Meralco power rates to go down in January
RESIDENTIAL customers of Manila Electric Co. (Meralco) will see lower electricity bills in January due to a drop in generation costs.
In a statement on Monday, the company said the rate for a typical household decreased by P0.0746 per kilowatt-hour (/kWh) to P9.7027/kWh this month, from the P9.7773/kWh in December.
This translates to a P15 reduction in electricity bills for households consuming 200 kWh. Monthly bills of households consuming 300 kWh, 400 kWh, and 500 kWh will fall by P22, P30, and P37, respectively.
Meralco said the generation charge fell by 0.1081/kWh to P5.4262/kWh in January, “on the back of lower costs from power supply agreements (PSAs) and independent power producers (IPPs) that more than offset the higher charges from the Wholesale Electricity Spot Market (WESM).”
“This is a welcome relief for our customers and a good way to open the year,” Meralco Vice-President and Head of Corporate Communications Agapito Joe D. Zaldarriaga said at a media briefing on Monday.
He said the initial expectation was for an increase in the rates based on the market, but the situation was reversed after PSA and IPP rates fell by P0.4375 and P0.0543 per kWh, respectively.
“The higher share of excess energy deliveries of AC Energy plants and lower coal prices contributed to the reductions.
Meanwhile, WESM charges rose by P0.8511/kWh due to the “higher average capacity on outage in the Luzon grid.”
“Damage from Typhoon Odette and the continued Malampaya gas supply restriction also contributed to the grid’s tight supply condition,” Meralco said.
PSAs and IPPs contributed 46.5% and 41.3%% of Meralco’s energy requirement, while WESM’s share stood at 12.2%.
Transmission charges for residential customers jumped by P0.0728/kWh, as ancillary service charges went up.
Taxes and other charges fell by P0.0393/kWh.
Collection of the universal charge-environmental charge worth P0.0025/kWh remains suspended.
The company’s distribution, supply, and metering charges have been unchanged for 78 months.
Meralco said the ongoing refund of distribution charges cushioned the rise of the overall power rates in January.
The refund, which the Energy Regulatory Commission (ERC) had ordered Meralco to implement beginning March 2021, is based on the difference between the actual weighted average tariff and the ERC’s interim average rate for distribution charges for July 2015 to November 2020.
DEMAND TO PEAK IN MAY
There is no guarantee the downward trend in power rates would continue, especially since the summer season is approaching, said Mr. Zaldarriaga.
Meralco Vice-President and Head of Utility Economics Larry S. Fernandez said the company is preparing because demand is expected to peak in the last week of May or early June.
In December, the company proceeded with its emergency procurement of 170-megawatt (MW) power supply in preparation for the summer months and the national elections.
The supply, which is still open for bid submission until Feb. 2, will cover Feb. 26 and July 25.
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. — M.C.Lucenio
