SORECO II

In compliance with IATF Resolution No. 148-B, 149 and LGU EOs, SORECO II implements the “No Vaccination Card, No Entry” policy. Also, as per DOLE-DOH-DILG-DOTr-DTI Joint Memorandum Circular 21-01 Series of 2021, MCOs and employees are encouraged to use StaySafe.Ph app when entering the office. If not applicable, manual logging/ registration will be required for contact tracing purposes. The minimum health protocols must also be observed at all times.

For residential consumers, the PHP 12.7777/kWh basic power rate for January 2022 is PHP1.7571 higher than the December 2021 power rate. This is due to the PHP 1.360/kWh increase in Generation Charge brought about by the USD 6.5754 increase in coal prices for the period that resulted in a PHP 1.6289/kWh rate increase in contracted power supply. Transmission Charge increased by PHP 0.2245/kWh due to continued power supply issues in the Luzon Grid resulting from power plant derations that also resulted in PHP 0.4580/kWh increase in WESM prices. System Loss Charge also increased by PHP 0.1726/kWh due to increased Generation Charge. All other charges remained fixed, as set by ERC. Below is the comparative table for the implemented December 2021 and January 2022 residential consumer basic power rates.

Low Voltage basic power rate of PHP 10.4356/kWh for January 2022 is costlier by PHP 1.5917/kWh as compared to PHP 8.8439/kWh rate in December 2021. Higher Voltage basic power rate of PHP 9.2768/kWh for January is costlier by PHP 1.5326 than the PHP 7.7442/kWh December rate. All basic charges are still subject to the imposition of taxes and other charges set by ERC. Indonesia, which supplies 98% of the Philippine energy sector’s coal requirements, has imposed a total coal export ban for the whole month of January 2022. The price of coal in the international market also remains high due to demands in China and Europe and is projected to recover by the first half of 2022. The production of the Malampaya natural gas field also remains limited.

Pass-on power rates decreased, October 2021 billing month.

Generation System Charge is Php5.2202/kWh with a 0.4632/ kWh difference from the September rate.

Transmission System Charge is Php1.2468/ kWh with a 0.4046/ kWh difference from the September rate.

System Loss Charge is Php0.7016/ kWh with a 0.0482/kWh difference from the September rate.

Residential Basic Charge is Php9.7767/ kWh with a 0.9161/ kWh difference from the September rate.

Likewise, the rate for Low Voltage Basic Rate Charge is Php7.6661/kWh with a 0.6092/kWh difference from the September rate and the Higher Voltage Basic Charge is Php6.5904/kWh with a 0.5114/kWh difference from the September rate.

The SORECO II Basic Charge for Residential Consumers raised from the July 2021 rate which was 10.5651/kWh to 10.7956/kWh in August 2021, indicating an increase of 0.2305 per kWh. The pass-on rates that affect this rate increase are Generation Charge that decreased to 0.0248/kWh, Transmission Charge with an increase of 0.245/ kWh, and System Loss Charge which also raised to 0.0103/kWh.

While there seem to be endless charges that appear on SORECO II Statement of Account, not everything therein goes actually to SORECO II. Only 15% of the bill goes to SORECO II. SORECO II is just mandated to gather these charges and serve as a collecting agent to simplify the process and remit said collections to corresponding entities connected in the power supply chain. Here is the guide to help you better understand what do these charges mean and where do they go.

GENERATION CHARGE (38%): Refers to the charge associated with the purchase of power from suppliers. This charge goes to the generation companies that supply the power. For SORECO II, the suppliers are the GN Power Mariveles Coal Plant and the Wholesale Electricity Spot Market.

SYSTEM LOSS CHARGE (6%): Refers to the cost-recovery of power that is lost due to technical and non-technical system losses. Effective May 2018 based on ERC Resolution No. 20, Series of 2017, only 12% of the System Loss will be recovered by SORECO II.

TRANSMISSION CHARGE (10%): This charge is paid to the NGCP for transporting power from generation companies to SORECO II substationsDISTRIBUTION, SUPPLY and

METERING (DSM) CHARGE (15%): This charge component goes to SORECO II which comprises 15% of the power bill for rendering service, maintaining, and delivering electrical power supply to the member-consumer-owner.

REINVESTMENT FUND FOR SUSTAINABLE CAPEX (RFSC) (5%): RFSC is intended to fund the rehabilitation and upgrading of the existing network and non-network assets of the coops.

SUBSIDIES (LIFELINE and SENIOR CITIZEN SUBSIDY)Lifeline Subsidy Rate are charge to non-lifeline customers to cover the lifeline discount provided to marginalized/low-income end-users, while, the Senior Citizen Subsidy Rate is charged to non-senior citizen-consumers to subsidize the 5% discount given to the registered senior citizen whose monthly consumption does not exceed 100kWh.

OTHER CHARGES (UNIVERSAL CHARGES, FIT-ALL, GRAM, ICERA, DWS, TAFPPCA, and TAFxA) (14%): SORECO II is mere collecting agent of these Charges and remits the same to the National Grid Corporation of the Philippines and to the Power Sector Assets and Liabilities Management (PSALM) Corporation as ordered by the Energy Regulatory Commission (ERC).

TAXES (12%): Value-Added Tax on Generation, Transmission, DSM and Other Charges are collected by SORECO II and remitted to the Bureau of Internal Revenue (BIR).

Rates comparison (April and May 2021)