• 04/23/2019
  • 12:59 PM
League Online News


MANILA, PHILIPPINES, 7TH November 2018 – The Manila Electric Company (MERALCO) announced today that after two straight months of reduction last September and October totaling P0.25 per kWh, overall electricity rates slightly increased to P10.0901 per kWh this month from last month’s P9.9766 per kWh. The slight upward adjustment of P0.1135 per kWh, mainly due to higher WESM charges following an uptick in demand and an increase in Malampaya gas prices for the period, will mean an increase of around P23 in the total bill of a typical household consuming 200kWh.


Since April this year, electricity rates registered a net decrease of P0.46 per kWh.


Higher WESM charges bring up the generation charge


From P5.1908 per kWh last month, the generation charge for November went up to P5.2725 per kWh, an increase of P0.0817 per kWh.


The increase in the generation charge is mainly the result of a P1.3545 per kWh increase in charges from the Wholesale Electricity Spot Market (WESM).  WESM charges went up due to higher power demand in Luzon resulting from warmer temperature in October. The share of WESM purchases to Meralco’s total requirement this month was 16.6%.


Meanwhile, the cost of power from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs) decreased by P0.1450 per kWh and P0.5611 per kWh, respectively. A stronger peso offset an increase due to higher Malampaya natural gas prices as a result of the quarterly repricing to reflect recent movement of crude oil prices in the world market.  Power plants using Malampaya natural gas–i.e., First Gas-Sta. Rita, First Gas-San Lorenzo, First NatGas-San Gabriel, and South Premiere-Ilijan–provided 61% of Meralco’s supply needs.


The share of IPP and PSA purchases to Meralco’s total requirement this month was 42.6% and 40.8%, respectively.


Transmission, Taxes and Other charges increase


Transmission charge of residential customers increased by P0.0021 per kWh due to an increase in NGCP’s ancillary service charges. Meanwhile, taxes and other charges went up by PhP0.0297 per kWh this month.


Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 40 months, after these registered reductions in July 2015. 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 FIT-All rate are remitted to the government.


Meralco provides energy efficiency tips for customers


Meralco once again encourages its customers to continue practicing energy efficiency initiatives to help manage their electricity consumption. These include everyday household tips that may help save energy, such as: (i) unplugging appliances when not in use to avoid “phantom load”, (ii) using the aircon at mid-setting or at 25 degrees Celsius for maximum efficiency, (iii) using a power board or strip which can supply power to several appliances at once and allows a user to conveniently turn them off simultaneously with just one switch, and (iv) maximizing natural light during daytime and keeping appliances well maintained to ensure optimal performance. For more helpful tips, customers may visit Meralco’s website at www.meralco.com.ph or its social media accounts, twitter @meralco and facebook at www.facebook.com/meralco.

Get the latest local government news daily from the most trusted sources. Be on the loop with current events happening in Luzon, Visayas, Mindanao and Metro Manila