• Power rates to go up this month

    0

    ELECTRICITY rates will go up by 84 centavos per kilowatt-hour (kWh) this month because of higher generation charge and other fees.

    The Manila Electric Co. (Meralco) on Tuesday said it had to adjust its rates because the generation charge went up by 52 centavos per kWh. It added that transmission charge, taxes and other charges also increased.

    The power company said the generation charge went up mainly because of the P1 per kWh increase in the rates of generation companies under the Power Supply Agreement (PSA).

    Generation costs also went up because of lower dispatch of most generation companies.
    This could, in part, be attributed to the lower demand in January.

    Higher incidence of scheduled and forced outages of generating plants last month also had an upward pressure on prices at Wholesale Electricity Spot Market (WESM).

    The higher trading prices in the WESM, however, were offset by a reduction of billing adjustments from prior months, so that WESM charges registered a net reduction of P1.15 per kWh.

    In addition to the generation charge, the transmission charge also went up by 12 centavos per kWh because of an increase in both the wheeling and ancillary charge components of the National Grid Corporation of the Philippines’ (NGCP) billing.

    Taxes also went up by around eight centavos per kWh, while other charges (system loss charge and lifeline subsidy) increased by eight centavos per kWh.

    The distribution charge, however, did not register any movement.

    Moreover, a new line item, called FIT-All (Renewable), was also added to the bill beginning this month.

    A four-centavo per kWh FIT-All charge will be billed to all on-grid electricity consumers nationwide in support of the government’s Feed-in-Tariff Program.

    This charge will form part of the fund that the National Transmission Corporation (TransCo) will use to pay the FIT-eligible Renewable Energy (RE) developers for the energy they will produce.

    But Meralco said that even if power rates now stand at P10.51 per kWh, they are still lower compared to the rates of P11.04 per kWh in February 2014.

    “This month’s rates are likewise lower than the average for 2014, which was P10.72 per kWh,” it added.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.