AT least 41 centavos per kilowatt hour (kWh) will be slashed in the November billing of Manila Electric Co. (Meralco) consumers.
This translates to a decrease of around P82 in the bill of a typical household consuming 200 kWh.
Meralco attributed the downward adjustment principally to the reduction in generation charge.
The lower generation cost was attributed, in turn, to fewer and forced plant outages and also to normal Malampaya operations.
Generation charge decreased by 245 centavos per kWh in November, bringing it to P5.11 per kWh, the lowest level for the year todate.
“This month’s decrease was primarily due to the improved availability of power plants and lower cost of fuel for the supply month of October,” Meralco said in a statement.
The Malampaya gas facility, it added, also did not experience any supply restriction.
Last month’s generation costs increased mainly due to a cumulative five-day Malampaya restriction (September 8-11 and September 21 to 23), which reduced the fuel supply to Ilijan and forced First Gas plants to use more expensive alternative fuel.
With fewer simultaneous forced outages of power plants, secondary price cap at the Wholesale Electricity Spot Market (WESM) was not triggered during the October supply month and WESM charges registered a reduction of P25.61 per kWh.
Charges from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs), meanwhile, registered reductions of P0.54 per kWh and P0.03 per kWh, respectively.
In terms of share to Meralco’s total power requirements for the October supply month, WESM accounted for 5 percent, IPPs (47 percent) and PSAs (48 percent).
Contributing also to the overall downward adjustment in the bills to households is the P.083 decrease in transmission charge because of lower ancillary service charges. Taxes, meanwhile, registered a P0.056 decrease per kWh.
There was also a cumulative decrease of P0.026 per kWh in subsidies and the system loss charge.