Generation, other charges drive up Meralco bill

Business World Online
Posted on August 08, 2014 07:43:00 PM

MANILA Electric Co. (Meralco) customers will have to pay more this month for power consumed in July given upward adjustments across several bill components.
Electricity rates will go up 31 centavos per kilowatt-hour (/kWh) in August, the utility said in a statement yesterday.

"An increase in generation charge and higher universal charge, lifeline subsidy and taxes drove overall upward adjustment," Meralco explained.

For this month, households consuming an average of 200 kWh per month -- which comprise about 75% of the firm’s customer base -- will have to pay P61.38 more, said Meralco Senior Assistant Vice-President Larry S. Fernandez.

Those consuming 300 kWh, 400 kWh and 500 kWh, on average will have to pay additional P92.07, P122.76, and P153.45, respectively.

The overall adjustment was driven mainly by a 23-centavo/kWh increase in generation charge to P5.64/kWh due to higher costs from suppliers.

Wholesale Electricity Spot Market (WESM) prices accounted for 17 centavos/kWh of the total increase in generation cost; while power supply agreements (PSAs) had a 6 centavo/kWh share.

The utility also cited the power supply shortfall amid the unscheduled and maintenance shutdown of various power plants that was aggravated by the impact of typhoon Glenda (international name: Rammasun) that hit the country last month.

"Damage caused by the typhoon to some transmission and generating facilities limited the output of a number of power plants located in Southern Luzon," Meralco explained, noting that this led to lower dispatch from plants.

"The presence of the secondary WESM price cap helped moderate the increase in WESM charges."

Meralco said Pagbilao 1 in Quezon and the Ilijan 1 and 2 in Batangas went on scheduled outage last month.

A total of 20 power plant units -- some of which were affected by the typhoon -- further depleted the supply in the Luzon grid. Among these plants were the two units of San Lorenzo plant, three units of Sta. Rita plant and two units of Calaca plant in Batangas; two units of GN Power plant in Bataan; two units of Sual plant in Pangasinan; and two units of Masinloc plant in Zambales.

PSAs, Independent Power Producers and WESM accounted for 53%, 40% and 7%, respectively, of Meralco’s total energy requirements.

The generation charge accounts for around 57% of total charges in Meralco’s electricity bill. The rest consists of distribution charge (17%), transmission charge (10%), system loss charge (5%), as well as taxes and other charges (11%).

Meralco said there was also 4 centavo/kWh increase in universal charge as the collection of previously deferred charge for missionary electrification pushes through.

Taxes and subsidies, meanwhile, posted a combined hike of 5 centavo/kWh.

While the distribution charge remained unchanged, transmission charge went down by 1 centavo/kWh due to lower ancillary charges.

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