumption and not at the bill amount since it varies depending on the pass-through charges, CENECO said.
CENECO continues to remind its electricity consumers to conserve energy to avoid paying high electricity bills.*