BY DAVE SUAN ALBARADO
Residents of Tagbilaran City can expect lower electricity bills this holiday season, with a reduction of P1.59 pesos per kilowatt hour (kWh) in the total electricity rate compared to last month’s billing.
According to Bohol Light, operated by Primelectric, residential consumers in Tagbilaran City will pay P10.67 pesos per kWh, down from P12.27 pesos in November.
Commercial consumers will also see a decrease, with a new rate of P10.38 pesos per kWh, a reduction of P1.57 pesos per kWh.
The new rates will be reflected in the monthly billing cycle covering consumption from Nov. 15 to Dec. 15, 2024, with bills being sent out starting Dec. 16, 2024.
This is the second reduction in electricity rates since Primelectric took over the operation of Bohol Light in September 2024.
At that time, the rate was P13.62 pesos per kWh, and consumers saw an immediate decrease of P3.81 pesos per kWh in their October billing.
The fluctuations in electricity prices are attributed to unstable costs in the Wholesale Electricity Spot Market (WESM), which affects the calculation of the Power Generation Cost.
The Generation and Transmission rates, considered “pass-through” charges, reflect the costs billed by power generators and the National Grid Corporation of the Philippines (NGCP) to Bohol Light and other private distribution utilities and electric cooperatives.
These charges are then passed on to consumers and remitted to the power suppliers and NGCP.
The Distribution rate, which includes Distribution, Supply, and Metering (DSM) charges, remains unchanged at P0.9840 pesos per kWh.
These charges are strictly regulated by the Energy Regulatory Commission (ERC) and have remained steady since 2015.
The Wholesale Electricity Spot Market (WESM) is a trading platform where electricity is bought and sold in real-time, allowing generators and distributors to adjust their prices based on demand.
The National Grid Corporation of the Philippines (NGCP) is a privately owned corporation that operates and maintains the country’s power transmission network.
The Energy Regulatory Commission (ERC) is a government agency responsible for regulating the energy industry, including setting rates and standards for electricity distribution.