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  UNDERSTANDING YOUR BILL

Generation Charge This refers to the associated costs for the purchase of power from suppliers through Power Supply Agreements (PSAs) with BENECO or the Wholesale Electricity Spot Market (WESM).

Transmission Charge This refers to the associated costs to deliver power from the generators to the various BENECO substation facilities passing through the transmission network managed and operated by the National Grid Corporation of the Philippines (NGCP).

System Loss Charge This refers to the cost to recover the power lost due to technical and non-technical system losses. The maximum level of losses that may be recovered by electric cooperatives was set at 12% by the ERC through its Resolution No.17, Series of 2008. BENECO is currently maintaining a 9% level of system loss.

Distribution Charge This covers the cost of developing, constructing, operating and maintaining the distribution system of BENECO.

Metering Charge This is the charge for the cost of reading, operating and maintaining power metering facilities and associated equipment, as well as other costs attributed to the provision of metering service.

Supply Charge This is for the cost of rendering service to customers such as billing, collection, customer assistance and other associated services.

Lifeline Discount or Lifeline Subsidy This is a socialized pricing mechanism under Section 73 of the EPIRA to benefit marginalized/low-income captive market customers. As approved by the ERC, residential customers using up to 45 kWh in a given month enjoy a Lifeline Discount to be applied to the total of the generation, transmission, system loss, distribution, supply and metering charges. The discount varies according to consumption and is funded by a Lifeline Subsidy Charge to be paid by all other customers.

Senior Citizen Discount or Senior Citizen Subsidy This is a socialized pricing mechanism for senior citizens provided under Republic Act No. 8884 or the Expanded Senior Citizens Act of 2010. There are two Senior Citizens Discounts provided to end-users. The first provides a maximum of 5% discount on the electricity bills of residential accounts registered under the name of a senior citizen which consume not more than 100 kWh a month. The second grants a 50% discount on the electricity bills of senior citizen institutions accredited by the Department of Social Welfare and Development (DSWD). The discounts are applied on the qualified customers' total generation, transmission, system loss, distribution, supply and metering charges amount, net of lifeline discount, and are funded through a subsidy to be paid by customers that are not availing of the Senior Citizen Discount or the Lifeline Discount. The discount extended will be recovered through Senior Citizen Subsidy to be charged to all other types of consumers not enjoying the discount.

Value Added Tax This is a consumption tax imposed on the sale of electricity and related services through all the stages of generation, transmission, distribution and sale of electricity to the final consumer. It is a form of indirect sales tax because the total of the VAT collected on each sale transaction in all the stages mentioned is charged to the final consumer as part of the purchased price with sellers and utilities acting merely as tax collectors.

Feed-in-Tariff Allowance is an additional tariff levied on consumers of electric power connected to the grid and will be given to renewable energy (RE) players as an incentive to invest in the more expensive but less lucrative RE sector.

Universal Charges This is a charge imposed on all electricity end-users as determined, fixed and approved by the ERC, pursuant to Section 34 of the EPIRA. It is remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM), a government-owned and controlled corporation created by Republic Act No. 9136. At present, the following are the imposed universal charges

Other universal charges not yet imposed to electric consumers