The Central Negros Electric Cooperative announced in a press release yesterday that the electricity rate for its residential customers has gone down by 77 centavos from P9.67/kWhr in March 2013 to P8.90/kWhr in April 2013.
The 77 centavos decrease was due to the decrease in Generation System Charge of P0.6710, systems Loss Charge of P0.0949, Lifeline Rate Subsidy of P0.0042, and Senior Citizen Subsidy of P0.0001, the press release said.
The P0.6710 decrease is the biggest contributory factor in the 77 centavos rate decrease. This was brought about by effective and successful management of the CENECO bilateral contract nomination against fluctuating WESM market price, the press release said.
Sell-back energy from bilateral contracts resulted in a bigger discount in CENECO generation purchase cost, it added.
Reduction in generation cost has a usual domino effect in the reduction of other charges like Systems Loss, Lifeline Discount/Subsidy and Senior Citizen discount/subsidy, the press release added.*