Meralco to cut generation charge by around P0.30/kwh

Business World Online
Posted on March 07, 2014 06:37:56 PM  

MANILA Electric Co. (Meralco) will cut its generation charge by around 30 centavos per kilowatt-hour (kWh), a company spokesman said, part of an adjustment prompted by lower costs incurred from the utility’s suppliers. 
“We expect a reduction of more or less 30 centavos per kWh in the generation charge this month,” Meralco spokesman Joe R. Zaldarriaga said in a text message to reporters. 
Other power bill components -- like the transmission and system loss charges -- still have to be considered with respect to the final rate reduction that customers will get, he added. 
“We don’t know yet if the other charges are higher or lower but normally, when generation charge goes down, the overall rate goes down since that’s a huge component of the bill.” 
Final figures will be issued Monday, Mr. Zaldarriaga said. 
“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 on Tuesday when it telegraphed the rate cut. 
The generation charge 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%). February’s generation charge was P5.54 per kilowatt-hour (kWh), down from the P5.67/kWh imposed in January. 
Deferred charges comprising adjustments for December and January, meanwhile, remain hanging over consumers’ heads. 
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’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. -- Claire-Ann Marie C. Feliciano source