THE Negros Occidental Electric Cooperative (Noceco) has announced a drop of P0.2922 per kilowatt (kWh) in its residential power rate for May 2021.
From P10.2921 per kWh in April, its prevailing rate went down to P9.9999 per kWh.
The power distribution utility caters to electric consumers in the southern part of Negros Occidental, from Pulupandan to Hinoba-an.
Jonas Discaya, general manager of Noceco, said the main driver of the lower electricity rates this month is the P0.1264 per kWh reduction in the generation charge.
The generation cost moved from P5.5143 kWh to Php 5.3879 per kWh.
The lower generation charge is due to the decrease of P0.4830 per kWh from the Wholesale Electricity Spot Market (Wesm).
Discaya said the current average price of Wesm is P4.7915 per kWh compared to its previous month cost of P5.2745 per kWh.
Other factors that contributed to the overall reduction in rates are decreases in transmission rate - P0.0725 per kWh; systems loss rate - P0.0124 per kWh; value-added tax (VAT) on generation - P0.0409 per kWh; VAT on transmission P0.0175 per kWh; and subsidy rates - P0.0225 per kWh.
The overall rate decreased despite the increase in the price of P0.3501 per kWh in its Power Supply Agreement (PSA) with Kepco Salcon Power Corp. (KSPC).
The current price is P6.4374 per kWh compared to its previous month cost of P6.0873 per kWh.
There is another increase of P0.2406 per kWh in the PSA with Palm Concepcion Power Corporation (PCPC).
The current PCPC price is P6.7059 per kWh compared to its previous month cost of P6.4653 per kWh.
Noceco, meanwhile, said its distribution, supply and metering charges remain unchanged despite the reduction in the overall electricity rate for this month.
It urged member-consumers to conserve energy and to be aware of their energy consumption to avoid paying high electricity bill.
"Generation and transmission rates are pass-on charges paid to the respective power suppliers and National Grid Corporation of the Philippines (NGCP)," he said, adding that "the collected amounts on these charges are not retained by the cooperative."