NORECO 2 announces power rates reduction

DUMAGUETE CITY, Philippines – The Negros Oriental 2 Electric Cooperative has announced to its member-customer-owners a reduction in the power rates for this month.

This is the second time in a row that NORECO 2 adjusted its power rates in relation to the amendments in the contract between the cooperative and the Green Core Geothermal Incorporated, the primary source of power of the said electric firm.

NORECO 2 has been enjoying also the 3.2 percent prompt payment discount accorded by GCGI to its prompt-paying clients, said its general manager, Dionefred Macahig, in a press release on Monday.

The adjusted rates would differ for three consumer types: residential, low voltage and high voltage consumers.

For residential consumers, the December 2014 billing was pegged at P9.6122 per kilowatt hour versus P9.3140 per kWh for January 2015, or a decrease of P0.2982 per kWh.

Low voltage consumers will be charged P8.4643 per kWh for January this year, as opposed to a P8.7632 per kWh last December, or an adjustment of P0.2989 per kWh.

On the other hand, high voltage consumers will see a decrease in their January 2015 billing of P0.2843 per kWh or at a lower rate of P6.8283 per kWh than the P7.1126 per kWh rate last December.

The NORECO 2 management thanked its MCOs for the continuous support, which allowed the decrease in power rates, resulting in prompt payment to GCGI.

Last December 11, NORECO 2 and GCGI signed an amendment to their Power Supply Agreement for a P0.45 per kWh rate reduction that took effect last October 26.

The extended term will be from December 25, 2020 to December 25, 2035 with the delivery of 25-megawatt geothermal power at a reduced rate pursuant to the re-pricing provisions and market-based structure in the original ten-year agreement.