The Northern Davao Electric Cooperative (Nordeco), Inc., formerly Davao del Norte Electric Cooperative or Daneco, released last month an advisory on its electricity tariff hike due to the increase in generation charge by 0.7042 per kilowatt hour (kwh) and to the increase in fuel cost per kwh of its power suppliers where it imports electricity.
Nordeco explained that the rate hike is also due to the rising price of crude oil abroad which has affected the price of imported coal used to run the plants of Nordeco’s generation companies. As a result of this increase, VAT on such charges also increased by 0.1167/kwh.
The electric cooperative reminded consumers to keep in mind that on their electricity bill, approximately 71 percent of it is generation and transmission charges going to generation and transmission companies, while approximately 15 percent is for government fee, and approximately 14 percent only goes to Nordeco, which costs less than P1.3194/kwh, which has not changed since 2012.
The consumption rate, which can be seen in the high bill of the item “KWH Used” if increased or decreased, refers to the consumed electricity during the day that will also reflect on the bill, which will affect the total amount of the electricity bill.
Nordeco is appealing for the understanding of the members-consumers-owners (MCOs).
