The March 2014 bill of Manila Electric Company (Meralco) will drop by 45 centavos per kilowatthour (kWh) primarily due to the combination of lower generation charge and strengthening of the peso.
In a statement, the utility firm said generation charge of power sourced from the Wholesale Electric Spot Market (WESM) posted the highest drop at 51 centavos/kWh to Php4.90 “as demand remained moderate and no major power plant outages were reported.”
Power sourced by Meralco from the spot market represents only four percent of its requirements.
The second largest drop in generation charge was posted by power sourced from power plants that Meralco have power supply agreements (PSAs) with.
Price of power from this sourced fell 25 percent or by 33 centavos per kWh to Php5.21 per kWh , the cheapest among Meralco’s power sources.
Power sourced through PSA represents 53 percent of Meralco’s supply.
Relatively, capacity sourced from Independent Power Producers (IPPs) also posted a drop of 36 centavos per kWh to Php 5.63 per kWh. IPPs provided 43 percent of Meralco’s March 2014 supply.
Power sourced from the wholesale electric spot market (WESM),
“Contributing to the lower generation charge, too, was the strengthening of the peso during the February supply month,” it said.
The peso traded at the 44-level to a dollar in the second month this year, better than the 45-level in the previous month.
Aside from the lower generation charge, Meralco said other components of the electricity bill namely subsidy, system loss charge, and universal charge also posted an 11-centavo per kWh drop for bill covering the third month this year.
On the other hand, transmission charge for March slightly went up by 4 centavos per kWh but this was countered by the 5 centavos per kWh decline in value added tax (VAT) and local franchise tax (LFT).
“ The distribution charge remains unchanged,” Meralco added. PNA