MANILA, PHILIPPINES, 8th April 2019 – The Manila Electric Company (MERALCO) announced today that overall electricity rates inched up to P10.5594 per kWh this month from last month’s P10.4961 per kWh. The upward adjustment of P0.0633 per kWh will mean a slight increase of around P13 in the total bill of a typical household consuming 200kWh.
Higher WESM charges and Peso Depreciation bring up the generation charge
From P5.5973 per kWh last month, generation charge for April slightly went up to P5.6322 per kWh, an increase of P0.0349 per kWh.
The generation charge increase is primarily due to higher charges from the Wholesale Electricity Spot Market (WESM) and the weakening of the Peso against US Dollar.
The P1.2815 per kWh increase in WESM charges this April was brought about by tighter supply conditions in the Luzon grid. NGCP placed the grid under Yellow Alert on March 5, 7 and 8, 2019 due to insufficient operating reserves brought about by limited capability of several power plants because of outages and de-ration. The share of WESM to Meralco’s total requirement this month went down to 10.4%.
Cost of power from the Independent Power Producers (IPPs) also increased by P0.0881 per kWh due to weakening of Peso against US Dollar. About 95% of IPP charges are dollar-denominated. Meanwhile, charges from the Power Supply Agreements (PSAs) went down by P0.2796 per kWh. IPPs and PSAs provided 41.4% and 48.2% of Meralco’s supply needs, respectively.
Other charges movements
As approved by the Energy Regulatory Commission (ERC), the Feed-In Tariff Allowance (FIT-All) was decreased by P0.0337 per kWh, while Universal Charge-Stranded Debts was adjusted by P0.0163 per kWh, resulting in a net reduction of P0.0174 per kWh. Meanwhile, transmission charge, taxes, and other charges to residential customers increased by P0.0458 per kWh.
Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 45 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
As summer arrives, 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