The movements on rates per kWh are generally due to the increases or decreases in generation rate. Since the generation rate makes up almost fifty percent (50%) of the total rate charged to the consumers, any movement in the generation rate will cause the total rate per kWh to increase or decrease.
Significant increases in the rates (kWh) can be observed especially during the months of April, June, August and November. The increases for the months of April and June were mainly due to less power drawn from PSALM, while the increase in August was due to initial recovery of past billings from NV Vogt thereby increasing the total generation cost.
The November rates (kWh) are by far the highest rates (kWh) charged to all consumer categories. The high rates are primarily the result of the increase in energy purchased from oil-based power suppliers and the decrease in energy purchased from coal-fired power suppliers.
Changes in the rate per kW are caused by the movements in transmission rates, which vary significantly due to the increases or decreases in transmission costs.
The rate per kW was relatively low in January due to low transmission cost compared to the rest of the year. Meanwhile, there was a decrease in the rate per kW for November as a result of the 5.66% increase in kW demand.