The cost of power purchased from power plants significantly increased proportionately from Php 158,330,634.99 with kWh 20,101,961.62 for the month of April 2024 to Php 172,875,380.35 with kWh of 14,544,745.35, resulted to an increase of generation cost by Php 0.6306 per kWh.

Factors affecting the increase of COST OF POWER.

a. Increase in Exposure to WESM and Utilization of Bunker/Diesel Power Plant of NAC due to the increase of SURNECO COINCIDENT PEAK DEMAND.
Other source of power other than the Independent Power Producers and NPC/PSALM is the Wholesale Electricity Sport Market (WESM), wherein SURNECO may opt to buy electricity in lieu of the contracted power plants. The total contracted demand as implemented for the month billing month of May 2024 is only 33.4 mW. However, the actual Coincident Peak Demand of SURNECO as of May 2024 reaches to 39.5 mW. The shortage of 6.1 megawatt was sourced out from WESM with electricity rates cap at Php 32.00 per kwh. Also, SURNECO has activated the embedded generation of Nickel Asia Corporation(NAC) with high fuel cost.

b. Increase in Fuel Cost Rate
Majority of the contracted Power Supply are fueled by Coal, and Bunker/Diesel. This makes SURNECO highly vulnerable to any price increase on imported fuel as it is one of the variable power costs that directly affects any changes in effective generation rate of SURNECO for having direct proportional relationship between fuel cost and effective billing rate..

2. Implementation of the 2023 FIT-ALL Rate in accordance with the ERC decision for ERC case no. 2022-051 RC.
In accordance with the ERC decision for ERC case no. 2022-051 RC (2023 FIT-ALL Rate Application filed by TRANSCO), the implementation to collect the CY 2023 FIT-ALL rate of Php 0.0838 per kWh shall start in the billing month of June 2024.