MANILA, Philippines—Customers of power distributor Manila Electric Co. should gear for higher electricity bills this month, as the generation charge rose by 11.84 centavos per kilowatt-hour (kWh) to P4.8623 per kWh in February.
This increase means that households consuming about 100 kWh monthly will have to pay P11.84 more this month, while those consuming 200 kWh will have to pay P23.68 more. Households consuming 300 kWh can expect a P35.52-hike in their February power bills.
Meralco explained in a statement that the higher electricity prices this month had been triggered by the lower dispatch (or electricity output) from its independent power producers, given a decrease in power demand last month. This resulted in higher power costs.
“The utilization level of the IPPs fell below 80 percent for the first time since April 2010, as Meralco’s peak demand went down by more than 200 megawatts to 4,657 MW due to cooler temperatures,” the utility firm explained.
Meralco, however, stressed that despite the increase in the cost of power taken from the IPPs, these facilities remained as the company's cheapest source of electricity.
The distribution utility currently sources from three IPPs namely the Quezon Power Philippines Ltd. with its coal-fired facility, the 1,000-megawatt Sta. Rita, and the 500-MW San Lorenzo natural gas-fired power plants, which are both owned by the Lopez-led First Gas Holdings.
Meanwhile, the increase in the IPP costs were partly offset by a P1.36-per-kWh reduction in the effective Wholesale Electricity Spot Market (WESM) price billed to Meralco in January, which is the basis of the February generation charge.
Similarly, the cost of power taken from state-run National Power Corp. (Napocor) fell by 3.43 centavos per kWh, helping taper off the increases in IPP costs.
According to Meralco, it took 46.6 percent of its electricity requirements from Napocor last month; 46.4 percent from the IPPs; and only 7 percent from the WESM.
The increase in power bills this February followed two months of successive decreases in the generation charge, amounting to a combined 55-centavo-per-kWh drop from December 2010 to January 2011.
Despite the latest upward adjustment, Meralco noted that the February generation charge still registered a lower rate than those recorded last year, except during the months of January and October.
Meralco reiterated that the generation charge is entirely a pass-through charge and does not accrue or go to Meralco. The cost of power sold by the generating companies can move from month to month based on many factors beyond its control like fuel prices, the dispatch of the IPPs, the foreign exchange rate and WESM prices, among others.
The company added that should there be adjustments in the cost of generation from its various suppliers, it would reflect these changes in the customers’ bills, such as this month’s increase.
The generation charge, which is the electricity bill’s biggest component, averages about 60 percent of the customer’s average monthly power bill. This charge goes directly to Meralco’s power suppliers.
This increase means that households consuming about 100 kWh monthly will have to pay P11.84 more this month, while those consuming 200 kWh will have to pay P23.68 more. Households consuming 300 kWh can expect a P35.52-hike in their February power bills.
Meralco explained in a statement that the higher electricity prices this month had been triggered by the lower dispatch (or electricity output) from its independent power producers, given a decrease in power demand last month. This resulted in higher power costs.
“The utilization level of the IPPs fell below 80 percent for the first time since April 2010, as Meralco’s peak demand went down by more than 200 megawatts to 4,657 MW due to cooler temperatures,” the utility firm explained.
Meralco, however, stressed that despite the increase in the cost of power taken from the IPPs, these facilities remained as the company's cheapest source of electricity.
The distribution utility currently sources from three IPPs namely the Quezon Power Philippines Ltd. with its coal-fired facility, the 1,000-megawatt Sta. Rita, and the 500-MW San Lorenzo natural gas-fired power plants, which are both owned by the Lopez-led First Gas Holdings.
Meanwhile, the increase in the IPP costs were partly offset by a P1.36-per-kWh reduction in the effective Wholesale Electricity Spot Market (WESM) price billed to Meralco in January, which is the basis of the February generation charge.
Similarly, the cost of power taken from state-run National Power Corp. (Napocor) fell by 3.43 centavos per kWh, helping taper off the increases in IPP costs.
According to Meralco, it took 46.6 percent of its electricity requirements from Napocor last month; 46.4 percent from the IPPs; and only 7 percent from the WESM.
The increase in power bills this February followed two months of successive decreases in the generation charge, amounting to a combined 55-centavo-per-kWh drop from December 2010 to January 2011.
Despite the latest upward adjustment, Meralco noted that the February generation charge still registered a lower rate than those recorded last year, except during the months of January and October.
Meralco reiterated that the generation charge is entirely a pass-through charge and does not accrue or go to Meralco. The cost of power sold by the generating companies can move from month to month based on many factors beyond its control like fuel prices, the dispatch of the IPPs, the foreign exchange rate and WESM prices, among others.
The company added that should there be adjustments in the cost of generation from its various suppliers, it would reflect these changes in the customers’ bills, such as this month’s increase.
The generation charge, which is the electricity bill’s biggest component, averages about 60 percent of the customer’s average monthly power bill. This charge goes directly to Meralco’s power suppliers.
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