The minimal INCREASE for Residential Consumers for the Month of June 2022 compared to the previous month is due to the increase in Transmission Charge. The drastic increase of the said charge was triggered by 47.29% increase of Ancillary Service Charge from 2.9M PhP (April 2022 power bill) to 4.3M PhP (May 2022 power bill) driven by the higher fuel cost of ancillary providers. The Ancillary Service refers to reserve capacity that is needed to maintain grid stability and to protect against system failure when power plants go offline that play crucial role in balancing energy supply with demand and building grid resilience. This is one of the pass-through charges from National Grid Corporation of the Phils. (NGCP). Also, coal prices went up by an average of 23% contributing to the higher IPP and PSA charges of coal based power supplier. This is despite of the decrease in the Wholesale Electricity Spot Market (WESM) generation cost by 11% (0.8393 PhP/kWh) from 7.9682 PhP/kWh to 7.1289 PhP/kWh. The aforementioned occurrences have resulted to the increase of 0.42% increase in the Total Energy Charges of Residential Consumers, the equivalent of the increase is estimated at PhP 8.06 with VAT and PhP 5.02 without VAT for the said customer category with 100 kWh consumptions.
Composition of Rates for the Month of June 2022
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.
