Central Negros Electric Cooperative Inc. (CENECO) and Northern Negros Electric Cooperative (NONECO) have increased their power rates in November, while consumers of the Negros Occidental Electric Cooperative can save on their bills with a decrease in its rates.
Maria Agnes Claro, officer-in-charge of the CENECO Office of the General Manager, said there was an increase of P0.7163 per kilowatt hour (kWh) this month, from P10.4110 per kWh in October to P11.1273.
The rate hike was attributed to the increase in generation, transmission, system loss charges and other pass-through charges such as lifeline, senior and value-added tax, she said.
Part of the increase in generation charge is the recomputation of the Wholesale Electricity Spot Market (WESM) using the new formula for the Net Settlement Surplus for December 2019 to August 2020 at P32.9 million, she said.
“CENECO has requested for a staggered payment of the P32.9 million but was declined by WESM considering that the ERC Advisory on the implementation of the Bayanihan to Recover as One Act allowing staggered payments was only issued last October 29,” she added.
Moreover, the pass-through charges equivalent to P9.9407/kWh of the total power rate include the generation and transmission charges, Energy Regulatory Commission (ERC)-approved adjustments, government subsidies and taxes, Claro said.
“Only P1.1866/kWh of the power rate goes to CENECO through Distribution, Supply, Metering (DSM) Charges and Reinvestment Fund for sustainable capital expenditures for its administrative and operational services,” she said.
CENECO serves the cities of Bacolod, Bago, Talisay, and Silay, and towns of Murcia and Salvador Benedicto.
Paul Almedelia, NONECO corporate planning department manager, said the new residential rate is P10.0466/kWh from P9.8681 per kWh in October, posting an increase of P0.1785.
He said the adjustment in the residential rates was due to the P0.1649 increase in transmission and system loss charges following the hike in ancillary services of National Grid Corporation of the Philippines, and the 0.0391 increase in other charges like VAT.
He also noted a P0.0255 decrease in the generation charge.
NONECO serves to electric consumers in the north, from E.B. Magalona to San Carlos City.
For NOCECO, its residential rate for November dropped by P0.5418, from P9.4417 per kWh in October to P8.8999 per kWh.
Jonas Discaya, NOCECO general manager, said the main driver of the lower electricity rates this month was the P0.6109 per kWh decrease in the generation charge from P4.9208 to P4.3099 per kWh.
Other factors that contributed to the overall reduction in rates include the P1.3711 per kWh reduction of the WESM price, the P0.0244 per kWh decrease in the Power Supply Agreement (PSA) from Palm Concepcion Power Corporation, and the P0.2542 per kWh drop in the PSA from KEPCO SPC Power Corporation, he said.
There was also a decrease in the system loss rates, subsidy rates, and VAT in generation rate, he said.
On the other hand, there was an increase in the transmission rate of residential customers and VAT on the transmission rate.
NOCECO caters to electric consumers in the south, from Pulupandan to Hinoba-an.*