CENECO: Increase in generation, transmission and system loss, other pass through charges hike power rate

The Central Negros Electric Cooperative, Inc. (Ceneco) said today that its average residential rate for the billing month of February 2022 is P11.5123/kWh, an increase of P3.9133/kwh, from last month’s rate of P7.5990/kWh.

In a press statement, Ceneco said the P3.9113/kWh rate hike can be attributed to the increase in generation, transmission and system loss charges and other pass through charges such as lifeline & senior citizen subsidies, GRAM ICERA adjustment and VAT.

“In contrast with last month, CENECO implemented the last WESM power bill reduction adjustment on January 2022 power rate amounting to P183.225M (P2.83/kWh) in relation to the NGCP submarine cable damage. Said WESM power bill reduction adjustments (which amount varies per month) were the primary driver of the decrease in power rates for the last 3 months (November 2021, December 2021 and January 2022),” it added.

“The pass-through charges equivalent to P10.3257/kWh of the total power rate include the Generation and Transmission charges, ERC-approved adjustments, government subsidies and taxes. Only P1.1866/kWh of the power rate goes to CENECO through Distribution, Supply, Metering (DSM) Charges and Reinvestment Fund for Sustainable CAPEX (RFSC) for its administrative and operational services. Since 2010, CENECO’s DSM and RFSC rate has not increased,” the electric coop added.

“For every kWh consumed by residential consumers, roughly 10 to 14 percent of the total bill amount goes to CENECO. Thus, in monitoring the monthly electricity usage, consumers are advised to look at their kilowatt-hour consumption and not on the bill amount since it varies depending on the pass-through charges as shown above,” Ceneco said.

CENECO Board and Management continue to remind its electricity consumers to conserve energy to avoid paying high electricity bills, it added in its advisory signed by Jose Taniongon, PEE, OIC – Office of the General Manager.*