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MANILA, Philippines - Power rates would increase by 51 centavos per kilowatt-hour (kwh) this month, the Manila Electric Co. announced yesterday.
In a statement, Meralco said the increase is primarily due to the increase in the generation cost of all its suppliers for the month of May. The overall generation charge for the June bill will rise to P5.53 from an average of P5.02 per kwh last May, it said.
The suppliers that hiked its generation cost are the National Power Corp. (Napocor) and Successor Generating Companies (SGCs) selling through the Transition Supply Contract, Independent Power Producers (IPPs), and generators selling power through the Wholesale Electricity Spot Market (WESM).
The generation charge is the biggest component of the electricity bill, comprising about 60 percent of what consumers pay for.
Meralco also cited the big increase in prices at the WESM as average prices went up by P1.89 per kwh last month WESM’s energy share to Meralco also went up from 4 percent in the April supply month to 9 percent in May. IPPs and Napocor contributed 46 and 45 percent, respectively, to Meralco’s total generation purchases in May.
System peak demand for power likewise rose by more than 400 MW from April to May. As a result, more electricity was needed during the daytime peak periods, when electricity from generators is more expensive.
Meralco said Napocor’s selling rate in May also increased due to an increase in the amount of peak purchases.
The average IPP cost, on the other hand, also increased by 16.2 centavos per kwh, although the IPPs continued to be Meralco’s lowest cost source of supply.
The slightly higher IPP costs were driven by the higher cost of fuel used, combined with the depreciation in the peso-dollar exchange rate.
Meralco however said residential customers and commercial establishments with large air-conditioning loads might see a decline in their electricity consumption with the onset of the rainy season.
It reiterated that it is not only price that impacts on customers’ electricity bills, but power usage as well.
Eastern Samar Rep. Ben Evardone, one of the three authors of the bill, said the approval of the measure is timely since the discount is set to expire on June 26.
The Electric Power Industry Reform Act (Epira) of 2001 offers subsidized rates to households using up to 100 kwh a month.
Evardone said Speaker Feliciano Belmonte Jr. informed him Monday night that the Senate has approved a similar version of the House measure on discounted power rates.
“We hope to have the final version before the break this weekend so it could be sent to President Aquino,” he said.
Evardone’s co-authors are Rep. Rufus Rodriguez of Cagayan de Oro City and the chairperson of the House committee on energy, Rep. Henedina Abad of Batanes.
Energy Regulatory Commission executive director Francis Juan earlier told the Abad committee that households using 100 kwh or less a month would have to pay the full rates if the subsidy program will not be extended.
Under the subsidy scheme, the discounts given to low-income consumers are paid by heavy users or the more affluent households.
The Department of Energy has not recommended the extension of the subsidy scheme.
Abad’s energy committee has found out that the cost of electricity in the country is the second highest in Asia, next to Singapore, and is even higher than in Japan. With Jess Diaz
In a statement, Meralco said the increase is primarily due to the increase in the generation cost of all its suppliers for the month of May. The overall generation charge for the June bill will rise to P5.53 from an average of P5.02 per kwh last May, it said.
The suppliers that hiked its generation cost are the National Power Corp. (Napocor) and Successor Generating Companies (SGCs) selling through the Transition Supply Contract, Independent Power Producers (IPPs), and generators selling power through the Wholesale Electricity Spot Market (WESM).
The generation charge is the biggest component of the electricity bill, comprising about 60 percent of what consumers pay for.
Meralco also cited the big increase in prices at the WESM as average prices went up by P1.89 per kwh last month WESM’s energy share to Meralco also went up from 4 percent in the April supply month to 9 percent in May. IPPs and Napocor contributed 46 and 45 percent, respectively, to Meralco’s total generation purchases in May.
System peak demand for power likewise rose by more than 400 MW from April to May. As a result, more electricity was needed during the daytime peak periods, when electricity from generators is more expensive.
Meralco said Napocor’s selling rate in May also increased due to an increase in the amount of peak purchases.
The average IPP cost, on the other hand, also increased by 16.2 centavos per kwh, although the IPPs continued to be Meralco’s lowest cost source of supply.
The slightly higher IPP costs were driven by the higher cost of fuel used, combined with the depreciation in the peso-dollar exchange rate.
Meralco however said residential customers and commercial establishments with large air-conditioning loads might see a decline in their electricity consumption with the onset of the rainy season.
It reiterated that it is not only price that impacts on customers’ electricity bills, but power usage as well.
Discounted rates for 20 years
The House of Representatives meanwhile approved on third and final reading a bill that would extend lifeline or discounted power rates for 20 years.Eastern Samar Rep. Ben Evardone, one of the three authors of the bill, said the approval of the measure is timely since the discount is set to expire on June 26.
The Electric Power Industry Reform Act (Epira) of 2001 offers subsidized rates to households using up to 100 kwh a month.
Evardone said Speaker Feliciano Belmonte Jr. informed him Monday night that the Senate has approved a similar version of the House measure on discounted power rates.
“We hope to have the final version before the break this weekend so it could be sent to President Aquino,” he said.
Evardone’s co-authors are Rep. Rufus Rodriguez of Cagayan de Oro City and the chairperson of the House committee on energy, Rep. Henedina Abad of Batanes.
Energy Regulatory Commission executive director Francis Juan earlier told the Abad committee that households using 100 kwh or less a month would have to pay the full rates if the subsidy program will not be extended.
Under the subsidy scheme, the discounts given to low-income consumers are paid by heavy users or the more affluent households.
The Department of Energy has not recommended the extension of the subsidy scheme.
Abad’s energy committee has found out that the cost of electricity in the country is the second highest in Asia, next to Singapore, and is even higher than in Japan. With Jess Diaz
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