By:
INQUIRER.net BrandRoom 10:12 AM August 13, 2019
The
Manila Electric Company (MERALCO) announced today the fourth consecutive month
of lower power rates, as overall electricity rates for a typical household
consuming 200kWh decreased to P9.5674 per kWh this August from last month’s
P9.9850 per kWh. The downward adjustment of P0.4176 per kWh will mean a
decrease of around P84 in the typical household’s total bill.
The
fourth straight month of electricity rate decrease represents a total downward
adjustment of almost P1.00 per kWh since May 2019.
Lower
WESM charges lead to overall generation charge decrease
From
P5.4227 per kWh last month, generation charge for August went down to P4.9620
per kWh, a decrease of P0.4607 per kWh.
The
generation charge decrease is primarily due to lower charges from the Wholesale
Electricity Spot Market (WESM).
WESM
charges decreased by P6.2080 per kWh due to improved supply conditions in the
Luzon grid. While the National Grid Corporation of the Philippines (NGCP)
placed Luzon on Yellow Alert in the first half of July, there was no Red Alert
during the whole month. The share of WESM to Meralco’s supply needs went up to
11%.
On
the other hand, cost of power from the Independent Power Producers (IPPs)
increased by P0.0911 per kWh despite the strengthening of the peso against the
US dollar and lower fuel prices as a result of the quarterly repricing of
Malampaya natural gas and continued decline in coal prices. Higher IPP costs
were largely due to lower average plant dispatch with the scheduled maintenance
of Sta. Rita Modules 20, 30 and 40 in July. This was offset as cost of power
from the Power Supply Agreements (PSAs) decreased by P0.0656 per kWh due to
lower fuel prices and peso appreciation. About 67% of PSA costs are
dollar-denominated. IPPs and PSAs provided 41% and 48% of Meralco’s supply
needs, respectively.
This
month, transmission charge for residential customers increased by P0.0334 per
kWh. Taxes and other charges also registered a slight increase of P0.0097 per
kWh.
Meralco’s
distribution, supply, and metering charges, meanwhile, have remained unchanged
for 49 months, after these registered reductions in July 2015. Meralco
reiterated that it does not earn from the pass-through charges, such as the
generation and transmission charges. Payment for the generation charge goes to
the power suppliers, while payment for the transmission charge goes to the
NGCP. Taxes and other public policy charges like the FIT-All rate are remitted
to the government.
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