Meralco power rates up by 13 centavos/kWh


THE Manila Electric Company (Meralco) announced on Friday that October electricity bills of consumers increased by 13 centavos per kilowatt-hour (kWh) because of an increase in generation and transmission charges, including taxes and other charges.

The power company said it raised its billing rates by 13 centavos per kWh or P26 for a typical household consuming 200 kWh a month.

Meralco noted that the total bill rate for the month at P8.55 per kWh is lower than the rate in November last year.

It holds the power distribution franchise for 22 cities and 89 municipalities, including the whole of Metro Manila, Batangas (Batangas City, San Pascual and Santo Tomas), Bulacan, Cavite, Rizal, parts of Laguna and Lucena City in Quezon.

Generation charge

The generation charge, which had an increase of 9 centavos per kWh from last month, was affected by outages of some power plants.

It prompted Meralco to purchase capacity from the electricity-market Wholesale Electricity Spot Market (WESM), which increased by P1.19 per kWh.

Prices from independent power producers (IPPs) also saw an increase of 10 centavos per kWh because of the lower capacity dispatch of the power plants. Meralco noted that the increase in rates was partly offset by low natural gas prices.

Power plants, which were contracted through power supply agreements (PSAs), also saw a decrease of 2 centavos per kWh because of higher power dispatch from Sual.

Meralco bared in its October 2015 generation costs from its website that Therma Mobile Inc. (TMO) had a lower dispatch of capacity at 13.3 percent, while South Premiere Power Corp. (SPPC) had supplied capacity at a rate of 73.7 percent.

For last month, it sourced its capacity from PSAs at 49.5 percent, IPPs at 45.6 percent and WESM at 4.8 percent.

Transmission charge

For the transmission charge, the line item charge had an increase of 2 centavos per kWh because of higher ancillary service charges.

Aside from the two charges, taxes and other charges also reflected the increases, which
had a total increase of 2 centavos per kWh.

The distribution utility also stressed its distribution charge remains the same after the reduction last July.

Meralco 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 National Grid Corporation of the Philippines (NGCP), it said.

Last month, the total reduction for the year, from six months of decreases, amounted to P2.26 per kWh.


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