Power Rate Update
(January to June, 2025)
& Mandated Charges
The gradual decrease of generation rate from January to June is due to the lower average price in the Wholesale Electricity Spot Market (WESM). ZAMECO II is currently sourcing its electricity supply from the WESM due to the expiration of its contract for the sale of electric energy from MPPCL last Febuary 25, 2025. The said lower electricity prices in the WESM is brought about by higher power supply margin and improved market conditions.
Additionally, the implementation of ERC Resolution No. 14 s. of 2022 (Article 5 Section 1) which allows for the Automatic Cost Adjustment and True-up Mechanism of any over- or under-collection in generation and transmission charges, which further affects the power rate adjustments.
Despite changes in the Monthly Power Rate, ZAMECO II’s revenue (Distribution, Supply and Metering charges) has remained unchanged since Febuary 2011, in accordance with ERC Case No. 2009-126 RC.
The variations in the Monthly Power Rate are primary driven by changes in Generation Charges, which are pass-through costs.