Meralco says rates to go down

Business World Online 
Posted on March 05, 2014 10:11:35 PM 
By Claire-Ann C. Feliciano, Reporter 

CUSTOMERS of Manila Electric Co. (Meralco) can expect to pay less for power this month, the distribution utility yesterday said, given lower costs incurred from suppliers. 
"We have good news for our customers. They may see another decrease in the generation charge in their March bills [following a reduction last month]," the company said in a statement. February’s generation charge was P5.54 per kilowatt-hour (kWh), down from the P5.67/kWh imposed in January. 
"Based on initial figures, the cost of supply from our power supply agreements, independent power producers and from the Wholesale Electricity Spot Market have all gone down during the February supply month, which will impact on the March bill," Meralco said. 
The generation charge -- the cost of power sold to a power distributor -- accounts for around 57% of total charges in Meralco’s electricity bill. 
The rest comprises the distribution charge (17.6%), transmission charge (9%), system loss charge (5%), and taxes and other charges (11.5%). 
The firm said the March generation rate was still being finalized. Meralco utility economics head Larry S. Fernandez said the figure could be announced by Monday. 
"There are no figures yet. There are strong indications that generation charge will be lower than February’s," Mr. Fernandez reiterated in a text message. 
Meralco also urged customers to prepare for the summer months as electricity consumption historically goes up during the period. 
"According to our weather bureau... we could start experiencing... hot weather starting next month. Given this advisory, we would like to encourage our customers to practice energy efficiency," the firm said. 
Meralco suggested unplugging appliances when not in use and setting a timer for air conditioners before bedtime so that the units would not have to run the entire night. 
"In buying appliances, check and compare the energy efficiency factor (EEF) of the different brands," it added, explaining that a higher EEF means better energy efficiency. 
The utility’s announcement of possible lower March generation charges comes in the wake of complaints on a bill format that has caused confusion. 
The Energy Regulatory Commission has asked Meralco to explain the format, which included components such as the "Balance from Previous Billing," "Total Current Amount" and "Total Amount Due." 
The "Balance From Previous Billing" covers unpaid amounts relating to a planned rate hike that is being reviewed by the Supreme Court. 
A P4.15/kWh increase supposed to have been implemented in tranches beginning last December has been ordered shelved by the high court, which is hearing a complaint filed by party-list legislators and consumer groups. 
An additional P5.33/kWh rate hike, also to be charged in stages, is being sought by Meralco, which says that this covers unpaid balances to power suppliers. 
Meralco has said that it "has no intention to collect the deferred amount," which it claimed was included in the bill only for "transparency purposes." 
"In recognition of the feedback we got from our customers, though, we will make it clearer in their March bills as to which amount they will only have to pay.
In addition, the deferred amount will no longer be included in the ‘Total Amount Due’," the company said. Meralco also said that only 7% of its 5.5 million customers received bills with the deferred amount itemized, adding that those who paid in full would be refunded. 
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source