POWER RATES UP IN DEC
MANILA -- Manila Electric Company (Meralco) announced Monday that electricity rates this month will increase slightly, by PHP0.0902 per kilowatt hour (kWh) to be exact, thus, bringing the cost of power to PHP10.1803 per kWh.
Meralco attributed this month's modest power rate hike to higher generation charges as well as transmission, taxes, and other charges.
According to Meralco, higher Power Supply Agreements (PSAs) and Independent Power Producers (IPPs) have increased generation charges, which are up by PHP0.0578 per kWh to PHP5.3303 per kWh in December.
“Despite a stronger peso, PSA and IPP charges increased this month due to lower average plant dispatch. San Lorenzo Modules 50 and 60 were on scheduled maintenance outage from Oct. 28 to Nov. 7 and Oct. 28 and Nov. 8, respectively,” the company explained.
On the other hand, Wholesale Electricity Spot Market (WESM) rate declined by PHP1.0268 per kWh with the improvement in the power supply condition in Luzon and lower power demand last month.
But, only 20 percent of Meralco’s requirement will be sourced from WESM in December. Meralco will source 42 percent of its power requirements from PSAs and 38 percent from IPPs, it was explained.
The upward movement in power rates this month will roughly translate to an PHP18-increase in the total bill of households consuming 200 kWh.
Meanwhile, Laban Konsyumer Inc. (LKI) President Victorio Mario Dimagiba said in a text message that Meralco power rates could be lower by PHP0.90 per kWH if the Tax Reform for Acceleration and Inclusion (TRAIN) law did not impose a 12-percent value added tax on transmission charges and PHP50 excise tax on coal. (PNA)