Meralco cuts Dec. generation charge by 32 centavos per kWh

Business World Online

Posted on 11:06 PM, December 06, 2010

WHILE PRICES of necessities such as bread and cooking gas may be rising ahead of Christmas, consumers can at least take comfort that power rates have headed the other way.

Manila Electric Co. (Meralco) yesterday announced a 32-centavo per kilowatt-hour (kWh) reduction in December generation rates to P4.97/kWh, an adjustment expected to lop P64 off the bills of consumers using an average of 200 kWh per month.

The cut was traced to cheaper power at the Wholesale Electricity Spot Market (WESM).

"[E]lectricity in the WESM... went down by P4.99 per kWh this month. WESM prices for the supply month of November were at P6.35 compared to P11.34 of the preceding supply month," Meralco said in a statement.

This helped offset higher prices from other suppliers, the firm claimed even as WESM power accounted for less than one-fifth of its power purchases.

National Power Corp. (Napocor) rates increased by P0.44 to P5.29/kWh from P4.85/kWh while independent power producers (IPPs) San Lorenzo, Sta. Rita and Quezon Power also increased prices by P0.14 to P4.37/kWh from P4.23/kWh.

One San Lorenzo unit underwent maintenance from Oct.16 to Nov. 17, Meralco said, adding that "Lower dispatch from San Lorenzo is still expected next month as another unit is on maintenance starting Nov. 24 up to Dec. 19."

Meralco said it had obtained 14% of its power from the WESM, 41% from Napocor plants and 45% from IPPs.

The utility stressed that "the generation charge is entirely a pass through charge and does not go to Meralco." -- E. N. J. David