Higher fuel costs results in soaring residential power rates

[ASEAN NOW News]

(PNA Bacolod file photo)

 

BACOLOD CITY – Higher fuel and generation costs have increased the residential power rates of all three distribution utilities in Negros Occidental in July.

 

The increases were announced in separate advisories this week by the Central Negros Occidental Electric Cooperative (Ceneco), Northern Negros Electric Cooperative (Noneco), and the southern-based Negros Occidental Electric Cooperative (Noceco).

 

In Bacolod and the neighboring cities of Bago, Silay, and Talisay; and the towns of Don Salvador Benedicto and Murcia, the average residential power rate for the billing month of July was pegged at PHP14.18 per kilowatt hour (kWh), a report of Ceneco said.

 

This means an increase of PHP2.07 per kWh from only PHP12.11 per kWh in June.

 

Acting general manager Ervin Stan Leo Ticar attributed the upward adjustment to the increase in generation, transmission, and system loss charges caused by the surge in supplier Palm Concepcion Power Corp.’s (PCPC) fuel rate.

 

Increases in power cost, as well as other pass-through charges and value-added tax, were also noted, Ticar said.

 

Over at Noceco, general manager Ray Bustamante said the residential power rate has increased by PHP1.76 per kWh from the previous month’s PHP13.76 to PHP15.52 per kWh.

 

He pointed out that the steadily increasing cost of fuel rates in their contracts with PCPC and the increase in costs of power purchased from the Wholesale Electricity Spot Market have contributed to the hike.

 

Another main driver is the higher cost in generation charge, Bustamante said.

 

In the north, Noneco charged an increase of PHP2.14, pushing the residential power rate from only PHP14.43 per kWh in June to PHP16.57 per kWh for the current billing month.

 

The rise is generally attributed to the high fuel cost in the generation charges of contracted private power generators and the increase in electricity prices in the market, its advisory said. (PNA)

 

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