The power rates of Central Negros Electric Cooperative (CENECO) and the Negros Occidental Electric Cooperative (NOCECO) have dropped this January.
The rates of CENECO are down P1.0949/kWh and NOCECO’s dropped by P0.9587/Wh, both cooperatives announced Monday, January 16.
The average residential rate of CENECO for January is P15.1057/kwh, a decrease by P1.0949/kWh, from last month’s P16.2006/kWh, its acting general Vic Alvaro said.
Alvaro said the total net reduction in generation charges by 9.31 percent is due to the downward adjustment of about P1.2415/kWh in the average Wholesale Electricity Spot Market (WESM) price from P10.1146/kWh to P8.8731, as well as a decrease in fuel cost due to a one-time Palm Concepcion Power Corporation (PCPC) fuel discount of P0.27/kWh for the December 2022 billing of its 35MW power supply agreement.
He also cited the WESM power bill adjustment amounting to P42 million or a rate reduction of around P0.56/kWh due to changes in Metered Quantity (MQ) for April 26, 2022 to May 25, 2022, he added
Alvaro said CENECO also welcomes the news of a possible reduction in the generation charge next month, particularly from PCPC. The reduction in the generation charge which amount is not yet determinable until CENECO receives the official billing from PCPC will redound to lower electricity rates for the consumers, he said.
PCPC for September and December already extended fuel discounts amounting to P27.7 million and P22.6 million, respectively. These resulted to the reduction in generation charge billed to the consumers, he said.
He reiterated that the generation charge is a pass-through cost from the power suppliers, and CENECO is not allowed to make profit out of it.
CENECO continues to hope for additional reduction in generation rates coming from coal-fired power suppliers once the Energy Regulatory Commission is done with its review, Alvaro added.
Meanwhile, NOCECO said its P0.9587 per kWh decrease in the total electricity rates is driven by the total generation charge which went down by by P0.7784 per kWh compared to last month.
The main factor in the decrease in generation charge is the P1.5470 per kWh reduction in the PCPC rate from its previous power cost of P16.4255 per kWh, NOCECO said.
The Philippine peso strengthening against the dollar continues to contribute in the decrease in the power supplier’s computation of the prices passed-on to NOCECO, it said.
The WESM rate decreased from P10.0006 per kWh in the previous month to P9.3784 per kWh in January 2023. The KEPCO-SALCON Power Corporation’s rate also decreased by P0.2220 per kWh, NOCECO added.*