Monday, July 13, 2020

Meralco: Electricity demand in service areas improving


By Lenie Lectura July 13, 2020

Demand in areas where the Manila Electric Co. (Meralco) is assigned to distribute electricity is picking up as government relaxes quarantine restrictions.
“Aggregate demand for power has been gradually increasing since the initial implementation of community quarantine,” said Meralco utility economics head Lawrence Fernandez in a text message.
The utility firm, in a virtual press conference, reported over the weekend that power demand rose to its highest level in June since the start of the enhanced community quarantine (ECQ) last March 16.
“From a peak of only 5,453 megawatts (MW) in April, demand has risen to 6,428MW in May and 7,051 MW in June, both due to warmer weather and increased economic activity. However, this is still lower than the peak of 7,584MW registered in March, right before the imposition of the ECQ,” said Fernandez.
Meralco serves Metro Manila, where it is the sole electricity distributor, as well as some nearby provinces, like Bulacan, Cavite, Laguna, Batangas, Rizal, and Quezon. It has over 6 million customers.
It announced last Friday that July power rates will go down by P0.0286 per kilowatt hour (kWh), from last month’s P8.7252 per kWh, to P8.6966 per kWh.  This is equivalent to a reduction of around P6 in the total bill of residential customers consuming 200 kWh.
This is the lowest rate to be implemented since September 2017, Meralco said.
Generation charge, which makes up bulk of the power rates, decreased by P0.0069 per kWh to P4.3344 per kWh this July. For four straight months, generation charge has been declining because Meralco invoked force majeure (FM) provision in its power supply agreements with power generators due to slow demand brought about by the pandemic.

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