ELECTRIC consumers of Negros Occidental Electric Cooperative (Noceco) may incur higher bills this month, as the utility announced an increase of almost P1.37 per kilowatt (kWh) in its residential power rate.
The power distribution utility, catering to electric consumers in the southern portion in the province, from Pulupandan to Hinoba-an, has a prevailing rate of P10.2921 per kWh from the previous month's P8.9242 per kWh.
Noceco, in an advisory, said the main driver of the higher electricity rate this month is the P1.1736 per kWh increase in the generation charge, which moved from P4.3407 to P5.5143 per kWh.
The upward movement in generation cost is attributed to the increase P2.7034 per kWh from Wholesale Electricity Spot Market (Wesm).
The current average price of Wesm is P5.2745 per kWh compared to its previous month cost of P2.5711 per kWh.
There's also an increase of P0.0167 per kWh in its Power Supply Agreement (PSA) with Kepco Salcon Power Corporation (KSPC).
Noceco said the current price of KSPC is P6.0873 per kWh compared to P6.0706 per kWh in March.
Another factor contributing to higher generation cost is the P0.3459 per kWh increase in its PSA with Palm Concepcion Power Corporation (PCPC).
The current price is P6.4653 per kWh compared to its previous month cost of P6.1194 per kWh, the cooperative said.
Other factors that contributed to the overall increase in rate included systems loss rate which rose by P0.1316 per kWh; value-added tax (VAT) on generation - P0.0965 per kWh increase; VAT on transmission - P0.0029 per kWh increase; and subsidy rates - P0.0173 per kWh increase.
It added that the overall rate increase is cushioned by the reduction of P0.0540 per kWh in transmission rate for residential customers.
Meanwhile, Noceco's distribution, supply and metering charges remain unchanged despite the increase in the overall electricity rate for this month.
Member-consumers are advised to conserve energy and to be aware of their energy consumption to avoid paying high electricity bills.
"Generation and transmission rates are pass-on charges paid to the respective power suppliers and National Grid Corporation of the Philippines (NGCP)," it said, adding that "thus, the collected amounts on these charges are not retained by Noceco."