The INCREASE for the month of August 2022 compared to the previous month is due to the increase of all charges (includes generation, transmission, system loss and lifeline subsidy). The increase in generation is due to the increased charges from Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM). WESM charges increased by PhP 1.04 per kWh due to tight supply conditions in the Luzon grid, which was placed under Yellow Alert on July 5 due to insufficient operating reserves following the forced outage of several large power plants. Persistently high spot market price triggered the imposition of the secondary price cap almost 27% of the time. The continued impact of the high coal price due to supply restrictions have continued to drive prices upward with the likes of flooding in the Australian region caused disruption at coal production areas and ports, and continues ban on Russian Coal. Also contributing to the rise is the cessation of refund (over/under recoveries) under ERC Case No. 2021-016-CF amounting to PhP 0.1138 per kWh and the implementation of PhP 0.0239 per kWh of UC-ME True up as per ERC Case No. 2013-191-RC. The aforementioned occurrences have resulted to the 6% average increase in the Total Energy Charge. The equivalent of the increase is estimated at PhP 81.67 with VAT and PhP 74.13 without VAT for Residential Consumers with 100 kWh consumption.
Composition of Rate
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 2012. 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.
