The INCREASE for the month of April 2022 compared to the previous month is due to the increase in generation cost. The said increase is due to the increase of prices in the Wholesale Electricity Spot Market (WESM) and coal based power suppliers. WESM prices were higher because of continued tight supply conditions, as peak demand in Luzon rose by more than 1,500 MW from the February to March supply months. The sustained high WESM prices led to the secondary price cap being imposed for 4.5% of the March trading intervals. Further, the persisting Malampaya gas supply restriction that forced the gas plants to shift to more expensive liquid fuel added pressure to high WESM prices. The impact of the higher international coal prices and peso depreciation have affected the rates of coal based power suppliers. The on-going increase on the global fuel prices have significant effect on power rates, particularly on the generation charge. The aforementioned occurrences have resulted to the 3% average increase in the Total Energy Charges despite the 9% (0.1065 PhP/kWh) decrease in transmission charge. The equivalent of the increase is estimated at PhP 25.35 with VAT and PhP 24.3 without VAT for Residential Consumers with 100 kWh consumptions.For Off-Grid consumers (Gigantes Island Only), the implementation of SAGR of PhP 6.4749 per kWh starting April 2022 relative to ERC Case No. 2018-048 RC had triggered the 10% increase with an estimated equivalent of PhP 103.62 with VAT and PhP 93.51 without VAT for Residential Consumers with 100 kWh consumptions.
COMPOSITION OF RATES
DSM (Distribution, Supply and Metering) is the only portion of your bill that is retained by ILECO III to cover its entire operation and maintenance expenses. This rate remains the same (Php 1.4640) since its first implementation in 2009. The remaining charges mentioned above are pass – through charges. The collected amount under these charges are remitted directly to the respective Power Suppliers, NGCP and other Government Owned and Controlled Corporations (GOCC) such as PSALM and TransCo.
