Lower Meralco bills by February
MANILA, Philippines - Manila Electric Co. (Meralco) customers will see lower electricity bills by February due to the expected reduction in the generation charge following new supply deals signed by the utility firm.
Alfred Panlilio, Meralco SVP for Customer Retail Services and Corporate Communications, said the generation charge may go down by around 19 centavos per kilowatt-hour (kWh) because of 5 new power supply agreements (PSAs) Meralco signed with generation companies.
"We've signed up 5 PSAs that have been approved by the ERC (Energy Regulatory Commission) and we're very grateful for the approval of the ERC. Our estimate is at least for the generation charge, that will come down 19 centavos per kilowatt-hour. The generation charge is 65% of the average bill," Panlilio said.
The generation charge is a pass-through charge that accrues to Meralco's power suppliers.
Meralco sources its power from the National Power Corp. (Napocor), the electricity spot market, and independent power producers.
However, Panlilio said Meralco's transition supply contract with Napocor expired on Dec. 26, 2012.
“Meralco exerted extensive efforts to negotiate for the PSAs [to] avert possible price shock in the light of the expiration of the company’s [contract] with the Napocor,” he said.
Meralco signed the PSAs with:
- Sem-Calaca Power Corp.
- South Premiere Power Corp.
- San Miguel Energy Corp.
- Masinloc Power Partners Co. Ltd.
- Therma Luzon Inc.
Meralco also said the ERC approved the company's Peak/Off-Peak (POP) program, formerly known as Time-of-Use, for large corporate customers.
The program will start on Feb. 1, 2013. Many firms signed up for the program including cement company La Farge and electronics firm TDK.
Meralco created POP for businesses and big residential customers. Prices are adjusted depending on the time periods when energy is consumed.
Under the program, electricity rates will be higher during peak hours, and lower during off-peak hours.
Peak hours run from 8am to 9pm, Mondays to Saturdays, while off-peak hours are 9pm to 8am (the next day).
Sundays are considred off-peak, except the hours from 6pm to 8pm. - Rappler.com