DUMAGUETE CITY -- The cost of electricity that the Negros Oriental II Electric Cooperative (Noreco II) is charging its customers varies monthly due to the corresponding fluctuation in the spot market.
This month’s residential power rate marks an increase of PHP 0.7918 per kilowatt hour for the generation charge, according to a media release by Noreco II on Friday.
The generation charge is a “pass-on charge which covers the cost of power purchased” by the electric cooperative from Green Core Geothermal, Inc. (GCGI), KEPCO SPC Power Corporation, and Wholesale Electricity Spot Market (WESM), Noreco II said.
This constitutes more than 50 percent of the electricity bill.
As Noreco II contracted a 33.2-MW power supply with GCGI and KEPCO, any electrical consumption in excess of this is purchased from WESM, “a market where electricity is traded as a commodity,” thus the fluctuation in the spot market.
Meanwhile, Noreco II has also received a 3.2 percent Prompt Payment Discount (PPD) from GCGI for clients who pay their bills on time.
The PPD that Noreco II received from GCGI in April amounted to more than PHP 3.050 million.
That month’s pass-on generation charge per kWh would have been PHP6.5203 but with the PPD, the actual pass on generation charge per kWh was pegged at PHP 6.472. (PNA)