Power rates up this month

By Ted Torres (The Philippine Star) Updated February 08, 2012 12:00 AM


MANILA, Philippines - Customers of the Manila Electric Co. (Meralco) can expect higher electricity rates this month as the generation charge increased by P0.11 per kilowatt-hour (kwh).


In a press statement, Meralco said the generation charge went up from January’s P5.46 to P5.57 per kwh this month due to the increase in electricity prices from its power suppliers.


Charges from the Wholesale Electricity Spot Market (WESM) increased by P4.29 per kwh, contributing P0.09 of the 11-centavo per kwh increase in generation charge, it said.


“WESM’s impact was mitigated, though, by Meralco’s reduction in its purchase from the spot market, from 13 percent to five percent of its total requirement,” Meralco said.


It said the rates of the National Power Corp. went up by P0.04 per kwh because of the shift to more expensive dry-season rates. Napocor’s overall impact on the generation charge was, however, mitigated by Meralco’s increased purchases during off-peak periods, when costs are lower.


The other power producers also registered an average 16.76-centavo per kwh increase due to higher fuel costs, it said.


Meralco sourced 48 percent of its power requirements in January from Napocor, 47 percent from the other power producers and five percent from the WESM.


“The generation charge, which is the electricity bill’s biggest component, averages almost 60 percent of the customer’s average monthly power bill. This charge goes directly to Meralco’s power suppliers and not to Meralco,” it said.