Negros consumers face higher September POWER RATES

By Dolly Yasa and Glazyl Y. Masculino

BACOLOD CITY — Over 200,000 consumers of the Negros Electric and Power Corporation (NEPC) are bracing for higher electricity rates in September.

NEPC announced on Saturday, September 21, 2024, that the average residential electricity rate has increased to PHP11.6884/kWh, up from last month’s rate of PHP10.8380/kWh.

The rate hike of PHP0.8504/kWh is attributed to several factors.

A 3.34 percent increase in the generation charge contributed to the rise, driven by a higher Wholesale Electricity Spot Market (WESM) price, which jumped from PHP6.6063/kWh to PHP7.0550/kWh, reflecting an upward adjustment of PHP0.4487/kWh.

Additionally, the average transmission rate increased by 67.80 percent due to higher Ancillary Services (AS) rates following the resumption of the AS Reserve Market (AS-RM).

NEPC noted that PHP9.6514/kWh of the total electricity rate comes from pass-through charges, including generation and transmission charges, Energy Regulatory Commission (ERC)-approved adjustments, government subsidies, and taxes.

Only PHP1.1866/kWh goes to NEPC for Distribution, Supply, and Metering (DSM) charges and the Reinvestment Fund for Sustainable Capital Expenditures (RFSC), which cover the company’s administrative and operational costs. NEPC has not increased its DSM and RFSC rates since 2010.

Despite the September rate increase, NEPC spokesperson Jonathan Cabrera stated that their rates remain the lowest among distribution utilities in Negros Island.

NEPC was established through a joint venture between Central Negros Electric Cooperative (CENECO) and Primelectric Corporation, owned by businessman Enrique Razon.

It was granted a 25-year legislative franchise by President Ferdinand Marcos Jr. on July 26, 2024.

While awaiting its Certificate of Public Convenience and Necessity from the Energy Regulatory Commission (ERC), NEPC has begun taking over CENECO’s operations.

Meanwhile, Negros Occidental Northern Electric Cooperative (Noneco) also announced a rate increase, with electricity prices rising to PHP15.0410/kWh in September from PHP13.7988/kWh in August, a difference of PHP1.2422.

The 9 percent increase was attributed to a rise in WESM prices and higher Ancillary Service Charges (ASC) from the National Grid Corporation of the Philippines (NGCP).

Noneco stated that only 11 percent of its total rate this month, or PHP1.6109/kWh, goes to DSM charges, which have not increased since 2010.

Consumers are advised to monitor their kilowatt-hour consumption closely and practice energy conservation to manage their electricity bills.

The Northern Occidental Central Electric Cooperative (Noceco) has yet to release its advisory regarding September rates.