Manila Electric Co., the country’s biggest power retailer, said its generation charge in October will decline following lower rates from so-called independent power producers.
Meralco said the IPP rates dropped by an average of P0.12 per kilowatt-hour, with Quezon Power Philippines Ltd. registering the biggest reduction of P0.26 per kWh.
It said the generation charge of the Sta. Rita and San Lorenzo natural gas power plants controlled by First Gas Power Corp. declined by P0.09 and P0.065 per kWh, respectively. Meralco’s other IPP is National Power Corp.
“The reduction in IPP rates is largely due to the higher capacity factor for all three IPPs, resulting in lower fixed cost per kWh. For the supply month of September, the capacity factor for Quezon Power, Sta. Rita and San Lorenzo reached 96.7 percent, 92.29 percent and 96 percent, respectively,” the company said.
“Meralco has always emphasized that if the IPP plants reach higher dispatch levels, this will result in lower power rates charged by these plants,” it added.
Meralco said it expects Napocor’s rates to decline due to the reduction in its fuel purchase power cost adjustment and foreign exchange adjustment for August as ordered by the Energy Regulatory Commission.
The generation charge, which is the electric bill’s biggest component, averages about 60 percent of a customer’s average monthly power bill. The charge goes directly to Meralco’s power suppliers.