Meralco electricity
bills down for the second straight month
Lowest generation charge
in 56 months
After
registering a reduction of PhP 0.70 per kilowatthour (kWh) in
overall rates last month, the Manila Electric Company (Meralco)
said that electricity rates will go down again this
month by PhP 0.58 per kWh. This brings the total
reduction to PhP 1.28 per kWh over the past two months. This month’s
reduction marks the fourth time this year that rates have gone down.
For
a typical household consuming 200 kWh, the overall
electricity bill will go down by PhP 116 compared
to last month. At PhP 9.40 per kWh, this month’s
overall rate is lower by PhP 1.21 compared
to June 2014’s PhP 10.61 per kWh.
Lower generation costs
from IPPs and PSAs
The
biggest reduction in the overall rates was due to the generation
charge which decreased by PhP 0.36 per kWh from PhP
4.81 per kWh in May to PhP 4.45 per kWh this month. This is its
lowest level since October 2010.
The
reduction was mainly driven by lower charges from plants
under the Independent Power Producers (IPPs) and Power
Supply Agreements (PSAs) due to lower fuel costs and higher
dispatch of the plants. After running for 19 days on alternate
liquid fuel (while the Malampaya natural gas facility was on
shutdown) during the April supply month, the natural gas power
plants, namely, Ilijan, First Gas-Sta. Rita, and First Gas-San
Lorenzo, operated on less expensive Malampaya natural gas this May.
IPPs and PSAs registered
reductions of PhP 0.67 and PhP 0.59 per kWh,
respectively.
The
reductions in IPP and PSA rates more than offset
a PhP 2.85 per kWh increase in charges from the
Wholesale Electricity Spot Market (WESM). It will be recalled
that WESM exhibited noticeable price spikes particularly
beginning the week of May 11, as a number of plants went on forced
outages or reduced their output. The high WESM clearing prices,
which at times approached PhP 30 per kWh, were sustained for the rest
of the supply month. According to the Philippine Electricity Market
Corp. (PEMC), the operator of the WESM, the Secondary Price Cap was
not triggered last May.
The
share of IPPs, PSAs, and WESM to Meralco’s total
power requirements stood at 45, 48, and 7 percent, respectively.
Adjustments in other
bill components
In
addition to the generation charge, transmission charge also
registered a reduction of PhP 0.09 per kWh. Taxes and
other charges also went down by PhP 0.06 and PhP
0.07 per kWh, respectively.
Meralco
has consistently reiterated that it does not earn from the generation
and transmission charges as these are pass-through costs. Payment for
the generation charge goes to the power suppliers, while payment
for the transmission charge goes to the National Grid Corporation of
the Philippines (NGCP). Of the total bill, only the distribution
charge accrues to Meralco.
Meralco’s
distribution charge has not registered any adjustment or change and
has remained at the same level for almost a year or since
July 2014 when it reflected a lower rate compared to June of the same
year.
Meralco offers
free trimming service
In
time for the upcoming rainy season, Meralco advises its customers
to report cases of tree branches near or touching power lines as
these may cause localized power interruptions. They may call
Meralco’s Call Center at 16211 to avail of free tree-trimming
service.
For other
concerns or queries, customers may visit www.meralco.com.ph. They
may also access Meralco’s Facebook page (www.facebook.com/meralco)
and Twitter account (@meralco).
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