MERALCO: POWER RATES INCREASE, EXPECT ADDITIONAL PHP18 PER KWH
MANILA, PHILIPPINES – The Manila Electric Company (MERALCO) announced that overall electricity rates increased to P10.4961 per kWh this month from last month’s P10.4067 per kWh. The upward adjustment of P0.0894 per kWh will mean an increase of around P18 in the total bill of a typical household consuming 200kWh.
MERALCO noted the decrease of power rates last month. From P5.8939 per kWh last month, generation charge for March went down to P5.5973 per kWh, a decrease of P0.2966 per kWh.
The generation charge decrease is primarily due to lower charges from plants under Power Supply Agreements (PSAs), the electricity provider said.
The P1.0768 per kWh decrease in PSA charges for this month was due to strengthening of the Peso against the US Dollar, lower fuel prices and higher average plant dispatch. As Masinloc Unit 1 and San Gabriel returned to normal operations in February following the scheduled maintenance outage in January. The share of PSAs to Meralco’s total requirement this month was at 48%.
Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) went up by P0.5178 per kWh due to tighter supply conditions in Luzon with higher demand for power and more frequent plant outages this month. Cost of power from the Independent Power Producers (IPPs) was also higher by P0.0549 per kWh due to lower average plant dispatch. Quezon Power was on scheduled maintenance outage from January 18 to February 8, 2019. WESM and IPPs provided 12% and 40% of Meralco’s supply needs, respectively.
While transmission charge of residential customers went up by PhP0.0288 per kWh this month due to higher NGCP Ancillary Service Charges.
Taxes and other charges also increased by PhP0.3572 mainly due to the completion of the Universal Charge-Stranded Contract Costs (UC-SCC) refund last month.
MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 44 months or more than four years. 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 NGCP. Taxes and other public policy charges like the Universal Charge and FIT-All rate are remitted to the government.
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