Another rate hike to pad power bills

Business World Online
THURSDAY, 29 MARCH 2012 22:39 PAUL ANTHONY A. ISLA / REPORTER


ANOTHER increase in power rates of the Manila Electric Co. (Meralco) is due in May apart from the P0.6904 per kilowatt-hour (kWh) adjustment in the generation rate of National Power Corp. (Napocor) also due in the same month.


In May, Manila-based customers of Meralco consuming an average of 200 kWh could expect an increase of P8.30 in their bills, as the power distributor has been allowed to impose a tax-recovery adjustment charge (TRAC) to recoup its local franchise-tax payments from 1994 to 2004. The TRAC varies from one city to another.


For instance, a household in Manila consuming 200 kWh a month could expect its power bill to rise by P63.54 due to the TRAC and the diluted adjustment in Napocor’s generation rate via the Generation Rate Adjustment Mechanism (GRAM) and the Incremental Currency Exchange Rate Adjustment (Icera).


Lawrence Fernandez, Meralco utility economics head, earlier told the BusinessMirror that the GRAM and Icera adjustment would be diluted to only P0.2762 per kWh since Meralco only gets an average of 40 percent of its requirements from Napocor.


A household consuming 200 kWh a month will have an increase of P55.24 in its power bills. Explaining this, Fernandez said 40 percent of P0.6904 per kWh is P0.2762 per kWh and when multiplied with 200 kWh is equivalent to P55.24.


On the other hand, the approved Meralco TRAC rates to be collected from customers in the provinces of Bulacan, Batangas, Cavite, Rizal and Laguna amount to P0.0235 per kWh, P0.0062 per kWh, P0.0026 per kWh, P0.0139 per kWh and P0.0299 per kWh, respectively.


Customers in the cities of San Jose del Monte, Batangas, San Pablo, Tagaytay, Lucena, Mandaluyong, Marikina, Quezon, Caloocan, Pasay, Las Piñas, Manila, Calamba and Pasig could expect an upward adjustment of P0.0082 per kWh, P0.0294 per kWh, P0.0476 per kWh, P0.0257 per kWh, P0.0254 per kWh, P0.0041 per kWh, P0.0160 per kWh, P0.0282 per kWh, P0.0399 per kWh, P0.0308 per kWh, P0.0245 per kWh, P0.0415 per kWh, P0.0008 per kWh and P0.0007 per kWh, respectively, in their power bills.


On Wednesday the ERC also issued an order allowing Napocor to collect P0.6904 per kWh from consumers in Luzon, P0.6060 per kWh in the Visayas and P0.0442 per kWh in Mindanao to recover its expenses on fuel, purchased power and foreign exchange from January 2007 to April 2010. These adjustments are being made through GRAM and Icera.


ERC said the GRAM and Icera rate adjustments will be reflected in consumers’ bills by May as the adjustments will take effect on the March 26 to April 25, 2012, billing period. For households in Metro Manila consuming 200 kWh a month, the rate adjustments translate to an increase of P55.24 in their Meralco bills.


With the imposition of the TRAC, they now have to pay P63.54.