December power bills to go down as Meralco cuts rates

Business World Online

Posted on December 06, 2012 10:37:10 PM

MANILA ELECTRIC CO. (Meralco) customers should see lower power bills this month as the utility yesterday announced cuts in its generation, transmission and system loss charges.

One thing less to worry about. -- BW File Photo

Meralco said its generation charge had been trimmed by P0.15 per kilowatt-hour (kWh) to P5.47/kWh, mainly due to the cheaper cost of power from National Power Corp. (Napocor).

It said Napocor rates went down by P0.31/kWh last month, offsetting a P0.04/kWh increase in costs from independent power producers (IPPs).

That rise was attributed to the reduced dispatch of First Gas Power Corp. and Quezon Power Philippines Ltd. and the distribution utility said “IPP costs would have been higher without the improved dispatch and lower fuel costs of SEM-Calaca [Power Corp.].”

Wholesale Electricity Spot Market prices also increased by P0.52/kWh but this was mitigated by the fact that it provided just 6% of Meralco’s total power supply requirement, down from 7% in October.

Napocor and the IPPs accounted for 51% and 43%, respectively of the utility’s needs.

Transmission and system loss charges, meanwhile, were reduced by P0.11/kWh and P0.04/kWh, respectively. Meralco explained that lower National Grid Corp. of the Philippines charges were behind the transmission charge reduction, which prompted the cut in the system loss charge.

Customers consuming 200 kWh per month -- who comprise the biggest use segment -- will see a P0.31/kWh decrease in their bills this month, the utility said.

Shares of Meralco, which grew its net income by 37% to P13.6 billion as of September, shed P2.20 or 0.83% to P263.2 apiece yesterday.    source