Updated
By Myrna Velasco
Customers of Manila
Electric Company (Meralco) can expect relatively slight uptrend in overall
electricity tariff in their August billing cycle in spite of higher gas prices
because of the “cost offsetting” on some of the rate components, the utility
firm said.
“We see August rates as
stable though the quarterly re-pricing of Malampaya, which is benchmarked on
world crude prices, may cause a slight uptick in rates,” Meralco spokesperson
Joe Zaldarriaga said.
He qualified that “the
average Dubai crude in the second quarter of this year was higher than the
average in the previous quarter.”
Malampaya gas is
oil-indexed, hence, movement in global petroleum prices will trigger swings on
the domestically produced gas from the field.
According to Meralco
Vice President Lawrence S. Fernandez, the utility firm sourced roughly
60-percent of its requirements from the gas-fired power plants in the last
supply month.
Despite the marked
upswing in oil prices though, Meralco emphasized that it will still need to
“consider the cooler temperatures which somehow tamed demand,” especially in
July.
In addition, there had
been no registered yellow alerts, which Zaldarriaga explained are factors that
could help “mitigate the rise in natural gas prices.”
Fernandez added the
higher prices then “may be offset by lower spot market prices as demand was
generally lower in July versus June.”
In fact, the utility
firm asserted that the rainy season and cooler weather phenomenon would likely
soften demand in the second half of the year, which essentially would also be
affecting its rates.
Meralco rates are
adjusted on a monthly basis – with various components generally fluctuating
primarily the pass-through items, except for regulated tariffs like its own
distribution charge.
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