Meralco rates down in May

MANILA, Philippines – If you belong to a typical household consuming 200 kilowatts per hour (kWh),  your overall electricity bill for May will go down by P140 ($3.14), as electricity bills this month went down by P0.70 per kWh mainly due to lower generation charge.

The generation charge is the bulk of your Manila Electric Company (Meralco) monthly bill. At P9.98 ($0.22) per kWh, this month’s rate is lower by P1.46 ($0.033) versus May 2014’s P 11.44 ($0.26) per kWh.

The reneration charge decreased by P0.60 ($0.013) per kWh from P5.41 ($0.12) per kWh in April to P4.81 ($0.11) per kWh this month. 

The decrease was driven by lower charges from the Wholesale Electricity Spot Market (WESM) and Independent Power Producers (IPPs), as well as a reduction in the National Power Corporation’s (NAPOCOR) Generation Rate Adjustment Mechanism (GRAM) collections.

Minimal effect

Power obtained from the WESM decreased by P4.19 ($0.093) per kWh due to less occurrences and shorter duration of power plant outages.  The Luzon grid remained on “normal” state throughout the period of the Malampaya shutdown.

The average cost of the IPPs was also lower by P0.75 ($0.017) per kWh due to the improved utilization level of the Quezon power plant and cheaper fuel prices obtained by the First Gas plants. 

The Malampaya shutdown effect was moderated by lower prices of condensate and natural gas in the April supply month versus March.  Malampaya natural gas underwent its quarterly repricing to reflect the lower cost of fuel, thus compared to the previous period, price of natural gas has been reduced by 19%.  

Average rates of plants under the Power Supply Agreements (PSAs) also decreased this month by P0.06 ($0.0013) per kWh. Finally, NAPOCOR’s collections of its GRAM also fell by P0.06 ($0.0013) per kWh.

The share of IPPs, PSAs, and WESM to Meralco’s total power requirements stood at 47%, 43%, and 10% respectively.

In addition to the generation charge, taxes and other charges registered reductions of P0.07 ($0.0016) and P0.08 ($0.0018) per kWh, respectively, both offsetting a P0.05 ($0.0011) per kWh increase in the transmission charge.

As always, Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges, because 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, supply, and metering charges accrue to Meralco.

Meralco’s distribution charge has not registered any adjustment and has remained at the same level for 10 months now or since July 2014. – Rappler.com

$1 = P44.64