Business World Online
Posted on October 25, 2013 09:00:29 PM
MANILA ELECTRIC Co. (Meralco) customers should expect a generation charge increase next month with maintenance work scheduled for the Malampaya gas project and two power plants, officials said on Friday.
Ricardo V. Buencamino, Meralco senior executive vice-president, said the Nov. 9-Dec. 8 maintenance of the Malampaya gas-to-power project would affect the 1,200-megawatt (MW) Ilijan, 1,000-MW Sta. Rita and the 500-MW San Lorenzo plants.
"The generation cost could increase to the vicinity of P1/kWh (kilowatt-hour) to even more than P2/kWh come November ... that should be seen in December billing month," Mr. Buencamino said in a briefing.
Meralco President Oscar S. Reyes said power rates would also be affected by the scheduled shutdown of units of the 735-MW Pagbilao and the 600-MW plants.
"There are two factors in the expected increase in generation cost. The oil ... to run the natural gas power plants and the prices in the WESM (Wholesale Electricity Spot Market) where Meralco will source its remaining power requirements," he added.
"So during the period, 180 MW will not be available because of the downrating of the Ilijan power plant as that shifts to biodiesel. And then during the back end and front end of the Malampaya shutdown, Calaca’s 330 MW and Pagbilao’s 375 MW will also be unavailable."
Estimates on the power rate increase could still change, Mr. Buencamino said.
"The price spike is unavoidable because of higher cost of oil-fired power plants will go to operation and there will be heavier reliance on the WESM," he added.
The generation charge accounts a little over half of the total power bill. The rest comprises distribution, transmission, system loss and other charges, plus taxes.
Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga. source
"The generation cost could increase to the vicinity of P1/kWh (kilowatt-hour) to even more than P2/kWh come November ... that should be seen in December billing month," Mr. Buencamino said in a briefing.
Meralco President Oscar S. Reyes said power rates would also be affected by the scheduled shutdown of units of the 735-MW Pagbilao and the 600-MW plants.
"There are two factors in the expected increase in generation cost. The oil ... to run the natural gas power plants and the prices in the WESM (Wholesale Electricity Spot Market) where Meralco will source its remaining power requirements," he added.
"So during the period, 180 MW will not be available because of the downrating of the Ilijan power plant as that shifts to biodiesel. And then during the back end and front end of the Malampaya shutdown, Calaca’s 330 MW and Pagbilao’s 375 MW will also be unavailable."
Estimates on the power rate increase could still change, Mr. Buencamino said.
"The price spike is unavoidable because of higher cost of oil-fired power plants will go to operation and there will be heavier reliance on the WESM," he added.
The generation charge accounts a little over half of the total power bill. The rest comprises distribution, transmission, system loss and other charges, plus taxes.
Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga. source
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