The Manila Electric Co. (Meralco) on Tuesday announced that the residential rate for a typical household will go down this September by P0.0451 per kilowatthour (kWh).
This month’s overall rate will bring down the rate of P8.55 per kWh in August by P0.09 per kWh, to P8.46 per kWh
This translates to a reduction of around P9 in the electricity bill of a household with monthly consumption of 200 kWh.
The reduction results from downward movement in the transmission charge, which more than offsets a higher generation charge.
Reduced operating hours of Independent Power Producers or IPPs caused the generation charge increase.
This month, there was an increase in the generation charge, which is P0.0879 per kWh higher than last month’s P3.85 per kWh.
At P3.94 per kWh, the generation charge is P0.19 per kWh lower compared with September 2015’s P4.13 per kWh.
Cost of power from the IPPs increased by P0.17 per kWh.
This stemmed from reduction in the operating hours of Quezon Power Philippines Limited Co., which went on forced outage from August 5 to August 8, and First-Gas Santa Rita, with Modules 10 and 20 under scheduled maintenance from August 13 to August 14 and the whole August supply month, respectively.
The share of the IPPs to Meralco’s total requirements for the August supply month stood at 35.6 percent.
Overall charges from the Wholesale Electricity Spot Market (WESM) decreased by P0.32 per kWh.
Spot prices went up on the heels of the seven instances of yellow alert and three instances of red alert in the August supply month, versus just one instance of yellow alert during the July supply month.
This increase in spot prices, however, was more than enough to offset the reduction of the effective rate of line rentals and other charges, as the share of WESM purchases went up to 20.6 percent, from 9.5 percent the previous month.
The cost of power sourced from plants under the Power Supply Agreements (PSAs) was almost at the same level as last month, with only a slight decrease of P0.02 per kWh. The share of PSAs stood at 43.2 percent.