BILECO June 2019 rates


A remarkable drop of power rate was reported in the second quarter of 2019 based on BILECO’s latest report on unbundled rates. The average effective rate in the second quarter is P8.8167 per kwh from the P12.275 per kwh average rate in the preceding year.

The historic decrease of said rate is worth noting after several years of experiencing high effective rates in both residential and commercial connections primarily due to unstable and high generation charges.

Reports from the previous years revealed that it is by far the least power rate for the last five years. Power rate for residential in June 2019 dipped to P8.7137 per kwh while commercial and public building was at P7.5479 per kwh. Average rate in 2015, 2016 and 2017 was nailed at more than P10 per kwh while the 2018 average rate swelled to P12.275 per kilowatt-hour.

The components which make up the coop’s power rate comprised of generation charge which is primarily the highest chunk of the monthly power rate, transmission charge, system loss, and government charges and subsidies which include government taxes. The only component that is fixed over time is the distribution, supply and metering charge or DSM. It is where the coop’s maintenance and administrative expenses are taken.

The generation rate or the unit price of electricity traded from the suppliers of electric energy in contract with the coop has significant effects on the monthly power rates. Presently, BILECO has entered a one-year contract with the Power Sector Assets and Liabilities Management, Corp. (PSALM), a government owned and controlled corporation created by virtue of Republic Act. No. 9136 (RA 9136) otherwise known as the Electric Power Industry Reform Act (EPIRA) of 2011 from December 25, 2018 to December 26, 2019.

According to Mr. John Mocorro, the acting energy trader of BILECO, the momentum of enjoying a lower power rate is expected to remain until December 2019 or a month thereafter.

Mocorro also mentioned that the coop is obligated to make purchases with the Wholesale Electricity Spot Market or WESM created under Section 30 of the EPIRA law. WESM is another venue for trading electricity where generators sell their excess capacities not covered by contract and where the coop buy additional capacities on top of their contracts.

Despite having a low power rate, BILECO advised its member-consumers to observe energy conservation measures to maximize its benefits.


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