Meralco to raise power rates this month

4

Christmas may not be merry for customers of the Manila Electric Co. (Meralco) after the utility announced on Wednesday an increase in electricity rates effective this month.

Advertisements

The hike will be P0.055 per kilowatt hour, equivalent to P11 for a typical household consuming 200 kWh, Meralco said.

The utility company said the move to raise the rates came on the back of an increase in generation charge of P0.046 per kWh from last month imposed by power generating companies.

Charges from the Wholesale Electricity Spot Market (WESM) also rose by P0.535 per kWh due to lower generation supply provided by hydro plants.

In addition to higher generation charges, transmission charges registered an increase of P0.007 per kWh because of higher ancillary service charges.

There was also a combined increase of P0.002 per kWh in taxes and other charges (system loss and subsidies) after the hikes in the generation and transmission charges.

Meralco’s distribution, supply and metering charges remain unchanged after a reduction last July.

The power distributor cited fewer forced outages in November compared with October.
Plants under the Power Supply Agreements (PSAs) also registered a slight increase of P0.009 per kWh, primarily due to a lower dispatch by the Calaca plant and an increase in fuel cost at the Ilijan plant, driven by the weakening of the peso against the dollar.

Meralco, however, said the December rate is almost 13 percent lower compared with the rate a year ago.

At P8.605 kWh, this month’s overall rate is lower by P1.260 per kWh, compared with P9.865 per kWh a year earlier.

The power firm pointed out that this month’s overall rate is the fourth lowest since January 2010. The lower rates this 2015 were attributed to successive reductions in the generation charge starting May this year, coupled with a reduction in the distribution charge of Meralco in July.

The generation charge will end 2015 at P4.130 per kWh, which is P0.807 per kWh lower than the December 2014 charge and the third lowest since January 2010.

The average rate of the plants under the Independent Power Producers (IPPs), meanwhile, dropped by P0.005 per kWh. This was driven by the higher dispatch of Santa Rita plant in the absence of outages in November.

The plant’s Module 30 had a five-day scheduled outage in October.

The share of PSAs, IPPs and WESM in Meralco’s total power requirements stood at 49.9 percent, 44.4 percent, and 5.7 percent, respectively.

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 Corp. of the Philippines.

Share.
loading...
Loading...

Please follow our commenting guidelines.

4 Comments

  1. This is what we Filipino people got when we put Cory Aquino in power. I mean, when our forefathers put Cory Aquino in power and revered the Yellows onward. During the Marcos period, Meralco is under the government. Meralco was sold by the Lopezes to the government. When Cory rose to power, she gave it for free to the Lopezes. The crocodile clan since has been milking the people by increasing the rate of electricity and by illegally imposing fees on their loss of electricity due to illegal connection. I was able to watch a Lopez denying the veracity of the report that they sold to the Marcos government the Meralco during that time but hell, should we trust these crocodiles forever? It is time that we demand our property. Meralco is the people’s property stolen by the Lopezes with approval from the yellow goverment beginning from Cory to PNoy.

  2. Who said not fully owned by Filipinos?? the lopezes and other their corraborator with the businessman para hindi masabi na kanila ang meralco. ginagawa nilang front ang ibang mga kaibigan nila sa business na ito. Iyong kapatid nilang isang lopezes bumibili ng power sa NPC at tapos ibebenta namn nya sa kapatid niyang lopezes na mayari ng meralco. it becomes 3 parties, kaya niluluto tayo ng mga lopezes sa sarili nating mantika. Aside from they owned also maynilad… They are controlling the basic needs of our people. They controlled the media which is part of setting the minds of filipino people who were not highly educated…Time will come to the end of this greedy businessman in our country.

  3. The usual perfect timing for price hike, since most consumers were using more energy for their Christmas decors

    And then, their huge Christmas lights in Ortigas office will be charged as well as “system loss charge”

  4. Rosauro Feliciano on

    Because Meralco is not fully owned by Filipinos as it is a conglomerated company, its management does not care for the suffering public to raise electricity bill as it coincides on this holiday season. Who believes all these crap allegations of Meralco to justify its increase when the crude oil is now hovering at the level of US$40 a barrel from over US$100 a year ago?