Definition of Terms

Generation Charge: Payment for the electricity generated by

NAPOCOR/PPGI/Delta P/DMCI and distributed by PALECO among its
member consumers.

Distribution Charge: This is used by PALECO to maintain and

repair its facilities used to provide service to its member-consumers.

Supply System Charge: This cost is for the services provided by

PALECO to its member-consumers such as billing, collection,
customer assistance and many others.

Metering System Charge: This cost is for the maintenance of

electric meter performed by PALECO.

System Loss Charge: Cost of lost electricity due to technical and

non-technical losses as stipulated in RA No. 7832.

PSALM Charge: This amount is for missionary electrification and

environmental charges forwarded to Power Sector Assets &
Liabilities Management (PSALM). This is used to provide electricity to
island provinces and remote areas including our province. It is also
used to protect our environment such as water shed areas.

Transmission Charge: Payment for the delivery of electricity from

the NAPOCOR/PPGI/Delta P/DMCI power plant to PALECO distribution
lines thru the high voltage transmission grids.

Other Charges:

This includes the following:

Loan Condonation

Power Act Rate Reduction

Lifeline Rate (Discount), Subsidy: Provided as aid to residential

consumers for consuming below 35 kWh and has no capacity
to pay the entire amount of consumed electricity.

VAT

Others:

Inter-class Cross Subsidy (ICCS)

Reinstated Prompt Payment Discount (RPPD)