Meralco rates decline in October

MANILA, Philippines – A P0.14 per kilowatt hour (kWh) drop in generation charge – the largest component of your electric bill – led to an overall decline in the October billing of theManila Electric Company (Meralco) by P0.13 per kWh, the utility firm announced Wednesday, October 7.

Thus, for a household consuming 200 kWh, the P0.13 per kWh reduction is equivalent to a P26 ($0.56) decline in overall electricity bills this month.

At P8.42 ($0.18) per kWh, this month’s overall rate is lower by P2.05 ($0.04) versus October 2014’s P10.47 ($0.23) per kWh. Power rates have declined for the past 6 consecutive months, for a total reduction of P2.26 ($0.049) per kWh.

Generation charge down

The reduction in the overall rates was primarily due to the generation charge, which decreased by P0.14 per kWh from last month.  At P3.996 ($0.087) per kWh, this October’s generation charge is also the lowest since January 2010. Payment for the generation charge goes to the power suppliers.

Charges from the Wholesale Electricity Spot Market (WESM) registered a reduction of P3.71 ($0.08) per kWh due to higher plant availability in September as compared to August.

The average rate of the plants under the Independent Power Producers (IPPs) though increased by P0.08 per kWh. Plants under the Power Supply Agreements (PSAs) also registered an increase of  P0.18 per kWh due to the lower dispatch of some power plants like Ilijan.

Contributing also to the increase in IPP and PSA rates was their unusually low rates in the August supply month as they included adjustments from prior months.

The share of PSAs, IPPs, and WESM to Meralco’s total power requirements stood at 47%, 47%, and 6%, respectively.

Other charges, such as system loss and subsidies, decreased by P0.01 per kWh following the decrease in generation charge.

Transmission charge registered an increase of P0.01 per kWh due to the higher ancillary service charges. There was also an increase of P0.01 per kWh in taxes. Payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).

Meralco’s distribution, supply, and metering charges remain unchanged after a reduction in July.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission rates. – Rappler.com

$1 = P46.20