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Understanding Your Bill
PASS-THROUGH CHARGES are charges that ILPI has to collect for and pay to government and other service providers.
GENERATION CHARGE is for the cost of power generated and sold to ILPI by our supplier, presently the National Power Corporation(NPC). Change in cost of power will be charged or credited through the Automatic Generation Rate Adjustment Mechanism(AGRA)
TRANSMISSION CHARGE is for the delivery of electricity from power generating units to the distribution system of ILPI and which goes to the National Transmission Company(TransCO).
SYSTEM LOSS CHARGE represents recovery of cost of power lost due to technical and non-technical system losses with a maximum cap set by law.
FRANCHISE TAX is due to the government as follows: 0.75% on wheeling and captive market supply revenues as local franchise tax.
UNIVERSAL CHARGE is a non-bypassable charge remitted to the Power Sector Assets and Liabilities Management Corporation(PSALM), owned and controlled by the government, and created by Republic Act 9136. Now reflected in you ILPI bills are those for missionary electrification and environmental charges.
LIFELINE DISCOUNT/LIFELINE SUBSIDY is provided for in Section 73 of the EPIRA. All residential customers consuming less than 100 kwh in a given month will enjoy a Lifeline Discount to be applied to the total of the generation, transmission, distribution, supply, metering and system loss charges at these percentages: 50% for consumption below 40 kwh, 45% for 41-50 kwh, 40% for 51-60 kwh, 35% for 61-70 kwh, 30% for 71-80 kwh, 20% for 81-90 kwh and 10% for 91-100 kwh. The discounts will be funded by a Lifeline Subsidy charge of P0.816 per kwh, to be paid by all other customers.
INTERCLASS SUBSIDY. The unbundled rates also identify subsidies being enjoyed or provided by the various customer categories of ILPI. All residential customers will enjoy a subsidy of P0.2849 per kwh consumed. This subsidy will be funded by a charge to be paid by commercial and large industrial establishments. As provided in the EPIRA, these subsidies will be phased-out in three(3) years.
VALUE-ADDED TAX (VAT). Tax assessed equivalent to twelve percent (12%) of gross receipts derived from the sale or exchange of services.
DISTRIBUTION CHARGE. This is the cost of building, operating and maintaining the distribution system of ILPI, which brings power from high-voltage transmission grids, to commercial and industrial establishments, to residential end-users.
METERING CHARGE. This includes the cost of reading, operating, and maintaining of power metering facilities.
SUPPLY CHARGE. This includes the cost of rendering service of customers, such as billing, collection, customer assistance and associated services.