THE Negros Occidental Electric Cooperative (Noceco) has announced that its power rate for residential consumers this July 2021 dropped by almost P0.68 per kilowatt-hour (kWh).
The power distribution utility caters to electric consumers in the south, from Pulupandan to Hinoba-an.
Noceco, in an advisory, reported that from P12.8058 per kWh in June, the rate went down to P12.1278 per kWh.
Its general manager Jonas Discaya said the main driver of the lower electricity rate this month is the P0.3987 per kWh reduction in the generation charge which moved from P7.6456 to P7.2469 per kWh.
Discaya said the lower generation charge is due to the price reduction of P0.7698 per kWh from Wholesale Electricity Spot Market (Wesm)
"The current average price of Wesm is P8.3587 per kWh compared to its previous month cost of P9.1285 per kWh," he added.
Other factors that contributed to the overall reduction in rates included decreases in systems loss rate - P0.1012 per kWh; value-added tax (VAT) on generation - P0.0844 per kWh; transmission rate for residential customers - P0.0658 per kWh; VAT on transmission for residential customers - P0.0154 per kWh; and subsidy rates - P0.0125 per kWh.
Discaya pointed out that the overall rate decreased despite the increase of P0.1358 per kWh in the Power Supply Agreement (PSA) with Palm Concepcion Power Corp. (PCPC).
The current price is P6.9011 per kWh compared to its previous month's cost of P6.7653 per kWh.
There was also a price increase of P0.1043 per kWh in the PSA with Kepco Salcon Power Corporation (KSPC).
The current price is P6.5053 per kWh, which is higher compared to P6.4010 per kWh last month.
Discaya said the utility's distribution, supply and metering charges remain unchanged despite the decrease in the overall electricity rate for this month.
He advised member-consumer (MCOs) to conserve energy and be aware of their energy consumption to avoid paying high electricity bills despite the decrease in the overall electricity rates.
"Generation and transmission rates are pass-on charges paid to the respective power suppliers and National Grid Corporation of the Philippines (NGCP)," the general manager said, adding that "thus, the collected amounts on these charges are not retained by the cooperative."