MANILA, Philippines—Customers of the Manila Electric Co. should brace for higher electricity bills this month, as the basic generation charge has been increased by 98 centavos per kilowatt-hour to P5.2940 per kWh.
This means that households consuming about 100 kWh will have to pay an additional P98 while those consuming 200 kWh monthly will need to pay P196 more for their November power bills. Households consuming 300 kWh will have to pay for a higher increase of P294 this month.
According to Meralco, the increase was largely caused by the higher energy prices at the wholesale electricity spot market (WESM), which accounted for 55 centavos, or more than half of the total increase in the generation charge this month.
Higher WESM prices
The electricity distributor explained that the effective WESM price billed to Meralco in October—which becomes the basis for the November generation charge—was P11.34 per kWh, more than P4 higher than the P7.15-per-kWh rate for September.
The cost of Meralco’s WESM purchases last October approximated the level in March (P11.36 per kWh) and was slightly lower than the peak of P12.16 per kWh recorded last February, which more than doubled consumers’ power bills.
Meralco, however, purchased only 10 percent of its electricity requirements from the WESM last month.
Meralco reported that the state generator, the National Power Corp., has also increased its electricity rate to P4.85 per kWh.
But this was to be expected as the Napocor rate last month was abnormally low at P3.68 per kWh, which was reflected in a one-time adjustment that effectively lowered the generation charge by 34 centavos, Meralco said.
Meralco sources 42 percent of its energy requirements from Napocor, which include the 14 percent allotted for special programs such as the ecozone rate.
IPP power cheaper
As in previous months, Meralco claimed that its cheapest sources of power are the independent power producers (IPPs)—the Quezon Power coal facility, and the 1,000-megawatt Sta. Rita and the 500-MW San Lorenzo natural gas-fired power plants. The latter two plants are owned by the First Gas Holdings of the Lopez group, which formerly controlled Meralco.
Unlike the cost of power from Napocor and WESM, Meralco said the average cost of electricity from the IPPs remained relatively stable at P4.23 per kWh, up slightly by 3.6 centavos per kWh from a low of P4.19 per kWh registered in September.
However, the IPPs’ average dispatch, or electricity output, stood at 86.8 percent, lower than the peak dispatch of 93.9 percent registered in September.
Meralco explained the low dispatch as having been caused by a major maintenance outage at the San Lorenzo natural gas facility that began last Oct. 16. The plant is expected to resume operations on November 12.
Reversing price trend
The increase in power bills this month reversed a decreasing price trend over the past two months, when consumers’ electricity bills reflected decreases in the generation charge totaling P1.78 per kWh.
The cost of power sold by electricity distributors like Meralco can move from month to month based on many factors like fuel prices, the electricity output of the IPPs, the foreign exchange rate and WESM prices, among others.
Adjustments in the cost of generation from its various suppliers are faithfully reflected in customers’ bills, such as this month’s reduction, Meralco said.
Meralco, the country’s biggest electricity distribution utility, covers Metro Manila and the provinces of Batangas, Bulacan, Cavite, Laguna, Pampanga, Quezon and Rizal. It services a total of 4.7 million customers.
This means that households consuming about 100 kWh will have to pay an additional P98 while those consuming 200 kWh monthly will need to pay P196 more for their November power bills. Households consuming 300 kWh will have to pay for a higher increase of P294 this month.
According to Meralco, the increase was largely caused by the higher energy prices at the wholesale electricity spot market (WESM), which accounted for 55 centavos, or more than half of the total increase in the generation charge this month.
Higher WESM prices
The electricity distributor explained that the effective WESM price billed to Meralco in October—which becomes the basis for the November generation charge—was P11.34 per kWh, more than P4 higher than the P7.15-per-kWh rate for September.
The cost of Meralco’s WESM purchases last October approximated the level in March (P11.36 per kWh) and was slightly lower than the peak of P12.16 per kWh recorded last February, which more than doubled consumers’ power bills.
Meralco, however, purchased only 10 percent of its electricity requirements from the WESM last month.
Meralco reported that the state generator, the National Power Corp., has also increased its electricity rate to P4.85 per kWh.
But this was to be expected as the Napocor rate last month was abnormally low at P3.68 per kWh, which was reflected in a one-time adjustment that effectively lowered the generation charge by 34 centavos, Meralco said.
Meralco sources 42 percent of its energy requirements from Napocor, which include the 14 percent allotted for special programs such as the ecozone rate.
IPP power cheaper
As in previous months, Meralco claimed that its cheapest sources of power are the independent power producers (IPPs)—the Quezon Power coal facility, and the 1,000-megawatt Sta. Rita and the 500-MW San Lorenzo natural gas-fired power plants. The latter two plants are owned by the First Gas Holdings of the Lopez group, which formerly controlled Meralco.
Unlike the cost of power from Napocor and WESM, Meralco said the average cost of electricity from the IPPs remained relatively stable at P4.23 per kWh, up slightly by 3.6 centavos per kWh from a low of P4.19 per kWh registered in September.
However, the IPPs’ average dispatch, or electricity output, stood at 86.8 percent, lower than the peak dispatch of 93.9 percent registered in September.
Meralco explained the low dispatch as having been caused by a major maintenance outage at the San Lorenzo natural gas facility that began last Oct. 16. The plant is expected to resume operations on November 12.
Reversing price trend
The increase in power bills this month reversed a decreasing price trend over the past two months, when consumers’ electricity bills reflected decreases in the generation charge totaling P1.78 per kWh.
The cost of power sold by electricity distributors like Meralco can move from month to month based on many factors like fuel prices, the electricity output of the IPPs, the foreign exchange rate and WESM prices, among others.
Adjustments in the cost of generation from its various suppliers are faithfully reflected in customers’ bills, such as this month’s reduction, Meralco said.
Meralco, the country’s biggest electricity distribution utility, covers Metro Manila and the provinces of Batangas, Bulacan, Cavite, Laguna, Pampanga, Quezon and Rizal. It services a total of 4.7 million customers.
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