Meralco systems loss at record low

posted March 06, 2016 at 11:35 pm by  Alena Mae S. Flores

http://thestandard.com.ph/business/201073/meralco-systems-loss-at-record-low.html

Consumers of Manila Electric Co. saved P0.12 per kilowatt-hour, or equivalent to P4.5 billion last year, after the utility registered an all-time low systems loss.

Meralco, the country’s biggest electricity retailer, reported an all-time best system loss rate of 6.47 percent in 2015, a 0.02 percentage point improvement from 6.49 percent in 2014.

Systems loss refers to the power lost due to technical and non-technical system factors. It is part of the distribution utilities’ performance metrics and is regularly monitored by the Energy Regulatory Commission.

Meralco’s systems loss is significantly lower than the 8.5-percent cap imposed by the ERC on distribution utilities.

Savings to Meralco customers reached P22.1 billion, or P0.09 per kWh from 2008 to 2015.

“Operational excellence marked the performance of Meralco’s distribution system, breaking new records in terms of system loss, availability, reliability and power quality, speed to process and energize new customers and even call center response,” Meralco president Oscar Reyes said.

Meralco said aside from ensuring service excellence and reliable sourcing and delivery of power, it was also providing them at least cost.

The average bill of Meralco customers across all customers last year decreased 12 percent year-on-year. Generation charge, which represents 54 percent of the bill, was 16 percent lower in 2015 as a result of competitively priced power supply and lower fuel prices.

Meralco’s distribution charge, which accounts for 18 percent of the power bill, was also down P0.12 per KWh with the implementation of its interim rate of P1.3810 per kWh.

Meralco said the average generation cost of P4.37 per KWh in 2015 was the lowest in the past several years, reflecting the positive impact of Meralco’s supply structure and lower fuel prices in the global market.

The company, which has over 5.8 million customers in its franchise area, reported a core net income of P18.9 billion in 2015, up four percent from P18.1 billion in 2014.

Meralco earlier said it posted a 5.4-percent increase in sales volume in 2015, after consumer segments registered growth.

“All segments are strong especially residential due to lower gen charges, low inflation, El Niño which meant higher temperatures, stable supply and a lot of our customer programs,” Meralco senior vice president Al Panlilio said. 

Meralco is forecasting a lower sales volume growth of 3 percent to 3.5 percent this year after a high base of 5.4 percent expansion in 2015.

Meralco president Oscar Reyes earlier said the company’s sales volume growth was historically within the range of 3 percent to 3.5 percent.

Reyes noted that inflation had been at an all-time low, giving consumers a disposable income that increased their purchasing power.

“Even businesses, because of the low inflation, the cost of doing business is lower. It leaves people with more money to spend on things that drives electricity,” he said.