“Generation charge hike due to high prevailing coal prices” – KAELCO

Tabuk City, Kalinga – The Kalinga Electric Cooperative (KAELCO) on Friday, May 20, 2022, announced that an increase in generation charges is expected affecting not only this month’s power bill but also the bills in the succeeding months.

KAELCO explained that this is mainly is due to the high prevailing coal prices as communicated by MasinLoc Power Partners Co. Ltd.

Generation charge is the ratio of the total power cost and the total volume of energy (kWh) which KAELCO procured from several power suppliers that is passed on to its member-consumer-owners (MCOs) through their electric bills.

“We would like to inform the public that we will be expecting an increase in Generation Charges in April and May 2022 Power Bills and succeeding months because of the high prevailing coal prices,” KAELCO wrote in their announcement.

Further, in a communication letter by the power supplier they explain that the sudden hike is due to the increase in cost of fuel which they described as a major component of the generation charge.

They explained that ‘commodity markets including coal-are experiencing a major shock on its prices worldwide primarily brought about by the conflict between Ukraine and Russia’, adding that the war continues to impact the coal prices as its supply drop significantly while its demand rises continuously.

“Moreover, the Newcastle index has increased immensely in a span of 1 year, from USD 93.29,” they added.

In connection, KAELCO is now appealing to public to understand the situation given that they have no control over said issue.

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