CUSTOMERS of Manila Electric Co. (Meralco) will pay less for November as a result of a downward movement in the generation charge.
This is the fourth straight month of reduction in the overall residential rate.
Meralco, the country’s largest power distributor, announced on Monday that the rate for a typical household will go down this month by P0.0781 per kilowatt-hour, thereby bringing it down to P8.26 per kWh, the lowest since January 2010.
This month’s decrease translates to a reduction of around P16 in the electricity bill of a household with monthly consumption of 200 kWh.
This month’s overall rate is lower by P0.29 per kWh compared to November 2015’s PP8.55 per kWh.
This month, there was a decrease in the generation charge, which is P0.0502 per kWh lower than last month’s P3.8938 per kWh.
At P3.8436 per kWh, the generation charge is around P0.24 per kWh lower compared to November 2015’s P4.08 per kWh.
The decrease resulted mainly from lower charges from the Wholesale Electricity Spot Market (WESM).
This offsets increases in Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) costs brought about by higher coal and natural gas prices and low dispatch.
Overall charges from the WESM decreased by P0.2756 per kWh.
The share of WESM purchases to Meralco’s total requirements went up from 16.1 percent to 20.1 percent.
Meanwhile, the cost of power sourced from plants under the PSAs increased by P0.0164 per kWh primarily because of higher fuel costs.
Coal prices in the region continued to rise, from $67.41 per metric ton (MT) in August 2016 to $72.70 in September.
The share of PSAs stood at 42.5 percent.
Cost of power from the IPPs also increased by P0.0549 per kWh, primarily because of scheduled outage and lower dispatch of San Lorenzo, and the higher cost of natural gas following its quarterly repricing.
The share of the IPPs to Meralco’s total requirements for the October supply month was at 37.3 percent.
There was also a decrease in the transmission charge by P0.0177 per kWh, mainly as a result of reduction in the ancillary charge differential that the National Grid Corporation of the Philippines (NGCP) began to collect from its Luzon customers in June.
Taxes and other charges also decreased by a combined amount of around P0.0102 per kWh.
Meralco’s distribution, supply and metering charges, meanwhile, have remained unchanged for 16 months, after these registered reductions in July 2015.
The utility reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.
Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP.