The Negros Occidental Electric Cooperative and the Northern Negros Electric Cooperative have decreased their rates this month.
Jonas Discaya, general manager of Noceco, said the new residential rate for this month is P8.5426 per kilowatt hour (kWh), or a decrease of P0.5139 per kWh, from P9.0565 per kWh in April.
He said the main driver of the lower electricity rates is the P0.4653 per kWh reduction in the generation charge, from P4.5204 to P4.0551 per kWh.
The decrease in the generation charge was due to the P0.8813 per kWh reduction from the Wholesale Electricity Spot Market, P0.0104 per kWh drop in the Power Supply Agreement (PSA) with Palm Concepcion Power Corp., and P0.0327 per kWh decrease in the PSA with KEPCO SPC Power Corporation.
Other factors that contributed to the overall reduction in the rates included the drop in the system loss rate, value-added tax in generation rate of residential customers, and subsidy rates, he said.
Even with the decrease in the overall rate, Discaya noted an increase in the transmission rate and VAT on the transmission rate.
Paul Almedelia, Noneco corporate planning department manager, said yesterday that the rate for this month is P10.1698 per kWh from the previous month’s P10.7937, or a decrease of P0.6240 in the residential rate.
The adjustment was attributed to the P0.3707 per kWh decrease in generation cost due to low spot market price, P0.1827 per kWh drop in transmission, and system loss charges, he said.
Also contributing to the decrease was the P0.0706 per kWh reduction in other charges due to the temporary collection of feed-in-tariff reduction on government taxes.*
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