Electricity rates for June still unsettled — Meralco

POWER DISTRIBUTOR Manila Electric Co. (Meralco) said electricity rates for June remain uncertain as the factors contributing to the overall charge are mixed.

“We are still waiting for all the final billings from our suppliers for the computation of power rates for the June billing period,” Meralco said in a statement on Thursday.

The company said initial information indicates a potential increase in transmission charges due to a possible uptick in prices in the reserve market.

Under the reserve market, the system operator buys power reserves to ensure the proper operation of the energy grid.

Meanwhile, Meralco is hoping the generation charge remains “flattish” and that there will be no significant movement in this month’s billing following the sharp decline in May.

“Should there be any increase, we hope that this could be mitigated by lower prices from the Wholesale Electricity Spot Market (WESM) as announced by the spot market operator,” the power distributor said.

Data from the Independent Electricity Market Operator of the Philippines showed the average WESM price systemwide in May declined by 11.2% month-on-month to P4.01 per kilowatt-hour (kWh).

The lower spot price was attributed to a higher supply margin during the period.

For Luzon alone, power prices in the WESM decreased by 7.9% to P4.23 per kWh.

Generation charges, which cover the cost of power purchased from suppliers, usually account for more than 50% of the monthly electricity bill.

Transmission charges, meanwhile, refer to the cost of delivering power from suppliers to the distribution system and constitute around 3% of the bill.

Meralco is hoping that the continued implementation of the P19.96-billion refund, approved by the Energy Regulatory Commission (ERC), will provide slight relief amid possible increases in other components.

The refund, which must be implemented within three years, translates to an average rate of P0.1189 per kWh.

In March, electricity rates declined by P0.7499 per kWh to P12.2628 per kWh from P13.0127 per kWh in April, driven by lower generation and transmission charges.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera