The Central Negros Electric Cooperative, Inc. (CENECO) is implementing a P2.0710/kWh increase in the residential rate for July billing cycle, bringing the cost of power to P14.1881/kWh.
In a statement, CENECO said the P2.0710/kWh rate hike can be attributed to the increase in generation, transmission and system loss charges caused by the surge in PCPC fuel rate from ₱6.4963 to ₱8.0841, increase in power cost and other pass through charges such as Lifeline & Senior, GRAM ICERA Adjustment and VAT.
The pass-through charges equivalent to P13.0015/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.
According to CENECO despite of the increase, only 10 to 14 percent of the total bill amount goes to CENECO.
CENECO advises consumers that in monitoring the monthly electricity usage 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.
