Bacolod City — Consumers of Central Negros Electric Cooperative (Ceneco) are facing what could be the highest residential power rate increase so far this year for May 2024.
Ceneco General Manager Atty. Arnel Lapore announced recently that due to a significant increase in electricity generation costs and market prices, the residential rate for May 2024 will be P15.1632 per kilowatt-hour (kWh).
This marks an upward adjustment of P3.2066/kWh compared to the previous month’s rate of P11.9566/kWh.
“We understand that any increase in electricity rates can be concerning for our consumers,” Lapore said.
He explained that various factors influence the rate computation. The main contributor to the rate hike for May is a 31.96% increase in the Generation Charge, resulting from a rise in the Wholesale Electricity Spot Market (WESM) price from P8.0879/kWh to P12.6706/kWh.
Lapore pointed out that only 8% of the total rate for the month is allocated to Ceneco through Distribution, Supply, and Metering (DSM) charges for administrative and operational services, as well as the Reinvestment Fund for Sustainable CAPEX (RFSC).
He noted that Ceneco’s DSM and RFSC rates have not changed since 2010.
“While 92% of the total rate is composed of pass-through charges such as Generation and Transmission charges, ERC-approved adjustments, government subsidies, and taxes,” Lapore added.
In light of the rate hike affecting many distribution utilities in Western Visayas, Ceneco encourages its consumers to conserve energy to avoid high electricity bills.
Additionally, Ceneco advises consumers to monitor their monthly electricity usage by looking at their kilowatt-hour consumption rather than the bill amount, as it varies depending on the pass-through charges. (Dolly Yasa via The Daily Guardian)