For more than a year now, PENELCO has been sourcing power from San Miguel Energy Corporation (SMEC) and Wholesale Electricity Spot Market (WESM). Bataan 2020 also started supplying power to PENELCO last September 2010.

For the month of December 2010, the table below shows the percentage of power purchased from its suppliers:

Prices of electricity in the spot market dropped due to the cold weather and the hydro power plants are running in full capacity.

For PENELCO, the average WESM rate is Php6.9480/kWh, however due to the conditions and nomination protocol with SMEC, WESM rate was further reduced to Php3.6071/kWh inclusive of VAT and other WESM charges. Also, Bataan 2020 is charging lower rates (Php3.6400/kWh) as compared to the other generators in the market.

With this, the generation rate applied to all customer class has decreased to only Php4.0417/kWh ( January 2011 billing) from PhP4.1324 (December 2010 billing).