The Negros Oriental Electric Cooperative 1 (NORECO 1) announced a significant increase in electricity rates for April 2026, with residential customers facing a P1.2389 per kilowatt-hour (kWh) hike that brings the total rate to P13.5494 per kWh, up from P12.3105 per kWh in March 2026.
The rate adjustment affects all customer categories served by NORECO 1, which covers the northern portion of Negros Oriental including Bais City, Mabinay, Bindoy, Guihulngan, and Vallehermoso. The cooperative cited increased generation charges from power suppliers, particularly the Wholesale Electricity Spot Market (WESM), and higher transmission charges from the National Grid Corporation of the Philippines (NGCP) as the primary drivers of the rate increase.
Comprehensive Rate Increases Across All Customer Classes
The April 2026 rate adjustments impact various customer categories differently, though all face substantial increases. Residential customers and those under the Barangay Power Association (BAPA) category experienced the full P1.2389 increase, bringing their rates to P13.5494 per kWh from the previous P12.3105 per kWh.
Commercial and industrial customers served through low voltage connections face rates of P12.2162 per kWh, representing an increase of P1.2389 from March's P10.9773 per kWh. This same rate structure applies to public buildings and street lighting systems throughout NORECO 1's service area.
Higher voltage customers, typically larger industrial and commercial establishments, will pay P9.5361 per kWh in April 2026, reflecting an increase of P0.8434 from March's rate of P8.6927 per kWh. While this represents a smaller absolute increase compared to other customer categories, it still constitutes a significant cost escalation for major power consumers in the region.
Detailed Breakdown of April 2026 Electricity Charges
NORECO 1 provided a comprehensive breakdown of the components that make up the April 2026 residential rate of P13.5494 per kWh. Generation charges, sourced from various power suppliers including Green Core Geothermal Inc. (GCGI), Power Contractors and Pioneer Corp. (PCPC), First Dumaguete Coal-fired Power Plant Corp. (FDCMPC), and the WESM, account for P6.9449 per kWh of the total rate.
Transmission charges levied by the National Grid Corporation of the Philippines represent P1.8409 per kWh, reflecting the cost of moving electricity across the national power grid to reach NORECO 1's distribution system. The cooperative's own distribution charge amounts to P1.9396 per kWh, covering the costs of maintaining and operating the local electrical infrastructure that delivers power directly to customers' premises.
Other charges, including government taxes, various adjustments, and regulatory fees, contribute P2.8240 per kWh to the total rate structure. These charges encompass value-added tax, franchise tax, and other government-mandated fees that utilities must collect on behalf of various agencies.
WESM and NGCP Charges Drive Rate Escalation
According to NORECO 1's announcement, the primary factors behind April's rate increase stem from elevated costs in the wholesale electricity market and transmission system. The Wholesale Electricity Spot Market, which serves as the trading floor for electricity in the Philippines, has experienced price volatility that directly impacts distribution utilities like NORECO 1.
The cooperative indicated that both generation charges from WESM and transmission charges from NGCP increased during the billing period, creating upward pressure on consumer rates. These market-driven cost increases reflect broader trends in the Philippine electricity sector, where demand patterns, fuel costs, and grid maintenance requirements influence pricing structures.
NORECO 1 operates as a distribution utility that purchases electricity from various sources and delivers it to end-users through its distribution network. As such, the cooperative has limited control over generation and transmission costs, which are largely determined by market forces and regulatory decisions at the national level.
Extended Service Area Coverage and Customer Support
NORECO 1 serves multiple municipalities and cities across northern Negros Oriental, providing electricity to thousands of residential, commercial, and industrial customers. The cooperative maintains dedicated customer service hotlines for different areas within its franchise territory to ensure responsive support for power-related concerns.
Customers in Bais City can reach NORECO 1 through (0915) 406-5835 or (035) 402-3761, while those in Mabinay can call (0917) 123-4349 or (0968) 440-3830. Bindoy area customers have access to (0909) 165-6011, and Guihulngan residents can use (0969) 170-2952 or (0905) 644-9649. Vallehermoso customers can contact the cooperative at (0947) 203-6913 or (0947) 179-5720.
These 24-hour hotlines provide customers with immediate assistance for power outages, billing inquiries, and other electrical service issues. The cooperative also maintains active communication channels through its Facebook page at facebook.com/noreco1, its website at www.noreco1.com, and email at noreco1@yahoo.com.
Impact on Household and Business Budgets
The P1.2389 per kWh increase represents approximately a 10% rise in electricity costs for residential customers, potentially adding hundreds of pesos to monthly utility bills depending on consumption levels. A typical household consuming 300 kWh per month would see their electricity bill increase by approximately P371.67 due to the rate adjustment.
Commercial establishments and industrial facilities face proportionally larger cost increases, with the rate hikes potentially affecting operational expenses and pricing strategies. Small and medium enterprises that rely heavily on electrical equipment may need to reassess their energy consumption patterns or consider efficiency improvements to manage increased costs.
The timing of the rate increase coincides with the summer season, when electricity consumption typically peaks due to increased air conditioning usage and higher ambient temperatures. This seasonal factor may compound the financial impact on consumers already dealing with elevated electricity rates.
Photo credit: Photo courtesy of NORECO 1