Meralco hikes rates in August

Rappler.com

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Households with a monthly average consumption of 200 kWh should expect a P62 increase in their bill

RATE HIKE. People arrive at the office of Meralco, the country's largest power distributor, to make payments. File photo by Agence France-Presse / JAY DIRECTO

MANILA, Philippines – Electricity rates this month will increase by P0.31 ($0.007*) per kilowatt hour (kWh), or about P62 ($1.41) for households with a monthly average consumption of 200 kWh, after generation and universal charges, lifeline subsidy, and taxes all went up during the July supply month.

The Manila Electric Company (Meralco) said Friday, August 8, that the generation charge for August went up by P0.23 ($0.005) per kWh, from P5.41 per kWh ($0.12) to P5.64 ($0.13) per kWh.

Largely contributing to the hike were the WESM (Wholesale Electricity Spot Market) billing adjustments from prior periods which accounted for around P0.17 ($0.004) per kWh and an increase of P0.06 ($0.0014) per kWh in the average cost of contracted power supply sourced from Power Supply Agreements (PSAs).

The increase in August power rates comes after a cumulative reduction of P0.86 ($0.020) per kWh in May. In July, Meralco also hiked rates.

In terms of share to Meralco’s total power requirements for the July supply month, PSAs, Independent Power Producers (IPPs), and WESM contributed 53%, 40%, and 7%, respectively.

Meanwhile, universal charge increased by P0.04 ($0.0009) per kWh, as collection for the previously deferred Universal Charge-Missionary Electrification resumed this month. Taxes and subsidies, meanwhile, registered increases of P0.02 ($0.0005) and P0.03 ($0.007) per kWh, respectively.

Meralco’s distribution charge remained unchanged, while the transmission charge went down by P0.01 ($0.0002) per kWh, due to the lower ancillary charges.

Meralco reiterated that it does not earn from the pass-through charges, such as generation and transmission, among other bill components.

Payment for the generation charge goes to the power suppliers such as the plants selling to Meralco through the WESM and under the PSAs and IPPs. Payment for the transmission charge, meanwhile, goes to the National Grid Corporation of the Philippines (NGCP).

Of the total bill, only the distribution, supply, and metering charges accrue to Meralco.

Power supply shortfall

There was a shortfall in power supply due to forced and scheduled outages of various plants, aggravated by the impact of Typhoon Glenda (Rammasun). The damages caused by the typhoon to some transmission and generating facilities limited the output of a number of power plants located in Southern Luzon. This led to the lower dispatch of the affected plants.

For the July supply month, a number of power plant units pushed through with their scheduled outages, including Pagbilao 1 and Ilijan 1 & 2.

Further depleting supply of power were 20 new forced outages of several power plant units of various durations during the month such as:

  • Sta Rita units 10, 20 & 30
  • Calaca 1 & 2
  • GN Power 1 & 2
  • Sual 1 & 2
  • Ilijan 1 & 2
  • Pagbilao 1 & 2
  • Masinloc 1 & 2
  • San Lorenzo units 50 & 60
  • Therma Mobile 2 & 4
  • Quezon Power
  • Sta Rita 40 (in a continued forced outage)

Energy Secretary Carlos Jericho Petilla warned that blackouts – running longer hours and lasting for weeks – are expected to hit Luzon in the summer of 2015 unless the Aquino administration takes crucial steps to avert them, such as declaring an emergency in the power sector.

Petilla had earlier endorsed what he said was the best and fastest way the government could address this problem: for the President to declare a power emergency and invoke his powers under the EPIRA of 2001.

EPIRA prohibits the government from putting up power plants. However, Section 71 of the law states that the President, upon determination of an imminent shortage of supply of electricity, may ask Congress for authority to establish additional generating capacity under approved terms and conditions. (READ: Power emergency: What it means) – Rappler.com

 *$1 =P44.07

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